If a former employer direct deposits a check into your account and you spend it what can happen?

Question

I had a former employer deposit a check into my account incorrectly. It took them a couple of weeks to contact me about it. I haven't spent all off the money, but I have used some of it. Has anyone ever been in this situation? What happened? What can they do? I know this is an issue of ethics, but it was about $1300. They are a huge corp. who would never know the difference and that kind of money makes a big difference in my world. Help!!

Answer 1

They will debit your account for the whole check. So if you don't have enough left in your account, then your account will become overdrawn. You are responsible for paying it back, so you might as well get ready for it.

Answer 2

This actually happened to me and I did not notice it until I had already spent the money. 1 year later the company realized their mistake and called me demanding the entire sum right then. I told them that I did not have it at that time and offered to make payments. They said they would call back. A few days later I got a letter from a collection agency. Of course that goes on your credit report. I ended up paying it back and then fought to get it off my credit report. My suggestion to you is to just give it back now, before it gets to far.

Answer 3

It's not your money. You KNEW you weren't entitled to it, didn't you? Even though they made the mistake, you are probably legally obligated to give it back. If they sue you, you will probably lose. Try to work out a repayment arrangement if you cannot manage to give the full amount back all at once.

Answer 4

your loss. you knew it was a mistake,you should have told them befor you spent it.

Answer 5

they put it in your account. their loss, lol..