VIC Error in Distribution for Victorian Bushfires Damages - What to Do?

[Burnt Out]

I was burnt out in the 2009 Victorian Bushfires. I was part of a group to claim for damages. February 2015, I received the final distribution of settlement funds. I then had work done on the house and property and organised an overseas holiday. Six (6) weeks later I received a letter from the Solicitors stating "that there was an error in our calculation of the final distribution to you". They now want $17, 137.00 back as is it was paid to me in error.

I now do not have the money, am unemployed and still have a mortgage to pay as well. Do I have to pay it back? If so, can I pay it back in instalments on a regular basis without accruing interest?

 

[Tracy B]

Hi Burnt Out,

I would say it's likely they would agree to you repaying the amount in instalments given the high sum and that it was their error. Who made the error in calculations?

I am not sure whether you are obliged to pay, at law, in this situation. You are obliged to repay any overpayment in employment salary and ATO/government agency and banking situations. Even if the payment was their fault. Speak with a lawyer about this as this situation is quite unique. You can get connected to a lawyer here (as a starting point): Get Connected with the Right Lawyer for You - LawAnswers.com.au.