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#1
10-19-2007, 08:54 PM
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Debt Collection....Kind of?What is the name of your state? Illinois My mother-in-law cashed out a retirement account approximately a year ago. Apparently when cashing out the account, the financial institution paid her twice. The balance cashed out was roughly $10K, and the institution paid her $20K... My mother-in-law is a senior citizen on a fixed income. Not realizing that she had been overpaid, the money went into another account and was used over the year for living expenses, etc. After the year, the institution discovers their error, and are now demanding the overpayment back, and forwarding the matter to their legal team... I will be contacting the legal team next week, to discuss the issue... Obviously, the money needs to be paid back, but as my m-i-l doesn't have much money it will have to be in some sort of installments. As it was the institution who basically handed my mother-in-law an extra $10K and said 'Have a nice day', do they have the ability to dictate the terms of repayment? This wasn't a loan, and nothing was agreed to ahead of time...it was basically their screw-up that caused this problem. Does my m-i-l have any rights w/ regard to this situation, or is she basically at the mercy of the institution at this point? Any advice would be greatly appreciated. |
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#2
10-19-2007, 09:44 PM
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| Yes, they do. They are allowed to correct their mistake. And your mother was responsible for knowing how much money was in her account.
__________________ My new signature: Originally Posted by arazi Quote:
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#3
10-20-2007, 11:28 AM
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| If they made a mistake, I know they have the right to get the money back. My question is: what will happen if this lady no longer has the money and she is living on only a fixed income? I'm assuming social security. If that money is exempt and the monies they overpaid her are gone, what can they do to recover their loss? |
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#4
10-20-2007, 01:39 PM
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| Let them know that their only income is Social Security. This means it cannot be garnished easily. If there is no assets, and the money has been spent, try to work with them and discuss a payment plan that the person can afford. They could sue and get a judgement, too to secure the payback. |
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#5
10-21-2007, 09:49 AM
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| I find this an interesting thread. If they did sue and get a judgement, what good would it do if the woman does not have assets, is on a fixed income and the income is exempt from creditors? It would appear to me that she is considered "judgement proof". I may be wrong on this. In a case like this, would it be considered a criminal act to spend money you received by mistake? |
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#6
10-21-2007, 09:50 AM
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| Maybe, she'll win the lottery, and thus will be able to pay.
__________________ My new signature: Originally Posted by arazi Quote:
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#7
10-21-2007, 11:01 AM
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| I was asking a legitimate question -- I really wasn't expecting some answer like "Maybe she'll win the lottery". I just wanted an answer to my question. I never heard of a situation like this, and was curious about what could be done. wouldn't it be nice if we all could win the lottery, but that's not an answer. |
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#8
10-21-2007, 12:49 PM
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| I doubt that she defraud the company to get the extra money. The mistake was done by the company. Doesn't seem like it would be a criminal act at all. Just a blunder done by a company. How embarrassed do you think they are. Especially since they might not recover this 10K mistake. |
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#9
10-23-2007, 01:11 PM
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| Just a quick update.... my wife actually spoke with the senior legal assistant listed on the letter that her mother received. She was told that the company wants their money back. When my wife asked what they were willing to do in terms of a payment plan, they asked her to discuss with her mother, and then get back to them with a number that would work for her. The fact that they're not pushing harder kind of says that they might be willing to take anything they can get. Perhaps it's cynical, but I think it's unlikely that they're just being 'good guys'. |
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#10
10-23-2007, 05:02 PM
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| Maybe because they realized that they had made a mistake. also, your mother didnt commit any fraud in getting it either. so, while they would have to go to court and admit that they accidentally sent extra money to someone who did not realize it and spent it, they might also not be able to recover any of it back. if they had done it to me, I would be thanking them for the early christmas bonus...lol |
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#11
10-23-2007, 11:05 PM
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| 40 years ago I worked for a finance company in Oklahome City. One of my jobs was to collect bad debts. We had one old man (I'm now his age) who had been a very good customer for 10 years! We had made a lot of money off of him. One day he just stoppped paying! We send him the usual letters, starting off with the 'you forgot' letter to "we will take legal action if you do not pay". He refused to pay! I called him up and asked him why he did not pay as he had been a very good customer and his not paying would go on his credit report. He answered - 'I don't have to pay and you can't make me!' He was right! He did not have a job, he did not have a checking account, he did not have any real estate, and his only income was his Social Security (We couldn't touch it!). He had NOTHING we could attach - he was right - he did not have to pay! We CHARGED IT OFF! |
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#12
10-24-2007, 01:58 AM
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| Quote:
DC
__________________ Three books every person should read cover to cover at least once: The Richest Man in Babylon, The Complete Works of Shakespeare and the King James Bible. -- If you can't learn how to live a happy successful life from those books, you are beyond hope. Quote:
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#13
10-24-2007, 06:49 AM
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#14
10-24-2007, 08:17 AM
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It was previously explained to you just how that money can be gotten. As a matter of fact, I recently asked how someone's money, in that same situation, was TAKEN.
__________________ My new signature: Originally Posted by arazi Quote:
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#15
10-24-2007, 11:42 AM
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| I don't agree with debt collector's comment about someone not being good at their job. If the old gentleman had NO ASSETS, then please explain to me how debt collector can get anything from him. (unless, of course, he owns a dog) lol Anybody can sue you and if you owe the money, you owe the money. But, not everybody has the ability to pay the money back. Social security money is EXEMPT. If you don't want a creditor to try to get it, don't put it in the bank. The collector can freeze a bank account, but if there's no money in it, he's not getting anything. So I would appreciate somebody explaining how you collect on a debt if there is nothing there to collect. |
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