Bank account double entry

[coffers1]

My friends mum has gifted her �10,000 to buy a house....my friend has put the money in a Lloyds TSB account but the bank have credited it twice....she has �20000....I know she cant spend the money because it would be stealing but can anyone explain the legal side of it...what about the interest paid on the money?  does she have a responsibility to tell the bank?  pplease enhance my banking knowledge...

[ursula62]

If your friend knows the bank has made a mistake it is her responsibility to advise them - not to do so is to commit fraud.

As far as the interest goes, maybe she should negotiate with the bank - legally its not hers as the money isn't hers, but they might make an exception for being honest

[Didwot]

I simply do not see how you commit fraud by having the bank credit your account with the wrong amount. Even if you stand idly by and wait for the bank to spot their error.

[snapdharlich]

Banks make more mistakes than they would like you to realise.  Our business charges for change etc are usually �200-�300 a month.  Quite recently on more than a few occasions it has been �2000-�3000.  When we contact the bank, we get a giggle and told that one of them must be dreaming about their holidays.  The's the biggest bank in Scotland for you. Another time, my father accidently used one of my cheques signed with his name. They put it through - I was fined for going way over my overdraft limit. They weren't so quick at refunding the fine though.

In this case, you should be allowed to keep the interest - It is the banks fault.  I would also do it soon, since family is involved. Perhaps you could contact the mother to see if her account has had the full amount withdrawn. It may be the banks fault and money.

[Mrs_Pegasus]

Personally, i would notify the bank immediately.  I am surprised they never questioned the amount being deposited in the first place.

There is also the tax implications of the gift.  If you are bound by UK tax laws the maximum amount anyone can receive as a 'gift' in any financial year is �3,000.  In theory your mother is liable for tax on the other �7,000.

Maybe, if you 'keep' the money for a while they may well question the whole transaction. 

[khana]

I used to work for Lloyds TSB, they will reverse the transaction backdated by the computer system and it will automatically adjust the interest earned in both directions. Sorry.

[stevie21]

What if your friend convinces herself that her mum has, in fact, given her �20K and then spends it all?
She could claim that she was only told that she'd be getting "a sizeable sum" from her mother and assumed that once �20K appeared in her account that it wasn't a mistake.

All she needs to do is get it out of that account before LloydsTSB click.
Obviously I'm kidding and I'd never condone such skullduggery!