I had called to make sure it wasn't a mistake before cashing it. They said they had made a mistake, that the check was accidently applied to my account and so they had sent the check to me and now they want their money back. And within a month because I couldn't pay it back they sent it to collections and were threatening my credit ratings. I had believed it was an over payment for the final month I had with them and just wanted to make sure that everything was correct before cashing the check. I thought it was just taking them awhile to close my account. But a month or so later they realized they made an error and demanded their money back immediately. They were willing to make a payment arrangement but they were the ones that made the error not me. It just doesn't seem right that they can do that to us.
2007-01-11 03:24:55 · 4 answers · asked by houtex9 1 in Business & Finance ➔ Insurance
Unfortunately, they can do this and report it to your credit. If it hasn't been 30 days contact the collections company and tell them you are disputing the validity of Allstate's claim. They can not put it on your credit until all verification has been done. This will give you time to research your account and compare with your payments. If you determine that they are correct, make payment arrangements with Allstate - NOT the collections company because this will go on your credit report. If you determine that you were entitled to the refund send your proof to the collection agency.
2007-01-11 03:31:39 · answer #1 · answered by Melli 6 · 0⤊ 0⤋
Ah. So if the error went in the other direction - they applied your check to the wrong account - that other poor guy should be SOL?
This is a moral question - and you are morally wrong in this situation. It's not your money. You probably knew that when you cashed the check, or at least had a pretty good feeling, that it really wasn't yours.
Do the right thing.
2007-01-11 11:33:19 · answer #2 · answered by Anonymous 7 · 2⤊ 0⤋
What if it wasn't a big insurance company? What if it was your friend's small business that made that mistake? What it boils down to is it is not your money. By refusing to give it back you are in a way stealing. You received a service and should pay for it.
2007-01-11 13:55:33 · answer #3 · answered by mamatohaley+1 4 · 1⤊ 0⤋
If they were willing to make payment arrangements... you should have taken it. They made a mistake they are only human. Your best bet is to pay it back ASAP
2007-01-11 11:31:28 · answer #4 · answered by Sara 4 · 0⤊ 1⤋