Should I worry about this windfall?

By THIS IS MONEY
Updated: 05:48 EST, 27 November 2009

While on holiday overseas my mother-in-law ended up in hospital and to enable her to leave before the bill was settled I used my credit card to provide a bond. Eventually her insurance company paid the full amount and she reimbursed me with the cost of the bond.

Later the hospital credited my card and I ended up with twice as much as I should have. I contacted the insurance company and sent off a cheque.

That was three months ago and they have still not cashed it. What should I do now?

I feel inclined to keep quiet and hope they never do cash it but where do I stand legally if I do so? T.H., Warrington, Cheshire

Simon Moon from This is Money replies: You do not say how much this bond was, but as it was intended to cover the hospital against non-payment for your mother-in-law's treatment, I guess it was fairly substantial.

Normally, I would suggest that honesty is the best policy if only for peace of mind, but you have been honest.

You sent back a cheque that has not yet been cashed. It may be that it was separated from your covering letter and is still lying in someone's in-tray at the insurance company. Another possibility is that it has simply been lost.

After six months, banks may refuse to honour a cheque, but in fact they remain valid for six years. If you are prepared to take a gamble on it not being cashed, the overpayment could be used towards another holiday in the hope that this time your mother-in-law does not end up in hospital.