Doc Holliday Posted February 26, 2015 Report Share Posted February 26, 2015 Can anyone tell me what the legalities are when money has been paid in to an account in error? I have a friend who has paid an invoice to an old supplier in error via bank transfer. He has asked them to return the payment but they have been fobbing him off with excuse after excuse so it looks like he won't be getting it back. Will he be wasting his time going through the small claims court. One assumes he has a legal right to claim it back or is it a case of hard luck? Thanks, Doc. Quote Link to comment Share on other sites More sharing options...
ph5172 Posted February 26, 2015 Report Share Posted February 26, 2015 I Paid money into a wrong account, called the bank and explained and they reversed the transaction Quote Link to comment Share on other sites More sharing options...
smig4373 Posted February 26, 2015 Report Share Posted February 26, 2015 i don't think there is any legal obligation for the bank to refund the monies... Quote Link to comment Share on other sites More sharing options...
stubby Posted February 26, 2015 Report Share Posted February 26, 2015 when you say old supplier, did he owe them an old debt?? Quote Link to comment Share on other sites More sharing options...
arjimlad Posted February 26, 2015 Report Share Posted February 26, 2015 I've had to recover monies paid in error for clients before now. It is recoverable and the county court process can work subject to the usual old adage of blood and stones. There's really no defence, unless as Stubby says above the recipient had a legitimate debt owed to him by the paying party. Quote Link to comment Share on other sites More sharing options...
Doc Holliday Posted February 26, 2015 Author Report Share Posted February 26, 2015 No, he didn't owe them anything. He just hasn't used them for a few years. I Paid money into a wrong account, called the bank and explained and they reversed the transaction I think this can only be done on the same day as the money going out. Quote Link to comment Share on other sites More sharing options...
ph5172 Posted February 26, 2015 Report Share Posted February 26, 2015 No, he didn't owe them anything. He just hasn't used them for a few years. I think this can only be done on the same day as the money going out. Not sure i know it was about a week past the deadline until the Supplier asked for monies owed, after the usual 'its been paid, speak to your end' i discovered the error was on our part and consisted of an incorrect digit in a new account number Quote Link to comment Share on other sites More sharing options...
moose man Posted February 26, 2015 Report Share Posted February 26, 2015 If it was paid in error & he didn't owe them anything and they wont return his money I would have thought that was theft ! .. Knowingly keeping something that doesn't belong to you is theft , im sure the small claims court would sort the problem .. Quote Link to comment Share on other sites More sharing options...
Chris Bb Posted February 26, 2015 Report Share Posted February 26, 2015 This worries me. I pay self employed tax & NI by BACS. I get no receipt or acknowledgement of payment, how do I prove that I've paid it if it goes to a wrong account? It's too easy to pay into any account. Quote Link to comment Share on other sites More sharing options...
GingerCat Posted February 26, 2015 Report Share Posted February 26, 2015 If not returned and he has asked them it's theft. Simple as. Theft act is pretty clear on this one. Quote Link to comment Share on other sites More sharing options...
Gordon R Posted February 26, 2015 Report Share Posted February 26, 2015 It seems analogous to "Theft by finding". Quote Link to comment Share on other sites More sharing options...
eddoakley Posted February 26, 2015 Report Share Posted February 26, 2015 It seems analogous to "Theft by finding". ^this^ I am sure "theft by finding" was what I was told when my bank miscounted some cash a while back. I watched the cashier count it wrong, asked her to check, watched her count it wrong again as I knew it was wrong but she insisted. The mistake was £5k and there was a lot of panic for the next 20 odd hours while I ignored the calls and voicemails! Edd Quote Link to comment Share on other sites More sharing options...
Psyxologos Posted February 26, 2015 Report Share Posted February 26, 2015 There is no legal requirement for the recepient to return the money, but there is a moral one. I hope it gets sorted. Quote Link to comment Share on other sites More sharing options...
welsh1 Posted February 26, 2015 Report Share Posted February 26, 2015 There is no legal requirement for the recepient to return the money, but there is a moral one. I hope it gets sorted. There is and you can go to jail. http://www.dailymail.co.uk/news/article-2594460/Young-mother-benefits-went-designer-spending-spree-52-000-just-hours-council-accidentally-credited-account-escaped-jail.html This may help http://www.moneysavingexpert.com/banking/send-money-wrong-account Quote Link to comment Share on other sites More sharing options...
Gordon R Posted February 26, 2015 Report Share Posted February 26, 2015 I think that there is. Quote Link to comment Share on other sites More sharing options...
MartynGT4 Posted February 27, 2015 Report Share Posted February 27, 2015 (edited) I used to work for a bank many years ago and situations like this used to be resolved between the banks. The bank that sent the funds would write to the receiving bank and politely ask for the funds to be returned, most of the time the error was resolved without a fuss. Failing that, a small court claim might be worth investigating but give the CAB a call first. Here's a link to the financial ombudsman page on erroneous payments, it's worth a read. http://www.financial-ombudsman.org.uk/publications/technical_notes/wrong-account-payments.htm As others have suggested, a refusal to repay the payment when they had been advised of the error could be considered grounds for a prosecution for theft as they could not claim they were unaware the payment had been made. Having evidence of any telephone calls, emails, letters advising them of the payment would help your case. Edited February 27, 2015 by MartynGT4 Quote Link to comment Share on other sites More sharing options...
100milesaway Posted February 27, 2015 Report Share Posted February 27, 2015 This worries me. I pay self employed tax & NI by BACS. I get no receipt or acknowledgement of payment, how do I prove that I've paid it if it goes to a wrong account? It's too easy to pay into any account. You have every reason to be worried,I have all my life been self employed right back to the days of paying for and sticking stamps on insurance cards. When i came to draw my pension, yes, you guessed it they had lost 7 years of my cards., even though I had sent the cards in recorded delivery and they always posted me a new card to fill in. This has resulted in me losing part of my OAP. Still I suppose someone has to contribute to all the spongers who havn't paid a penny in ... from Auntie. Quote Link to comment Share on other sites More sharing options...
Psyxologos Posted February 27, 2015 Report Share Posted February 27, 2015 There is and you can go to jail. http://www.dailymail.co.uk/news/article-2594460/Young-mother-benefits-went-designer-spending-spree-52-000-just-hours-council-accidentally-credited-account-escaped-jail.html This may help http://www.moneysavingexpert.com/banking/send-money-wrong-account Thanks for that. I was not aware things changed last April... But what if I don't realise straight away that I've made a mistake? Before April 2014 there was nothing in place to help people who found themselves in this sticky situation. Thankfully, banks have now signed up to a voluntary code, which means that as soon as someone tells their bank they have made a mistake with a payment, the bank will act within two working days. And it doesn't matter if you discovered your mistake after a week or even a year... though it's good financial sense to keep an eye on your account(s) to make sure your payments have reached the right recipient. Quote Link to comment Share on other sites More sharing options...
m3vert Posted February 27, 2015 Report Share Posted February 27, 2015 I accidentally paid money into an ex girlfriends credit card (clicked the wrong account using online banking) I immediately called MBNA who stated quite clearly that there was nothing they could or would do about it. They advised speaking with her and asking her to confirm it was a mistake, if she refused they said that nothing could be done. Thankfully she wasn't that bad and confirmed it was a mistake, and I got the transaction returned. However I was cheesed of with MBNA's attitude and immediately cancelled my card and have not used them since. Quote Link to comment Share on other sites More sharing options...
activeviii Posted February 27, 2015 Report Share Posted February 27, 2015 There was a programming not so long ago with that Dom Littlewood on just this subject. Someone had made a paywent into the wrong account, banks had this agreement of good faith but, the recipient had to agree too. In this case he would not play ball and there was nothing the banks could do as the payment was authorised. Ended up in court and cost the person who sent the money. Quote Link to comment Share on other sites More sharing options...
Psyxologos Posted February 27, 2015 Report Share Posted February 27, 2015 (edited) There was a programming not so long ago with that Dom Littlewood on just this subject. Someone had made a paywent into the wrong account, banks had this agreement of good faith but, the recipient had to agree too. In this case he would not play ball and there was nothing the banks could do as the payment was authorised. Ended up in court and cost the person who sent the money. That was my experience too when trying to help an elderly neighbour who mistook an '8' for a '3' and paid the wrong person. The bank said that since the transaction was initiated by and authorised by her when my neighbour used online banking, the other party did not have any duty to return the money. That was two years ago. Edited February 27, 2015 by Psyxologos Quote Link to comment Share on other sites More sharing options...
AVB Posted February 27, 2015 Report Share Posted February 27, 2015 Why do some people feel that the banks or credit card companies should play a role in this? If you posted some money to somebody and the postman delivered it correctly but you had addressed it incorrectly would you try to blame the postman? Of course not. Quote Link to comment Share on other sites More sharing options...
m3vert Posted February 27, 2015 Report Share Posted February 27, 2015 Clearly AVB has never made a mistake in his life, I applaud you Sir. The banks allow us to make electronic transactions that are easier and easier, however mistakes happen, they should assist better than they do. I bet you any money if they deposited money into my account by mistake that they have a system in place to recover it in an efficient manner! Quote Link to comment Share on other sites More sharing options...
AVB Posted February 27, 2015 Report Share Posted February 27, 2015 Clearly AVB has never made a mistake in his life, I applaud you Sir. The banks allow us to make electronic transactions that are easier and easier, however mistakes happen, they should assist better than they do. I bet you any money if they deposited money into my account by mistake that they have a system in place to recover it in an efficient manner! I have made many mistakes but not paid somebody by mistake. I am careful who I give my hard earned money to. But if I had I would hold my hands up and not try to blame the postman. Quote Link to comment Share on other sites More sharing options...
m3vert Posted February 27, 2015 Report Share Posted February 27, 2015 So you wouldn't expect the postman to assist you in anyway what so ever? From my experience the bank involved could have been more helpful than they were. It wasn't their cash, they were not effected in any way, and couldn't give a monkeys about my situation. That seems to be what some are annoyed about, yes there will be limitations on what they can do, but they can assist. I too am careful about where and who I give my hard earned to, but guess what I made a mistake, so have others. But there again we are not as perfect as you Quote Link to comment Share on other sites More sharing options...
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