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Money paid into account in error
Got a statement today for a barely-used current account which usually has pennies in it - and there was a credit on it for over �1000.
As nice as it would be to have �1000, my conscience (and morals) prevailed as usual, and I decided to phone them to find out who had paid this in and to let them know I thought it was an error. Just waiting for them to call me back to sort it out.
So my question is -
What are the legalities to paying this money back (as I assume many people would just keep quiet or withdraw the cash)? Is there a time limit imposed on trying to collect the monies?
As nice as it would be to have �1000, my conscience (and morals) prevailed as usual, and I decided to phone them to find out who had paid this in and to let them know I thought it was an error. Just waiting for them to call me back to sort it out.
So my question is -
What are the legalities to paying this money back (as I assume many people would just keep quiet or withdraw the cash)? Is there a time limit imposed on trying to collect the monies?
Answers
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Legally, you will have to pay the money back, but you can take your time over it.
If cour concience will let you, draw it out in cash, and wait for them to chase you for it. When they do, offer to replay at �50 per month.
The error was theirs, you withdrew the money in good faith, and you have demonstrated a willingness to repay the debt.
If they get stroppy, tell them you'll ask the Ombudsman to sort it out - they will accept then.
Then put the money in a high-interest ISA and make some interest on it, and set up a Standing Order (not a Direct Debit or they'll snaffle the lot!) on your current account.
I know it works - I have done it. It was my payback to the Co-Op for massively mistreatring me as a customer.
If cour concience will let you, draw it out in cash, and wait for them to chase you for it. When they do, offer to replay at �50 per month.
The error was theirs, you withdrew the money in good faith, and you have demonstrated a willingness to repay the debt.
If they get stroppy, tell them you'll ask the Ombudsman to sort it out - they will accept then.
Then put the money in a high-interest ISA and make some interest on it, and set up a Standing Order (not a Direct Debit or they'll snaffle the lot!) on your current account.
I know it works - I have done it. It was my payback to the Co-Op for massively mistreatring me as a customer.
Thanks for your answers. I actually like my local bank (unlike others I've dealt with). But I always think the other way around - if the creditor had been me and I wrote the wrong details by mistake, I'd be gutted if someone knowingly swindled me out of so much money rather than owned up to it. Surely the banks aren't obliged to refund the money if I chose not to surrender it?
I know I'll be crucified by some people I know for being honest but they'd be the first to complain if someone pulled a fast one on them!
6 years would be a long time to sit and wait to touch that money! Everytime we were on the breadline I'd be twitching to get my hands on it LOL!
I know I'll be crucified by some people I know for being honest but they'd be the first to complain if someone pulled a fast one on them!
6 years would be a long time to sit and wait to touch that money! Everytime we were on the breadline I'd be twitching to get my hands on it LOL!
If the bank had credited it to your account because they made an error then they can reverse it once they discover their mistake.
On the other hand if the person paying the money made the error - by quoting the wrong account number for example - then they would be relying on your goodwill to get the money back.
On the other hand if the person paying the money made the error - by quoting the wrong account number for example - then they would be relying on your goodwill to get the money back.
I don't agree with Rollo's last comment. There is such a thing as unjust enrichment. You know the money is not yours and you would almost certainly lose any Court case related to it because keeping it is enriching yourself at someone else's expense. It is also tantamount to theft, although the legal definition of theft may not cover it.
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Maybe it is different where you come from but in Australia withdrawing the money would be committing a fraud for which you could be prosicuted.
It is quite clear that you could not have failed to notice the money among other transactions and you are obviously aware that you are not entitled to it.
The smart move would be to contact you bank and inform them of the mistake.
It is quite clear that you could not have failed to notice the money among other transactions and you are obviously aware that you are not entitled to it.
The smart move would be to contact you bank and inform them of the mistake.
Hi Beso
If you've read all of my post, that's exactly what I did do as soon as I saw the statement. I'm not a dishonest person, I notified the bank that there was a mistake.
I was just interested to know what the legalities were in the case of someone trying to keep the money for themselves - as you and I both know, some people would take the money and run without a second thought.
If you've read all of my post, that's exactly what I did do as soon as I saw the statement. I'm not a dishonest person, I notified the bank that there was a mistake.
I was just interested to know what the legalities were in the case of someone trying to keep the money for themselves - as you and I both know, some people would take the money and run without a second thought.
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