I have been overpaid 7 weeks' salary by my former employer (apparently HR failed to notify payroll for two months that I had left). That was six months ago. I did not respond to their initial letter requesting repayment and now I have received a solicitor's letter threatening court action if I do not repay immediately. Meanwhile, following redundancy from the new job that I went to, and then a short spell of unemployment, I have taken a low paid job and am no longer in a position to repay this overpayment in full, or even in part, right away. Assuming that I need to repay this sum is there a recognized independent arbitration service that could set a realistic monthly repayment? I'm not objecting to repaying this money but currently am severely stretched.

It is just standard procedure to ask and demand full payment, then you contact them and ask or set up a payment plan

In fact had you merely been sending them some money for the past 7 months instead of ingoring them, you would not be owing them near as much and most likely they would be OK.

OK. Thank you.

Were you aware you were overpaid? How long ago was the initial letter?

You should never have ignored the initial letter. By doing so you got yourself into this position.

As Chuck said, you now try to negotiate a payment plan with them and hope they are reasonable.