Property '06 taxes mistakingly paid by someone else, now they want money back.

[floridacoast]

What is the name of your state? FL
I am not sure if this is the correct category for this question, but I hope someone would be of assistance.

I was unaware of this until I received a surprising letter from let's call them "XYZ" Company. Apparently in Dec. '05 or Jan '06 XYZ Company inadvertently paid my 2006 Property Taxes for my condo (about $1500). My own Mortgage company paid these as well with my escrow. So, all this time I have had an overpayment (because of XYZ's mistake) and have a positive balance in my current escrow (I assumed because it was a miscalculation but now I know why). Apparently XYZ company made a huge error when closing someone elses property.

XYZ company apparently discovered their error and recently contacted me, by regular mail. They are informed me of the mistake and added they want their money back with the following statement: "Because XYZ Company had no legal obligation to pay your taxes, you have been unjustly enriched by its payment. In a legal procedure, a court could force you to reimburse us based on the unjust benefit that you received."

What should I do? In all honesty, if i had the money, I would research and confirm the error and send them a payment. However, times are hard (new, lower paying job due to company under sizing -- bad year with medical payments for children) and their error has been an unexpected godsend which has helped my own mortgage payments by reducing the escrow over the past year (as i said before, i had no idea until now. i assumed it was a miscalculation in my own closing which the mortgage company corrected).

So, do they have any legal means to force me to pay back their error (assuming it is correct)? They sent me a regular letter and a certified one (which I have not signed as of yet) -- Should I accept the certified letter? If the answer is they have no legal right, can they make my life hectic by attempting legal action? Would it be civil court?

If the answer is that they DO have a legal right, then, since it was their error and I really did not realize it until their letter, how should i approach them about letting them now that I cannot pay them in full (setup payments WITHOUT interest or penalty)?

Of course, if they have no legal recourse, then please let me know if I should reply and, if I should reply, exactly what to say (including any legalese that I could include that will make them think twice about harassing me).

Thank you for your help.

 

[HomeGuru]

What is the name of your state? FL
I am not sure if this is the correct category for this question, but I hope someone would be of assistance.

I was unaware of this until I received a surprising letter from let's call them "XYZ" Company. Apparently in Dec. '05 or Jan '06 XYZ Company inadvertently paid my 2006 Property Taxes for my condo (about $1500). My own Mortgage company paid these as well with my escrow. So, all this time I have had an overpayment (because of XYZ's mistake) and have a positive balance in my current escrow (I assumed because it was a miscalculation but now I know why). Apparently XYZ company made a huge error when closing someone elses property.

XYZ company apparently discovered their error and recently contacted me, by regular mail. They are informed me of the mistake and added they want their money back with the following statement: "Because XYZ Company had no legal obligation to pay your taxes, you have been unjustly enriched by its payment. In a legal procedure, a court could force you to reimburse us based on the unjust benefit that you received."

What should I do? In all honesty, if i had the money, I would research and confirm the error and send them a payment. However, times are hard (new, lower paying job due to company under sizing -- bad year with medical payments for children) and their error has been an unexpected godsend which has helped my own mortgage payments by reducing the escrow over the past year (as i said before, i had no idea until now. i assumed it was a miscalculation in my own closing which the mortgage company corrected).

So, do they have any legal means to force me to pay back their error (assuming it is correct)? They sent me a regular letter and a certified one (which I have not signed as of yet) -- Should I accept the certified letter? If the answer is they have no legal right, can they make my life hectic by attempting legal action? Would it be civil court?

If the answer is that they DO have a legal right, then, since it was their error and I really did not realize it until their letter, how should i approach them about letting them now that I cannot pay them in full (setup payments WITHOUT interest or penalty)?

Of course, if they have no legal recourse, then please let me know if I should reply and, if I should reply, exactly what to say (including any legalese that I could include that will make them think twice about harassing me).

Thank you for your help.

**A: you owe the money.

 

[Zigner]

HG is, of course, correct.
Why don't you give them a call and ask if you can make payments? Communication is key...

 

[Niko4321]

I actually have a friend going through this. So let me know the outcome. But I find it hard to believe that you can be held accountable for someone else's mistake. You spent the money believing it was yours to spend. Had you known that it was not yours, you would not have spent it like you did. What are you supposed to do now, take a loan to pay them back and pay the interest on a loan that you never wanted. Also, if you pay them back, then in theory, that money is being applied to your property taxes which is tax deductable. So you would have to go back and make an adjustment on your previous years taxes and possibly pay a tax preparer fee. A big headache for a mistake that you did not make. I think some kind of settlement could be made for say half the money. But I can't see them taking you to court for $1500 when their attorney fees would be more than that. Good luck!

 

[LindaP777]

But I find it hard to believe that you can be held accountable for someone else's mistake. !

That's because you are clueless.

You spent the money believing it was yours to spend.

That's because you are clueless.

I think some kind of settlement could be made for say half the money.

That's because you are clueless. You need to quit thinking . . .

 

[VeronicaLodge]

I actually have a friend going through this. So let me know the outcome. But I find it hard to believe that you can be held accountable for someone else's mistake. You spent the money believing it was yours to spend. Had you known that it was not yours, you would not have spent it like you did. What are you supposed to do now, take a loan to pay them back and pay the interest on a loan that you never wanted. Also, if you pay them back, then in theory, that money is being applied to your property taxes which is tax deductable. So you would have to go back and make an adjustment on your previous years taxes and possibly pay a tax preparer fee. A big headache for a mistake that you did not make. I think some kind of settlement could be made for say half the money. But I can't see them taking you to court for $1500 when their attorney fees would be more than that. Good luck!

You're joking right?

 

[HomeGuru]

That's because you are clueless.


That's because you are clueless.


That's because you are clueless. You need to quit thinking . . .

**A: need I say more. very fine response.