What is a former employer’s responsablility to show proof of overpayment if its trying to collect from an ex-employee?here?

Get Legal Help Today

secured lock Secured with SHA-256 Encryption

What is a former employer’s responsablility to show proof of overpayment if its trying to collect from an ex-employee?here?

My wife worked for a large multinational bank last year where we lived in IA. In August she quit and we moved back to NE. After quitting, the bank contacted us through mail stating that she had been overpaid a total of 69.02 hours totalling $662.20. A fact which I dispute. She received her last check and I don’t know where the overpayment was, they haven’t provided us with any proof that she was overpaid. Is this legal for them to recoup this money from us, especially being that they have shown no proof that she was overpaid? This is about to go to collections. We are a very low income family and an amount like this can mean the difference from having a roof over our heads to being homeless.

Asked on December 6, 2010 under Employment Labor Law, Iowa

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

I am so sorry for your situation.  Yes indeed the employer has to prove his damages - the overpayment.  If he sued you in court he would need the proof so you have every right to request that as well.  So send him a letter by certified mail return receipt requsted for an accounting the alleged debt with dates, times and a showing of the miscalculation.  Now, I do not condone letting it get to the process of collection but there is a a "weapon" so to speak that can be used as against the debt collection agencies that can prove effective in getting the matter resolved.  It is known as debt validation under federal law.  The debt collector must prove the following:

That the company owns the debt/or has been assigned the debt.  This is basic contract law. It is very difficult to get a judgment without a direct contract between collection agency and the original creditor.

At a minimum, some account statements from the original creditor. If you really want to get sticky, you can pin them down on the amount of the debt by requiring complete payment history, starting with the original creditor. This includes calculation of the debt and fees.  There is law on this.

Good luck to you. 


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption