Monies paid in to my bank account by accident

ericmac

Just before the New Year, a friend of mine was credited in his personal bank account with two separate transactions totalling £5,000. He realised this money was most likely paid into his account by mistake. About one month later the bank who paid this into his account has now realised that an error was made. Consequently, they are now pursuing him for the £5k. Firstly, I was wondering what the legalities of this situation are, and ultimately, does he need to give the money back (in law) ? Secondly, if he agrees to hand the money back, is he entitled to any compensation. Where I am coming from is this: If you accidently make an error and let yourself get overdrawn, the bank will hit you with massive bank charges, even if you are a couple of pounds overdrawn. Surely the same should apply when they make a mistake.

masonic

It is not more likely that the person that made a mistake is another account holder... someone who is now despairing that they have lost 5 grand because of a stupid typo?

withabix

I take it your friend has spent the 5 grand?

amandathepanda

Maybe the bank didn't make the mistake, the person who put the money in may have quoted the wrong account number which was coincidently the number of an actual account holder at that bank.
Which ever way you look at it the money wasn't his and he spent it, his mistake.

pixie1

This happened to a friend of mine a few ears back but the amount was a lot smaller, she had to pay it all back although they did allow her to pay it back in installments - no comp though.

Addicted2Chocolate

yes legally he has to pay it back. If he has spent the money, knew the money was not his, and dpoes not pay back, the bank can puruse him for theft.

ReportInvestor

ericmac wrote:

He realised this money was most likely paid into his account by mistake.

:rotfl:

He should pay it back and be suitably embarrassed that he was not the first to raise the issue with the bank, rather than seeking compensation.

Compensation for what, since you say that he knew what was going on?

It's not a game of Monopoly.

anticlaus105

See this http://forums.moneysavingexpert.com/showthread.html?t=135580