£21,000 paid into account, mistake

Gem_

Personally I would write to the bank - then your friend will have proof s/he has told them about the mistake and can enjoy the interest it earns them while the bank figure out where it should have gone. I agree with the above post that they shouldn't move it into another account - not only does it look like they were trying to steal the money but the bank might take it back without notice and leave your friend £21,000 overdrawn!

No one ever seems to give me free money, least of all my bank ...

Gem

bootman

A friend told me that this happened at the bank where he worked a few years ago. The person spent the money. The bank had to allow them to pay it back in very small insallments.

lallyaya

£21K is a lot of money and Chris4817 is right the Theft Act Section 24A dishonestly retaining a wrongful credit can land you in prison! Dishonesty is fairly easy to prove on these ones because if you spend the money or move it can you really justify that as being an honest action?

Let the bank know and don't touch it - just hope you get to keep some of the interest!

Chris4817

lallyaya wrote:

£21K is a lot of money and Chris4817 is right the Theft Act Section 24A dishonestly retaining a wrongful credit can land you in prison! Dishonesty is fairly easy to prove on these ones because if you spend the money or move it can you really justify that as being an honest action?

Let the bank know and don't touch it - just hope you get to keep some of the interest!

Very sensible words and what I was trying to say. It just isn't worth taking the risk.

halloweenqueen_2

I had someone else paying my mortgage as well as me when i first had one, I had to convince the bank I had no account at that bank, no knowledge of anyone with that name or no mystery benefactor! they had allocated me the same mortgage number of some one else, I'm not quite sure how the other person didn;t know as they had paid for 3 months when i find out.

saver_sam

Also something to think about, if you spend it, and obvously can't pay it back immediately, then the company that made the error may send someone with a court summons demanding that you pay it. I know as my OH has had to serve one or two for similar examples where cheques have been issued twice, one then claimed lost but both banked.

nemo183

One of the great things about these forums is there's always someone who can help with actual info, on things like this.

I guess if you're a BSD in the city, with tens of thousands going into and out of your account each month, you might well get away with a defence of ignorance. However, for the rest of us "wage slaves", telling the bank before they tell you might be a good option.

Come to think of it, why not send them a letter, the contents of which you make sure are witnessed by someone when you hand it in over the counter (make sure you get a free certificate of posting) - to the "Customer Service Centre" whose address will most probably be at the top of your statement - which is unlikely to be your branch address - and just advise them that you believe you have got a credit in error.

Since it seems to be my banks policy of ignoring such letters, once you've told them the ball's in their court.

If you really want to add a twist to the above, I suggest you mark your letter for the personal attention of your branch manager - this should virtually ensure it is never actioned, as instead of being dealt with by the service centre, they will welcome the chance to pass it on to somebody else....

Incidentally, it's interesting to know that just by hanging on to the money you are committing a criminal offence. A recent audit of my own company's interest payments on loans and overdrafts showed, over a 3 year period, a total overcharge of some £11,000. This took one of our accounts clerks a total of three weeks work to prove, since our bank said the error was "impossible", and only relented when we provided them with over 900 days of individual data, showing interest owed against cleared balances.

This however does not count as fraud.....just a "mistake".

Chris4817

nemo183, an excellent reply and you make some valid points.

Unfortunately for a person to commit the offence previously mentioned you have to prove 'dishonesty', that is the key.

As much as I would love to see a bank or large financial institution taken to court for this it would be almost impossible to prove that any one person had been dishonest, particularly when they are handling such large sums of money.

nemo183

Chris4817 wrote:

As much as I would love to see a bank or large financial institution taken to court for this it would be almost impossible to prove that any one person had been dishonest, particularly when they are handling such large sums of money.

Yes, just wishful thinking on my part. I assume the "large sums of money" you refer to are the wheelbarrows full of cash that represent yet another year of record profits for most banks.................

cheerfulcat

nemo183 wrote:

Yes, just wishful thinking on my part. I assume the "large sums of money" you refer to are the wheelbarrows full of cash that represent yet another year of record profits for most banks.................

Large portions of which are finding their way into your pension funds, of course...