Nationwide Deposit Wrongly Into My Account

GAVEL

Nationwide B.S. recently deposited £425 into my account. The money was transfered from my old tenants account and the building society paid it wrongly into my account and not his new landlord's. They have been in touch to resolve this situation. However I am in Asia at the moment and not back in the UK for a month. Therefore difficult to sort out!!
The old tenant still owes me about 4 times this amount and has been slow in repaying his debt.
I felt that there was some justice in this error by the B.S., however I would like some advice as to where I stand before I return to the U.K.

talana

Hmm, don't know what the rights and wrongs are in that situation but would be interested to find out. If the ex-tenant owes you money, try arguing your "right to offset"?
If it's good enough for the banks...............

Extant

Legally, you have no right to accidental credits.

Although you are owed the money, the fact that the amount is (presumably) different, as well as the recipient name (presumably) also being different will quickly show it to be an accidental credit.

Return the funds and pursue your ex-tenant appropriately.

Extant

talana wrote: »

Hmm, don't know what the rights and wrongs are in that situation but would be interested to find out. If the ex-tenant owes you money, try arguing your "right to offset"?
If it's good enough for the banks...............

This isn't offsetting, and it's good enough for the banks because a legal right exists for them to do so. It is highly unlikely that such a right exists in this situation, as it is far from applicable.

talana

BarclaysManager wrote: »

This isn't offsetting, and it's good enough for the banks because a legal right exists for them to do so. It is highly unlikely that such a right exists in this situation, as it is far from applicable.

No doubt that's true, I was being a bit flippant, but morally I see no difference between the two situations.
It's legal for banks, I see no reason why it shouldn't be made legal then for others creditors to apply the same principle.

Although you are owed the money

As are banks that apply offsetting

the fact that the amount is (presumably) different

As is normally the case when banks offset. Anything towards the total debt they're happy to take.

as well as the recipient name (presumably) also being different

Your point I guess being that this shows the money wasn't intended to pay off the debt. And when banks offset, it may be needed to pay rent or essential bills. Do the banks generally care?

Extant

talana wrote: »

No doubt that's true, I was being a bit flippant, but morally I see no difference between the two situations.
It's legal for banks, I see no reason why it shouldn't be made legal then for others creditors to apply the same principle.

As are banks that apply offsetting

As is normally the case when banks offset. Anything towards the total debt they're happy to take.

Your point I guess being that this shows the money wasn't intended to pay off the debt. And when banks offset, it may be needed to pay rent or essential bills. Do the banks generally care?

You evidently have some sort of ill-taste for a bank's right to set off (not actually offsetting, but I assumed you knew the difference) debts.

Regardless of your opinion of set off, this is most certainly not the same situation and your advice was poor - indeed, had the poster followed it, he would not have a leg to stand on.

You can carry on about set off if you want, but the ultimate reality is that this is not the same, he has no right of set off, you were wrong, and keeping the money is not the right thing to do.

EarthBoy

GAVEL wrote: »

...The money was transfered from my old tenants account and the building society paid it wrongly into my account and not his new landlord's. .....

If the Nationwide really did make a mistake then you have no right to the money and you will have to repay it. However, I would think it a bit unlikely that they paid it into your account in error. How did this happen? Are you sure it wasn't your old tenant who made the mistake and accidentally paid it into your account instead of his new landlord's account? If so, then the Nationwide cannot make you repay the money because they only carried out your ex tenant's instructions and he will have to ask you for it direct. In this case I would think you have a right to keep it if he owes you money anyway.

talana

BarclaysManager wrote: »

You evidently have some sort of ill-taste for a bank's right to set off (not actually offsetting, but I assumed you knew the difference) debts.

Regardless of your opinion of set off, this is most certainly not the same situation and your advice was poor - indeed, had the poster followed it, he would not have a leg to stand on.

You can carry on about set off if you want, but the ultimate reality is that this is not the same, he has no right of set off, you were wrong, and keeping the money is not the right thing to do.

Set off, off set... what the !!!!, you know what I'm referring to. I'll slap myself on the wrist for failing the terminology test.
As for my "advice", did you miss the bit in my first post where I said I don't know the rights and wrongs in that situation? :rolleyes: Hardly something the poster was going to follow after I'd made that clear.
And you can tell me one's legal and one's not again if you wish, won't change my opinion. .

GAVEL

Thanks to all of you for your help. Earthboy has made a good point. I made the assumption that Nationwide had made the mistake! If the tenant had originally made the instruction and then rescinded it, the situation changes. As BarclaysManager has pointed out, if it is a Nationwide mistake then the money must be returned to them.
I will try and clarify the situation when I return to the UK.