I was overpaid, do I have to repay?

[rh1]

I recently quit my job at a large corporation in Illinois to go to graduate school. I was overpaid over $700 in my last paycheck because my employer miscalculated the number of hours I worked my last week.

I didn't notice the overpayment at the time, but a few weeks after quitting I got a letter from my former employer stating that I owed them $700 and that if I didn't pay in 15 days they would use a collection agency to get the money back. Its been a couple weeks and I haven't heard from a collection agency yet.

Do I have to repay the money? If I don't, will this show up on my credit rating?

 

[JETX]

Yes, you have to repay the money. You cannot benefit from someone else's honest mistake (unjust benefit).

Here are some things that COULD happen:
1) If you deposited the overpaid amount KNOWING that it was not yours and with the intent to keep it (sound familiar so far??), you COULD be charged with criminal fraud.

2) If you don't return the 'unjust benefit', you could be forced to return MORE than you got. Let me explain. You have been asked to return the overpaid funds and have refused (so far). If the employer has to hire an attorney to contact you, you would be expected to reimburse for attorney costs. Further, if this were to go to court and you lose (likely), then you will be ordered to pay the judgment, PLUS attorney fees, PLUS court costs, PLUS interest until paid.

3) Finally, with a judgment, then the employer can file against your credit report and seize any and all of your assets as allowed by law to repay the judgment and costs (see #2).

Now, you decide what you want to do.....

 

[rh1]

thanks!

Thank you for the reply. I will follow your advice and repay.