Non payment of rent

JuneBow

A fellow landlord of mine has just discovered that the standing order for a tenants rent has been going out of their account instead of into their account. It is undoubtedly the banks mistake but it has just been discovered after going on for about a year. LL had much family problems over the year and had not noticed until tax return time.
I presume the bank will have to rectify it, but will they be able to recover the money from the tenant?

Debt_Free_Chick

Sorry, but this makes no sense.

Are you saying that the LL has a standing order to pay the tenant?

Who authorised this standing order? What's the full story?

insured

Hi Junebow,
If the payment has gone out of the landlords account instead of into the account, it is of course a bank error, as the payment has not been authorised.
There have been several cases with the ombudsman where they have stated that even though the bank has made a mistake, then the individual must still repay the money. If you google ombudmans office, and then put bank error or incorrect credit as a search into their site you will be able to pull up a list of cases.
You will see that whether or not they have to pay back depends on a few things, but it seems that not many are able to wriggle out of it.
Of course, the money has gone out of the landlords account instead of into it, not only do they have to get the money back from the bank, put the tenant has not paid the rent. That may be trickier.
Hope that helps.

Rabiddog_2

The happiest tenant in the Land....He worships the ground his landlord walks on. Actually the LL doesn't deserve his money back .. should lose it all for stupidity.

clutton_2

"" It is undoubtedly the banks mistake "" - it is Very easy to confuse the "to" and "from" on some bank standing order forms