Overpaid refund

[catlem]

New York

In February I purchased a new car and terminated my leased car 5 months early. All the paperwork was filled out by my car dealer. I knew I had to pay lease payments ahead. A couple of weeks later I received a check in the amount of $1,770.44 from the leasing bank. I immediately called the bank to ask if there was a mistake and was assured me that I was entitled to the refund.

Today, 3 1/2 months later I received a letter in the mail from that bank. They explained the refund had an error of $1,500 and they expected payment in full from me. I no longer have the money. What are my rights?

Any advice provided will be helpful. Should I hire an attorney? Should I offer to pay the money back in montly installments, even though I called and asked if it was accurate before I went ahead and spend the money?

 

[JETX]

"What are my rights?"
*** You have none. The lender is entitled to recover the overpayment.

"Should I hire an attorney?"
*** Why?? To do what??

"Should I offer to pay the money back in montly installments, even though I called and asked if it was accurate before I went ahead and spend the money?"
*** Of course you can ask them to accept payments, but they have no obligation to agree. And if you don't repay, they can file a lawsuit against you.

 

[catlem]

Ok, let me get this straight. The BANK makes a mistake. I call and ask if it's a mistake and am told NO...that the money is mine. I then proceed to spend the money. I am not told ANYTHING until THREE AND A HALF MONTHS LATER....At that time I am told to pay back the money and if I can't then they will sue?
I HAVE NO RIGHTS?????

You're telling me it's ok for a bank to make a mistake and no matter how long it takes for them to discover their mistake a private citizen is still treated like they were wrong?

 

[JETX]

Yep, sounds like you understand correctly. Simply, you cannot benefit frorm someone elses mistake. Even if they confirmed it to you first. The bank has the right to demand repayment of the funds paid to you in error. And you have no right to keep it.

But, curious, lets reverse the roles. Lets say that YOU overpaid the bank. And 3 1/2 months later, you realized your mistake. Would you tell them.... "Aw, heck, just keep it!". I don't think so. And what would you say if they told you.... "Sorry, but we have already spent your money..... how about we just make payments to you?". Of course, you could agree and let them make the payments, but I would bet that you are more likely to insist that they pay you NOW. Right??

 

[mikkey5]

If the bank sent you a release from all claims with the check, then the bank screwed up and you culd keep the money.

Its all in what the bank letter says.

So let us know if the bank letter said anything to the effect the lease has been terminated and we are issuing a check, that is due you.

Of course if you threw out the letter, then you would have NO PROOF they intended to give you the money.

 

[catlem]

And if you already spent the money after being assured it's yours? Then what?

The bank did issue a check saying the lease has been terminated. I'll take some time this weekend to see if I have it in my papers

 

[JETX]

Ignore Sickey5. He is a forum troll with no legal experience or knowledge. He is a welfare bum living in NY and holds the record for getting kicked off this forum. In fact, I think he will get to add another to his long list.

For example, the bank will NOT say that the check is unconditionally yours. Second, they have a LEGAL right to recover the overpayment. If you don't take care of this with them, they can take legal action against you and it will only cost you more. Call the bank and negotiate a repayment then pay it.

And how about the 'reversed roles'?? Haven't seen your response to it yet.

 

[catlem]

The reversed role is a silly analogy. If I ever made a mistake of that magnitude I would address it immediately. Remember I called and questioned the refund. Shouldn't that have been a red flag for them to check into my account further? I wasn't sure because I allowed my car dealer to handle the details of the lease terminaltion. When I received the refund and confirmed it was mine with the bank I assumed the car dealer took too much money from my down payment and put it toward the lease.

I'm having serious doubts about Chase (the bank I'm referring to). I recently opened a zero percent charge account with them. The second bill I received had a finance charge. When I called them they said it was a mistake and would be corrected next month. If Chase made TWO mistakes on the only TWO accounts I had with them what is there error percent in general? Scarey thought, don't you think?

I'll never have any dealings with them again. I intend to close the charge account I just opened.

FYI, I would like to add that I'm an honest person. Probably one of the most honest you've ever met. In the end, I know I'll wind up paying the money back but it will be a struggle since I really have spent it. Now I will have an additional monthly bill thanks to their mistake. By the way, I live in NY also and am not homeless or on welfare.
Thank you,