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Knowledge Kick

Notice of Overpayment - Incorrect - What Are My Options?

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Hi All,


I received a notice of overpayment from my previous employer. The employer is actually an extremely large bank, so collecting on debts is something they due already. I am listing this in case it's relevant at all.


The letter states that I was overpaid (upon leaving) as a result of "overpaid regular hours" and "overpaid vacation time that was unaccrued".


They then request that I remit payment by a certain date, in about 2 weeks. The problem with this is, I sincerely do not believe I was overpaid. In fact, prior to leaving, I saved certain emails related to this exactly. I knew I was leaving, so I made sure I looked this type of thing up, before I ultimately left. At one point, my hours were assigned incorrectly in the payroll system. The amount of hours wasn't wrong, but it was coded incorrectly and made my "vacation time available" decrease. I emailed my boss about this, but we couldn't change it at that point. I saved the emails, but I'm not sure how helpful or convincing they'd really be. Also, I still think I can sick days, etc. that would have covered this period of "overpayment".




1) Does anything I just said about not really being overpaid (in my opinion) matter at all?


I have a strong feeling that if they say I was overpaid, that's all that matters and I can't do anything about that.


2) If I formally contact them, call HR, etc. does this do anything to protect me? In other words, will they not put this on my credit report if I officially challenge it before the date listed?


I will write them a letter and/or call them, letting them know that I disagree. Will this have any benefit?


3) What happens if I don't pay it? Can they take the funds directly out of my checking account without my permission? The checking account I have is actually owned by the same bank (employer). Should I put my money in a different checking account just in case?


I just want to know if they can only pursue the money like a credit card company (send letters, call, etc.) OR if they can take the money directly, without my permission, sort of like the government can.


4) If I refuse to pay...how long until it appears on my credit report? What does it appear on the report as? Will it affect my score in a significant way? More than a credit card charge-off, for example?


I want to weigh my options here. Should I bite the bullet and pay even though I feel they are incorrect? Should I stand strong, because the downside isn't even all that bad?





Edited by Knowledge Kick

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This sounds like something more in the realm if employment law. I would check state laws and then contact a state ombudsman or state resource regarding "overpayment" claim, since if they do expect repayment for something you were rightfully owed compensation for it then can turn into a wage claim.


Good luck!



Sent from my iPhone using Tapatalk 2

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If it were me I'd move my funds out of the bank they're affiliated with and talk to someone in HR. Show them your emails regarding the incorrect coding and see if you can get it resolved.

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I agree with above. At least for the time being I would change banks. Are we talking about $500 or something like 10K?


I would also contact HR and see what they have to say.


I could be wrong but I can't think of a way that they would be able to put it on your credit report without sueing. Now if they sue you and win then you will have a judgement on your report which WILL lower your score a good bit.

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I'll challenge the thing officially with HR, because even if it doesn't help...it at least doesn't hurt. As far as the amount goes, it's in between $500 and $10,000. Definitely not something I just want to give up though.


Any additional insight?

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