Do I have to repay accidental direct credit ?

money-magnet_3

Hope someone can give me some advice.

My bank account has been direct credited by another bank for a regular standing order, but (accidentally) from the wrong customers account. They have sent me a letter admitting the error and explaining that they have repaid their customer and would like me to refund them by direct credit to a specified account and sort code (at first I thought that it was a scam !!).

I have since been correctly paid by the correct customer. Do I have to return the money ? and if so, am I entitled to retain any portion to cover my own expenses (I made quite a few calls to verify and understand what had happened).

Stonk

First up, yes, of course you have to return the money. It is not yours. You might be able to get some gesture of goodwill reimbursement for your time in sorting out the bank's error. But I strongly recommend you pursue that avenue afterwards rather than withholding some of the funds you currently owe.

I am very surprised the bank ask you to return it by sending it to another account. Tell them you are not comfortable with that, because that account could be anyone's! In fact, it does sound just like the way a scam might work. There's no reason your bank cannot take it back directly from your account - specify a date when you are happy for them to do so.

(The reason the bank is asking for you to do the transfer might be to give you control over when the money leaves, so as not to catch you unexpectedly short of money - that's why you give them an acceptable date.)