Question


Eric

Insurance company accidentally gave me more money but I spent it. Do I have to give it back?

I recently had to deal with insurance claims because of a bad accident. I went through a few months of therapy and after everything was said and done I received a check from my lawyer saying this is my share of the money. State farm, the insurance company, also mailed a check to me in my name for the sum of 1000 dollars. After a few months, and having spent that money a long time ago, the accident clinic I went to said that the check was mistakenly given to me and was supposed to be for them and are demanding it back. They are threatening to go through collections. 2 questions. 1) Why is the insurance company sending the clinic extra money? I was shown that one check was mailed to the lawyer and it was divided in 3 ways, is this shady business going on? 2) Am I obligated to pay the money back? I don't have the money anymore, what are the possible repercussions? Thanks Let me add some extra details. The accident clinic was already paid 2300 dollars, which was the same amount the lawyer and I received. 6900 split three ways, as is standard. But an extra 1000 came from the insurance company in my name for some unknown reason, and the clinic says its theirs. Does this sound shady to any of you guys at all?

6 months ago - 11 answers

Best Answer

Chosen by Asker

~~You need to contact the attorney who handled your case. He should have paid off any liens prior to you receiving your settlement. He needs to sort it out and let you know whether this clinic was paid. He received a portion of your settlement, and this is part of the settlement problem. Take it to him and let him handle and let you know whether you owe i back or not.~~

by debijs

6 months ago

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Other Answers

pay it back or do the time in jail

by Edwina W- 6 months ago

If in fact, the check came in your name, you did not do anything illegal. If the check does not belong to you, the morally correct thing is to give them the money back. I would talk to your lawyer. He likely got paid and should be able to fix this.

by united9198- 6 months ago

I suppose you will have to pay it back. They could take you to court. Better make payment arrangements, tell them you can pay $20 per month until it's paid back.

by IWIU- 6 months ago

If it wasn't your money, then yes you owe it back. There isn't a oops clause that says you can keep it. You can always let them send it to collections and pay the price for years with bad credit. If you have bank accounts you will eventually find the money garnished out of there. That will make a really bad day. I would try to negotiate a payment plan.

by jdl- 6 months ago

Yes you should pay the money back the repercussions would be.That they can sue you & you would have to pay back interest & cort cost .

by Big Big Dude- 6 months ago

Odds are the 1000 is a payment under the Medical Payments coverage of your policy. As such, that check is sent to you by the insurance company. However, if the clinic bill has not been paid, you still owe them for the services rendered. So, yes, you have to pay them if their bill is still owed.

by MSAD- 6 months ago

You aren't paying it back - the money was for your medical bills, which you now have to pay. Pay it with money you earn, whether you spent the other money is irrelevant.

by Robbert Hobbemeister- 6 months ago

The extra 1000,received pay it back in one lump sum or at least in installments.

by krk- 6 months ago

U have to return back extra money u had received but there is deal with company in instalment

by Balu- 6 months ago

the 1k was most likely your medical payment coverage limits and paid direct to you. you were supposed to apply this amount to any unpaid medical bills; it was the job of your lawyer to verify all amounts owed for your medical bills. just because the clinic was paid 1/3 like you and your lawyer is not always the norm. ie; say the clinic bill is 3300, not 2300. the clinic was probably told that your insurance sent you a check for the 1K and they expected you to pay the 1k balance which you didnt. but they should have told your lawyer that the balance of your account was 3300 not 2300. also either your lawyer or the clinic should have said that they were waiting for the addtl 1k you received. and if you had told them you cashed it, they would have reduced your settlement by the 1k; call your lawyer and have him work it out. that is the reason you hired him. he should be able to negotiate with the clinic so you may only owe say 500 vs 1k: but if he can prove that they were in agreement to the 2300 only, then you should be off the hook. good luck

by lucy- 6 months ago