If our bank balance is low we simply tighten our belts and avoid making unnecessary expenditures. Over the last year we had a false impression of how much money was in our account and so we spent money that we would otherwise simply have avoided spending.

The insurance company has been asked for the legal basis on which they are claiming repayment. No doubt they will claim "Unjustified Enrichment". I would agree if they had contacted us immediately, but the delay of a year puts things in a quite different light. Will "Change of Position" act as a good defence?

Any other angles on defence, especially in English or Scottish Law, would be welcome. The problem has caused distress, annoyance, and inconvenience. Once thing that has made us unhappy is that the insurance company was given the bank account details solely for the purpose of obtaining Direct Debit payments, not for making deposits into the account. Is there any claim against the insurance company for breaching the trust placed in them when they were given the account details? Also my wife was the insurance company's customer and it is her that they are pursuing, but the account into which they paid the money is a joint one, can this help frustrate the insurance company?

Regards
Hal

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