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laraivory · Jul 13, 2008, 03:53 AM

A large sum of money was put into my bank account about 8 months ago. I contacted the people who put it there and they asked me to write a cheque which I did. The cheque was never cashed so I cancelled it and sent another one which has never been cashed. I haven't touched the money but its in my account sent to me in my name. Can I keep it?

tickle · Jul 13, 2008, 05:07 AM

Did you ask why they put it there ?

laraivory · Jul 13, 2008, 08:43 AM

The money is from Social Services. I am disabled and they paid money into my account to employ someone to help me, which I did but there is money left over from that. Its all above board and legit, but when I stopped using the service I contacted them to find out how to send the money back and they told me to send a cheque.

George_1950 · Jul 13, 2008, 08:50 AM

You need to look into the guidelines, policies, procedures, and law before making a claim to government funds. I don't believe the funds would come under lost or abandoned property considerations; more than likely, the gov't can review and audit recipients of funds for some number of years and require you to prove how they were used. Look at the program guidelines and see if there is an answer as to how long the gov't can look back and audit funds.

tickle · Jul 13, 2008, 08:54 AM

George l950, where did it say laraivory got the money under lost or abandoned property. She is saying she is disabled and received the money to hire someone to help her, she did, and money is left over.

tickle · Jul 13, 2008, 08:56 AM

laraivory, could be you fell through the cracks with this one. I would contact them again and see what they want you to do, but this time get a name and extension number to prove that you did call. You probably would like to get an affimative on how to deal with the overage, but you say you hired someone, wouldn't that be ongoing and you would still need money to pay them ?

laraivory · Jul 13, 2008, 09:07 AM

Hey Tickle

I am able to cope on my own for now, I contacted social services to tell them that I no longer required the financial support and to stop the payments, which they did. I spoke to them a number of times about it and each time I was told to send a cheque, which has never been cashed. I thought it would happen at the end of the financial year (March) when businesses do an annual audit but its never happened. Its taking a lot of will power on my part as the money would clear a lot of debt I have outstanding.

George_1950 · Jul 13, 2008, 09:13 AM

Originally Posted by tickle

george l950, where did it say laraivory got the money under lost or abandoned property. She is saying she is disabled and received the money to hire someone to help her, she did, and money is left over.

Let's review the relevant part of her question: "A large sum of money was put into my bank account ... I contacted the people who put it there and they asked me to write a cheque which I did. The cheque was never cashed so I cancelled it and sent another one which has never been cashed...Can I keep it?"
The money was given for a purpose which has not been completed. It was not given to Lara for personal use, so she is asking whether she can keep it. Let's say A gives B $50 to purchase groceries, and B spends $45, and keeps $5 for himself. What would you call that? Lara should separate these funds from her account and notify her bank not to honor any demand from the gov't for reimbursement; place the funds in an interest bearing account, and when the govt decides it wants the funds returned, do so but keep the interest. In my view, she can't keep the funds until they can be determined either lost or abandoned.

laraivory · Jul 13, 2008, 09:23 AM

Hey George

I have placed the money in a high interest account and plan to keep the interest. I just wasn't sure if there is a law that states that when money is left to you for a certain amount of time without any claim on it after attempts to repay the money, does it become my money.

excon · Jul 13, 2008, 09:31 AM

Hello l:

It'll NEVER become your money. I know you've tried to get them to take it back. But, I can tell you this, as soon as you start spending it, they're going to want it back, and if you don't have it, they'll charge you with a crime.

I would BUY a cashiers check for the entire amount and send it to those people by registered mail, return receipt requested, and BE DONE WITH IT.

excon

George_1950 · Jul 13, 2008, 10:48 AM

Originally Posted by laraivory

Hey George

I have placed the money in a high interest account and plan to keep the interest. I just wasn't sure if there is a law that states that when money is left to you for a certain amount of time without any claim on it after attempts to repay the money, does it become my money.

Good for you on depositing the money and keeping the interest. You will have to dig into the policies, procedures, guidelines, and law to see what the audit and/or lookback period is. excon's point is good: there may not be a statutory period for these funds to become abandoned because you are, in effect, a fiduciary in charge of an implied trust, and may be held accountable as such in perpetuity. But me - I would do what you have done, but make certain your bank will not honor a demand by the govt for return of the money, leaving you 'high and dry' with dishonored checks everywhere.

laraivory · Jul 13, 2008, 11:04 AM

I have written a total of 4 cheques to the people who initiated the funds and have cancelled 3 of them. excon is right, sod's law says as soon as I dip into it for emergancies the 1 remaining cheque will be cashed! I'll just leave it all where it is and let it make money for me. I'll be honest and say I have dipped into it, but have paid it back.

slowandeasy · Jul 13, 2008, 11:32 AM

laraivory
Excon is 100% right! It will never be your money and at some point and time someone will notice it and you will get a call or letter wanting that money back! Send it back registered asap!

joypulv · Sep 28, 2010, 02:21 PM

I disagree about buying a cashier's check that will go into limbo and never be cashed. What's happening is their huge bureaucratic system can't handle the refund, despite one person saying send it back. Keep it earning interest as you are doing for at least 3 years. Yes, SS does go after people for overpaid amounts years later, and you can appeal on the grounds that it's been 'too long' but you need a good lawyer to argue what is too long. They are always overpaying people.