My former job keeps sending my direct deposit payroll after I quit 6 weeks ago. Just noticed.?

Question

While I know that the ethical thing to do is to return the money and let them know... I noticed the error when I was opening a new bank account and transfered the money in there. I realize I should check balances more often but really did not notice it until I was moving funds. However-- while I will most likely let them know-- wondering what possible problems are if I cannot return all up front as I see that I used a portion that would affect rent, bills, christmas season, etc if I had to move it back now. Wondering-- these kinds of things have payment plans OR what about just keeping it as the old account is closed now anyways and I need no references from them. I informed them verbally and in writing at my time of departure and-- what's weird-- is that they sent me the smaller holiday/vacation time check and, apparently, kept on sending me payroll.

Even though it is ethical to return it all-- as the monopoly card reads-- are there "bank errors in people's favor?".

Answer 1

So by not noticing, you were spending money you did not have? How were you going to pay rent, bills, shopping and stuff if the money was not there??!! You had to have known. And now you have to pay it back. They will find out.

Answer 2

Well, first of all, commenting that you have acknowledged the fact of ethics and morality, that is great. If you have proof of your agreed termination with your job, other than not being there anymore, such as a employment termination paper or such, you can validate that you elected not to continue actively on the payroll. Unless they owed you money, if per say, you were on a contract and your salary was pro-rated, then they are basically giving you dividends of which further money you are owed, or it could be fringe benefit payout. If you know that they do not owe you money, well, first of all, this is their mistake, not the banking institution. I would return what portion is left as an honest attempt and effort of morality. Basically, it is not a good issue that you spent some of the money, however, like you had said, it was mistakenly spent and that is not your fault. I would simply return what is left of the misgranted funds, because that in itself is honest and is the right thing to do. There really is not much that they can do about the money that has already been mistakenly spent, besides making this a legality issue, in which I would advise that it was their mistake, rendering their problem. This is NOT classified as pecuniary gain, which is theft, so you have no legal issue present. You could possibly over time save enough money to repay the rest of the funds in which you did spend. Like anything else, you can be free from guilt and have a clear conscience, but moreso, have a stronger character in which other people could learn from!

Answer 3

Everyone makes mistakes...contacting them and explaining that you just noticed and making arrangements to get it back to them including that which was used will at least show them you didn't ignore this intentionally. They'll probably be quite thankful to get the majority of it back right away...the remainder only a real ogre would not try to work with you on making a suitable repayment plan

Good luck...remember Karma...you decide to keep and it could bite you more severely than you'd like. There are bank errors in peoples favors yes, but I don't think this can be classed as such.

Answer 4

Tell your boss you just haven't decided what you're doing yet (as you are worried about being able to afford quitting it's the truth.) And go ahead and fill out the HR paperwork, it isn't a commitment that you're going to stay, it's more of a just in case. You don't know what you want for sure yet, and four weeks notice is more than generous.

Answer 5

Return the money or at least notify them of the error. As nice as it would be to keep, they will eventually realize their error and come after you for the amount in question, and if they don't get it back will probably file some sort of law suit. It would be in your best interest to address the issue and have it resolved.

Answer 6

it's there screw up... don't do anything with the money. Just sit it in the bank and draw interest on it. If they find out about it and want it back. Then they will have to go through the process of getting it back. If they end up successful then you can give them back the initial moneys minus your new earned interest.
Good luck

Answer 7

You can count on them suing you to recover the money unless you take steps to return it. Your big problem will be for your 2006 taxes -- they may send the IRS a report that lists you income as higher than you think it is because of this money.

Answer 8

You aare NOT required to give the money back.
Your ex-company is at fault and can ask for the money back. They may even send you nasty letters, but pay them no attention if you wish to keep the money.

Essentially a check or direct deposit is a form of contract, and if your ex-employer cannot figure out that you no longer work there, well that's his/her problem, especially as you informed his/her by letter.

Now is it ethical to keep it. . .?

I worked on payroll systems for large corporations and I was constantly amazed at how many payroll departments would continue paying people who no longer worked for them.

Answer 9

The best idea is definitely calling your work and letting them know what is happening. If you don't tell them about it, you can get in a heap of trouble. This is just like if your regular check every week was $3,500 and you got $35,000 you should definitely report it, or else you'll get in a huge amount of trouble if you're caught, it isn't worth it.

Answer 10

Why can't these things ever happen to me???

Anyway, they will notice it --probably by the end of January when they are completing all their tax stuff. So plan on paying it back--and MAKE sure they don't demand more than what they gave you.