Employer Direct Deposited to Wrong Closed bank account

[ImyourTA]

What is the name of your state (only U.S. law)? Texas
You

I did some commission only work for a company that I used to be a salaried employee of 7 years ago. When I came back onboard with them in May 2017, I provided my current bank information for them to direct deposit my commission payments to. 2 weeks ago they mistakenly direct deposited my commission into my old bank account that has been closed for 7 years. The bank showed that I had a balance due in that account so they kept the money. The company sent me a paper check via ups and I cashed it. Now another one of the owners is telling me that I need to pay the money back.

 

[Just Blue]

What is the name of your state (only U.S. law)? Texas
You

I did some commission only work for a company that I used to be a salaried employee of 7 years ago. When I came back onboard with them in May 2017, I provided my current bank information for them to direct deposit my commission payments to. 2 weeks ago they mistakenly direct deposited my commission into my old bank account that has been closed for 7 years. The bank showed that I had a balance due in that account so they kept the money. The company sent me a paper check via ups and I cashed it. Now another one of the owners is telling me that I need to pay the money back.

Good news!! You paid off some of the past due on a overdrawn acct. Bad news...You need to pay back your employer .

 

[ImyourTA]

I used the money to pay for some expensive heart medications because I had a heart attack. I no longer have this money and cannot work due to my health. If I can't get them to allow me to make payments to them or give me some time to pay it back, can they have me arrested?

 

[LdiJ]

What is the name of your state (only U.S. law)? Texas
You

I did some commission only work for a company that I used to be a salaried employee of 7 years ago. When I came back onboard with them in May 2017, I provided my current bank information for them to direct deposit my commission payments to. 2 weeks ago they mistakenly direct deposited my commission into my old bank account that has been closed for 7 years. The bank showed that I had a balance due in that account so they kept the money. The company sent me a paper check via ups and I cashed it. Now another one of the owners is telling me that I need to pay the money back.

That is an interesting set of facts.

First, one could argue that the company is 100% liable because they deposited money into an account that they were not authorized to deposit money into. However, in that circumstance normally they would have at least some possibility of recouping that money by taking it back before the actual account holder spent it...and if the actual account holder spent it they would have some legal recourse, even potentially criminal recourse against that account holder.

It appears however, that the bank is taking the position that it used to be your account number, money got deposited into that account, and you owed money, therefore the money was fair game for them to seize. All kinds of things could be argued in that instance, including statue of limitations.

Then, it appears that the company replaced that money to you via check, due to their mistake, but apparently they want the other money back even if they have to get it from you. While they might not be in the right on that I suspect that if you do not replay them, they will take away your contract and there may be some loophole in the contract that allows them to do so.

You really need to take all of the paperwork that you have and get a consult with a local attorney. There is no easy answer on this one.

 

[cbg]

I cannot even imagine a set of circumstances under which the OP does not owe the money back. He has been paid twice; once by the mistaken direct deposit, and then by a paper check making the correction. Please show me any law under which the OP is entitled to be paid twice as long as it's the employer's fault. I'll wait. But I won't hold my breath.

The term, undue enrichment, comes to mind.

 

[ImyourTA]

The company was provided with the correct bank account information. I have the email dated in May of last year that I sent to the payroll dept with the bank routing number and account number, and the reply email from the payroll manager stating she received the information and all was well with it.
The company for some reason dug into the computer to get my old closed bank acct information that they had no authorization from me to post any payments to and direct deposited this money.
When they were told by me that I didn't have the payment in my current bank, they discovered that they made an error in the processing of that direct deposit.
They then sent me a check for the same amount, marked "REFUND" in the memo area. Which was odd. Because this was commission. I cashed that check and spent the money. Now, a week later, another owner wants the money back.
I don't have a problem giving it back when I can,...but I don't want to be arrested in the process. Is this a civil matter or a criminal matter?
I'm so stressed out and my cardiologist told me to avoid stress.

 

[Just Blue]

I cannot even imagine a set of circumstances under which the OP does not owe the money back. He has been paid twice; once by the mistaken direct deposit, and then by a paper check making the correction. Please show me any law under which the OP is entitled to be paid twice as long as it's the employer's fault. I'll wait. But I won't hold my breath.

The term, undue enrichment, comes to mind.

^^love^^

**************.....

 

[cbg]

This would be a civil matter. You're not going to be arrested and you're not going to go to jail. It is, however, possible that you might be sued. I would talk to the employer and see what kind of payment plan you can set up with them.

 

[ImyourTA]

The reason I mentioned the 'jail' comment was because of LdiJ mentioning "criminal recourse against the account holder" in their reply.

 

[justalayman]

The company was provided with the correct bank account information. I have the email dated in May of last year that I sent to the payroll dept with the bank routing number and account number, and the reply email from the payroll manager stating she received the information and all was well with it.
The company for some reason dug into the computer to get my old closed bank acct information that they had no authorization from me to post any payments to and direct deposited this money.
When they were told by me that I didn't have the payment in my current bank, they discovered that they made an error in the processing of that direct deposit.
They then sent me a check for the same amount, marked "REFUND" in the memo area. Which was odd. Because this was commission. I cashed that check and spent the money. Now, a week later, another owner wants the money back.
I don't have a problem giving it back when I can,...but I don't want to be arrested in the process. Is this a civil matter or a criminal matter?
I'm so stressed out and my cardiologist told me to avoid stress.

You owe the employer the money. You benefitted from the mistaken deposit as it paid down your debt. That is a benefit to you regardless of whether it was what you intended to do with the money or not.

Any argument you have wouldnbe with the bank that retained the money but obviously you will lose there since you did in fact owe them money.

As to whether this is civil or criminal. At the moment it appears to be in the civil realm. There was no intent to defraud the bank or intentionally obtain a double payment, at least by your statements. I doubt it could end up in the criminal realm but no promises by me on that. I’ve seen stranger things happen.

 

[ImyourTA]

I never once stated that I don't owe the money. I just said that I will need time to pay it and hopefully they will allow it, since they made the mistake. I only signed one check. And I didn't intentionally make them pay my debt. So even though I have a past due amount on my old account, im not a criminal. I will pay the money back to them.

 

[HRZ]

I am not so sure that you owe it back as the rules are written ....the Tex Labor Code at 61.017 imposes a mandatory duty on the employer to deposit it as directed by the employee into a valid account maintained by employee . I am reading OP in context that his prior employment ended , his prior account was closed ..and that a new relationship was formed and he sent them the correct new account information as required by law and employer conformed receipt of same. Plus I doubt a closed account meets the definition of an account you maintain.

if the employer sent it to the wrong place that does not constitute delivery of the wage as defined. let employer sort out the steps to recover it from bank? .Its a civil matter not a criminal matter as I see it l

look, I agree you have no right to expect payment twice for same work...but I think the employer would be wise to agree to such a repayment schedule as you can meet

if this was an ordinary overpayment of wages delivered to employee. the steps for employer to recover same are sort of straight forward ....but as posted the employer did not get the initial payment right

 

[cbg]

I am not so sure that you owe it back as the rules are written

Well, I am. The OP is not entitled to double pay, no matter where the money was deposited. And since you have a long history of making up facts that don't exist, I would strongly advise the OP not to take your surmises for gospel.

 

[ImyourTA]

I will offer to pay the money back as soon as I can after my heart cath and other medical treatments. As I stated, I know that I'm morally not entitled to being paid twice. And I plan to pay back the money. I'm not able to work at the moment and I spent the money on some insanely expensive heart prescriptions. Try pricing Ranexa with no medical insurance. If I had known this happened I wouldn't have spent the money and just has to do without the medications. But I didn't know. I'm so stressed about this that I'm having chest pains. Thank you all for your advice.

 

[Shadowbunny]

I will offer to pay the money back as soon as I can after my heart cath and other medical treatments. As I stated, I know that I'm morally not entitled to being paid twice. And I plan to pay back the money. I'm not able to work at the moment and I spent the money on some insanely expensive heart prescriptions. Try pricing Ranexa with no medical insurance. If I had known this happened I wouldn't have spent the money and just has to do without the medications. But I didn't know. I'm so stressed about this that I'm having chest pains. Thank you all for your advice.

Check out the Patient Assistance Program for Ranexa -- they have programs for people without insurance.

https://www.ranexa.com/savings-and-support/ranexa-connect