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Old 22.02.2011, 15:36
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Re: Legal Action for overpayment

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I would do nothing, ignore all demands for money, and wait to see if any official legal action is started.

I always take the lazy approach and, so far, it's paid off. Think this logically ... a dodgy-looking tax-avoiding-looking company who can't keep any of their records in order is asking you for money. You don't give them any. What are they gonna do?
I reckon that's the way to play - or rather not play it.

The payroll company are at this stage "threatening legal action involving "swindle and fraud and a warrant" [for Bob's arrest]."

Let them try. This requires time, effort, money and documentary evidence. Sounds like they have little or none of any of these. If they really do proceed, then seek legal advice...
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