Step-by-step
Document the overpayment
Gather bank statements showing both payments, or evidence of the correct amount versus what you paid.
Request refund promptly
Contact the recipient in writing, explain the error, and request a refund with specific reference numbers.
Escalate if refused
If they refuse or ignore you, send a formal letter before claim. For bank errors, use the bank complaint process first.
File your claim
File via Money Claim Online for the overpaid amount. Claim is based on unjust enrichment.
Recovering Overpayments
If you pay someone more than you owe, or pay by mistake, they must return the excess. Keeping money they know is not theirs is called "unjust enrichment".
Common scenarios:
- Overpaid or paid twice - refund denied
- Bank error not corrected
- Wrong account payment disputes
- Accidental subscription charges
Legal principle:
Anyone who receives money they are not entitled to must return it. This applies regardless of why the overpayment happened.
Evidence You Need
Essential evidence:
- Bank statements showing the payment(s)
- Payment confirmations or references
- Evidence of correct amount (invoice, contract)
- Correspondence requesting refund
Helpful evidence:
- Transaction references for tracking
- Account details showing where money went
- Any acknowledgment from recipient
- Your bank's investigation results
Tips:
- Report errors to your bank immediately
- Get transaction references for all payments
- Keep all communications about the refund request
What You Can Claim
Typical claim value: £10 - £10,000
You can claim:
- The overpaid or duplicate amount
- Interest from date you requested refund
- Bank charges caused by the error (if applicable)
Bank recovery:
If money went to the wrong account, your bank may be able to recover it directly through the "misdirected payments" process. This is faster than court.
Types of Overpayment
Duplicate payments:
You paid the same invoice twice. Evidence: two transactions for identical amounts around the same date.
Wrong amount:
You paid more than the invoice/contract amount. Evidence: compare invoice to payment.
Wrong recipient:
Money went to wrong account. Your bank can help trace and recover this. You may need to claim against the person who received it.
Refund not processed:
You returned goods but refund never came. Evidence: return proof plus bank statement showing no refund.
Frequently asked questions
What if they spent the money?
They still owe you. Having spent money you were not entitled to is not a defence. However, enforcement may be harder if they have no funds. The debt remains until paid.
How long do I have to claim an overpayment back?
Six years from when the overpayment was made. However, claim promptly - delay can complicate matters and may affect enforcement options.
What if I paid the wrong person by mistake?
Contact your bank immediately - they have processes for recovering misdirected payments. The recipient should not spend money they know is not theirs. If the bank cannot recover it, you can claim against the recipient.
Can my bank help recover the money?
Yes. Banks have procedures for recovering mistaken payments. Report it immediately. They can contact the receiving bank and request the funds be returned. Success depends on whether the recipient still has the money.
What if they refuse because they say I owed them more?
If they claim you owed a larger debt, they need to prove it. Request evidence of what they say you owed. If they cannot prove the additional debt, you are entitled to your overpayment back.
This guide provides general information about UK small claims court procedures and is for educational purposes only. It does not constitute legal advice. CourtPilot is not a law firm and is not regulated by the Solicitors Regulation Authority. The law may have changed since this guide was last updated. For advice specific to your situation, please consult a qualified solicitor or seek help from Citizens Advice.