How to recover money you're owed

It's incredibly frustrating when someone owes you money, and you have to struggle to get paid back. There are many reasons you might be owed some cash, and your response to each situation will largely depend on who owes you, how much, and how far you're going to have to take it. The good news is that being owed money doesn't have to mean that your cash has gone forever. With a little research and a willingness to be patient, any money that you think you're owed could be heading to your bank account much sooner than you expected. Let's take a look at the most common reasons for being owed money and what you can do to recover what you're owed.

Money From an Employer

One of the most common reasons to be owed money, employers failing to pay the right amount when you've left, can be a huge strain on your finances. While there are steps that you can take, the problem is that you have to act as quickly as possible. If you leave it for more than three months, then there's a chance you'll never get back whatever salary amount you should have been paid. It's not just your salary either. An employer is obligated to pay you additional funds that cover your holiday pay, sick pay, any redundancy money that's been offered, as well as any maternity/paternity pay (or shared parental leave pay). Even if you've been sacked, those payments are legally required. Always check your payslips, and talk to your employer first if you think there's a discrepancy. Failing that, follow the employer's grievance procedure, or contact your union rep if needed. If these fail, then you will need to get legal advice.

Rent Deposits From Your Landlord

In the UK, any deposit that you pay to a landlord or homeowner needs to be put into a rent deposit scheme. Legally, you must get confirmation that your deposit has been put into that scheme. Of course, if you have left the property in a much worse condition than when you moved in, you may lose all or part of that deposit. However, if you believe that you have moved out of the home and left in the same (or better) condition, you are entitled to that deposit. Landlords cannot deny you your deposit for normal 'wear and tear' such as paintwork or the replacement of a worn carpet. If your landlord is withholding your deposit, you need to get a written statement why. Often, the threat of legal action will be enough to convince dodgy landlords to return what you're owed. If they haven't paid your deposit into a rent deposit scheme, then you can get a much larger pay-out, often up to three times the cost of the initial deposit.

Mis-Sold Pensions

Another common issue with money being owed is when a customer is convinced to put money into a pension that has been mis-sold. This can mean any form of misrepresentation about the pension, including false claims about the advantages of that pension over any existing one you pay into. Any promises of lump-sum payments delivered on early retirement are also an indication that you may have been mis-sold a pension. This can be very difficult to recover without legal advice, but you do have plenty of options available to you. Look for Mis Sold Pension Compensation experts who know which pension firms are already in the firing line or who can investigate your concerns. Most of these experts will offer a no-win-no-fee service so that you're not at risk of losing any more of your hard-earned money.

A Friend or Family Member

This can be a very difficult situation. People borrow money from their friends or family because it's usually a much easier alternative to other high-interest options. The problem is that if they then find that they are unable to pay, you're left in a very awkward position. Putting strain on a close relationship is never fun, but there are steps that you should follow that may make it easier. Start with gentle reminders. Don't go in all-guns-blazing because people with financial problems are often already feeling stressed, and you will not be helping matters (and may even make it more unlikely that you'll get your money back). Offer to help them with the budget management or suggest a payment plan that will not leave them struggling to pay what they owe. Whatever you do, don't start adding interest, letting other people know about the situation, or threatening them. This will simply make it less likely that you will ever get back what was borrowed.

Overpayments From Energy Suppliers

If you move home, your existing energy supplier has to refund whatever money you've paid in advance on that property. Moving house means that your account with that supplier will be closed, and any excess payments are yours. However, it's very common to find that some energy suppliers will withhold that refund, and most will rarely let you know if you are owed money. Always check with your energy supplier, either via phone call or their website and have all of your account details to hand. They may even owe you interest that the supplier has earned since the account was closed, and all repayments must be made within six weeks of your request for the refund. If they fail to do so, contact the energy ombudsman. These independent organisations will take 6-8 weeks to determine what you are owed, and the energy supply then has just 28-days to pay you.

Being owed money, especially when your own budget is particularly tight, is frustrating and often very stressful. The important thing is to make sure that you have a clear idea of what you're owed. Always contact the person or organisation that you believe owes you money, and try to find a solution that isn't going to cause additional stress. If you find yourself in a situation where you know you're owed money and the person that owes it has no intention of paying it back, always get legal advice.