Statutory interest on undue payment - Legal aid centre

Questioner

we received a large amount in our account from housing association (anonymous) in October 2014. As we suspected that this was an undue payment, we immediately requested the booking documents by email. received a confirmation of receipt. then called within 1 week; we were supposed to be called back, this did not happen. The money was parked in a savings account of third parties in order not to miss out on rent allowance and other provisions for minimum income at social assistance level. After more than 10 months, the money was asked back; after some back and forth phone calls, they threatened us with statutory interest that we would have to pay because we were supposedly 'in bad faith'. We dispute the latter. Of course, the principal sum will be paid back, but can the statutory interest be asked in this case? Because the money was considered part of the assets of the party that 'parked' the money, we have already lost money

Lawyer

You should have immediately transferred the amount back to the counter account with the statement 'paid without due cause', then you would have acted in good faith. Now that is debatable.