I had my car written off in january and received the amount in March a few days later I also received another cheque from a company to my address and with all my details on, I banked this cheque and spent the money, 3 months later the company who should of received the money now want me to pay it to them, I truly believed this money was mine and do not see why I should pay it to the company when they didn't send it to me anyway?

Hi

I would write back saying that all monies you had received were payable to you and accepted in good faith. I suspect you may have realised that the 2nd cheque you received was not part of your claim, however, if it was clearly addressed to you, you banked it as most people would have.

The company that have written to you should have explained who they were, why they were requesting the money back and under what particular law they have the right to reclaim the money. I would ask for clarification of these details when you write back.

I have dealt with similar cases where money has been paid out in error. In the letters I sent to customers, I was very honest in admitting it was an error, explaining the cause (human error) and that we would not pursue legally due to cost. By asking customers to act with integrity, you would be surprised that most customers sent the money back. They did not wish to spoil there relationship with the company. Only a few customers did not send the money back and we did not offer renewal. The customer was then faced with having to find new Insurers at renewal, having been declined renewal. Obtaining Insurance where renewal has been declined can be difficult as you would have to disclose the details.

I would therefore write asking for clarification but do have in the back of your mind the possibility of a problem at renewal.

Huckster

Thank you for your reply it is most helpful, just to clarify it is not the insurance company but an agent working on behalf that sorted the claim and who is requesting the money paid in error. The money was for salvage of my car, the salvage company have paid myself rather than pay the third party company. So is nothing to do with my insurer (I don't think) although they are the only people I have any kind of contract with so am now even more concerened? Largest problem being I have spent the money believeing it was mine, I was confused by the cheque but have never been involved in a claim before?

Pollyolley

If the agent cannot get the money from you, they will get it from the Insurers. The Insurers will then ask you for the money and if you don't pay back, they may not offer renewal.

Whatever, the agent and/or the Insurers must offer you a clear explanation, so you can consider this further.

Huckster