Lloyds bank overpayment handed to solicitors

[nic_r]

Hi CAG, thanks for taking the time to read this. I'll keep it snappy.

 

I recently worked for Lloyds bank but left on 20th June 2016 because I emigrated to Spain, where I now live. I had worked at Lloyds for 6 years.

 

This past weekend (29th October 16) I went back to my old UK address to pick up my post and discovered that at the end of July Lloyds sent a letter informing me they had erroneously paid me my 2015 deferred bonus, and a second letter dated 24th October, stating my 'debt' has been passed on to DrydensFairfax solicitors.

 

The bonus in question was £10k after tax, based on my 2015 performance. £2k was paid on March 20th with the remaining payable £8k on June 20th. The 2k march payment is not disputed, but they want the £8k back

 

I was aware of the deferral system and after discussions with my boss (who i had a great relationship with) delayed my resignation until March 20th, which we both thought was the cut of date, meaning I would mean i would pick up my full bonus on June 20th - my last day as I was on 3 months notice, which I did.

 

I have since checked the small print on one of my letters and it did indeed stipulate that if you are serving your notice period on 1st June 16 you are not entitled to the remainder of the 2015 bonus. So it appears me and my boss were indeed wrong about the date you needed to be not serving notice on to receive the second installment of the bonus, and lloyds made a mistake when they paid it to me.

 

From what I've read this seems to fit the criteria for Estoppel. Discussion with my manager led me to believe this money was mine if i resigned on March 20th, and I have since spent the money (and quote a bit more!) on emigration.

 

If i'm right, then I don't know how to put this in motion. I've not replied to anything yet. I have not had any calls or messages from DrydensFairfax directly, just 2 letters from Lloyds, with the second one asking me to contact drydens to payback the £8k

 

I don't really want to do nothing and risk a court order of black mark on my credit record

 

Thanks again for reading. Any help/advice/thoughts would be hugely appreciated

 

Nick

[fkofilee]

Hi Nick

 

Welcome to CAG... General thoughts are if you live abroad then there isn't much they can do.

Do you have any UK Assets? Plus it might be worth telling DF Solis that you are living abroad now with no plan to return to the UK.

[nic_r]

Hi,

 

I've got no assets in the UK and don't have any plans to return, but I don't particularly want to rule it out. The option of doing nothing has crossed my mind, but if i do happen to return to the UK in 5 years, I don't want to have a negative mark on my credit history.

 

Lloyds or Drydens have no idea I'm not at that address any more. But i did some Google research which implied they may be able to get a court order and impact my credit rating even without a response.

[fkofilee]

Hence why we say update your info.

I dont think this could be reported as a negative mark to your CRA because its not a loan etc

[ericsbrother]

bonus terms are a minefield and Employemnt Tribunals have decided that they are part of your terms of employment and must be paid if you were there at the qualifying time, which you were (ie end of 2015) and only bonus accrued during notice period wouldnt count. Unfortunately, although being at one such case as a witness I cant offer anything in the way of detail.

Getting a solicitor to ask you for it back is a long way from going to court to recover the monies so dont feel in a hurry to say anything. Try and find a similar case in the HMCTS library of test cases and interesting decisions, there is a long list on their web site arranged into subject and date lists.

[steampowered]

It could impact your credit history if a CCJ was obtained and then not paid. The CCJ would then stay on your credit history for 6 years.

 

I suppose you could try to raise an estoppel on the basis that you were told by your then boss that you would be paid the bonus, although not sure if you will manage to persuade them of that.

[nic_r]

Ok thanks all.

 

Today my ex manager contacted me on Facebook to let me know the solicitors had emailed him to ask if he could help them get hold of me. He asked me what I wanted him to tell them - I just said tell them I have emigrated which with any luck will deter them from continuing. Its a spot of luck actually because it relays the emigration message without them getting any contact details for me... even an email.

 

I'll let you know how it goes.

 

Nick