wrong billing

I paid for prescriptions at a pharmacy, which then billed the wrong insurance company, one that I had recently terminated coverage with. That company mailed reimbursement to me. I didn't notice that the checks were from the wrong company and deposited them. Several months later, the company is asking for their money back. I worked with the pharmacy to submit billing to the proper insurance company, and sent the first company a note saying that I'd send their money as soon as I received a check from the current insurer. I have not received that money yet, and the first company is threatening to take me to collections if they don't receive their money by Dec. 12th, three days from receipt of the threat! Can they do this? Did I handle this improperly? What do I need to do to protect my credit rating?

Technically yes you do need to repay if you agree it is an error; you can however argue hardship in having to pay all or any substantial portion--saying that it was their mistake after all, and you spent it w/o realizing it was in error, and paying back now would be difficult...they often will not sue or take any further court action in these cases but will try to work something out.

Contact WLD if need be.

I have tried contacting the company. My letter was not acknowledged. The only phone number on the threatening letter led to a phone routing system that does not recognize the name (only first name and last initial given) of the person who sent the letter. I have tried three times and ended up with someone different every time, not one of them in the correct department. One of them found the name, listed in claims recovery, and gave me a number which turned out to be wrong again. I left a message on that phone, requesting information about where I could reach the person. I have not had a response. In the meantime, I have sent a check and a note expressing my unhappiness with the nasty tone of their correspondence, and reiterating that I have been working on straightening out the pharmacy's and the insurance company's messes. I would still like to know if they can affect my credit rating. And I'd love to bill them for my time and expenses, but I doubt that it's worth the time.

By the way, thank you very much for taking the time to respond. I have been unsure about how to handle this. The pharmacy advised me that the company couldn't ask for the money back, since they knew that I was no longer insured by them, and suggested that I inform them of the re-billing and willingness to pay when I was reimbursed from the appropriate company. Until I got the nasty letter, I assumed that they knew what they were talking about, since they say that they run into that a few times a year. I've never needed legal help before, and didn't know where to start. Your service is appreciated.