Barclays credit my account in error - where do I stand?

PabloNeruda

I received 2 credits of 380 pounds and 450 pounds into my (joint) bank account in July and August respectively. We do not keep a close eye on this account, we both pay a fixed amount into it each moth to cover all bills and the mortgage, and we always overpay so that the account builds up a nice credit balance. Consequently these amounts went un-noticed, as we do not check the statements.

We recently used the credit balance to finance the purchase and installation of a new bathroom. Today I received a letter from Barclays informing me of their error, and asking my permission to debit the account with these amounts. The problem is I have already spent it.

What rights do I have? Is there any legal protection I have? Can I come to some arrangement with them? After all, it wasn't my fault.

Thanks.

zzzLazyDaisy

The money is not yours. It was paid in error and the bank is entitled to reclaim it.

However, if you have spent the money in good faith, believing it to be yours, then they should be reasonable and come to an agreement for you to pay by installments.

But be warned, if you continue to fund this account, the likelihood is that they will take the money as it goes in, which might mean that your direct debits bounce. So do keep a close eye on it till you get this sorted out.

rio

Ask if a loan can be taken out to repay the amount incorrectly credited. As it is their fault you may well get one at 0%.

jonesMUFCforever

You have no rights to this money whatsoever.
If you did not keep an eye on the account - tough.
If you did not read your statements - tough!
They have written asking for your permission - some would have debited the account and then advised you!
Like some previous posters the best you can hope for is a little time to sort it out. I do not think you will be offered a 0% loan.

Gordon_the_Moron

ejones999 wrote:

You have no rights to this money whatsoever.
If you did not keep an eye on the account - tough.
If you did not read your statements - tough!
They have written asking for your permission - some would have debited the account and then advised you!
Like some previous posters the best you can hope for is a little time to sort it out. I do not think you will be offered a 0% loan.

I'd expect them to be reasonable, either allowing it to be repayed in installments. After all, yes PabloNeruda's bank statements should have been checked, that was a mistake and a less learnt I'd imagine. It was the bank's fault that the money was their, they shouldn't have put it their and if they hadn't there wouldn't be a problem.

mothersuperior

If a bank credits your account wwith any amount of money, where you don't know the source. PLEASE PLEASE contact your bank straight away.
You never know it could be a bonus from work but 9 out of ten times it's an error. You have no grounds for you to stop them claiming payment. Best thing you can do, if you get yourself into this situation.

Act like you didn't know.
Say it was in good faith.

The bank should on it's on part ask for you to pay it back in installments.

But yes sorry. Just remember banks are out to get you!

jonesMUFCforever

Gordon_the_Moron wrote:

I'd expect them to be reasonable, either allowing it to be repayed in installments. After all, yes PabloNeruda's bank statements should have been checked, that was a mistake and a less learnt I'd imagine. It was the bank's fault that the money was their, they shouldn't have put it their and if they hadn't there wouldn't be a problem.

How do you know its the bank's fault?

homersimpson_3

What rights do I have? Is there any legal protection I have? Can I come to some arrangement with them? After all, it wasn't my fault.

sorry to say this but whilst the initial fault (crediting incorrect amounts) may have been bank's error spending money that wasn't yours was your error. bank will argue if you don't check statements then you should- part of managing money, budgeting etc. they can recover money and could have taken it straight away. you would have been given copy of terms and conditions when opening account. you need to contact them and try and see if you can repay over time. if you try and keep money theft- you are keeping something which is not yours to keep.

masonic

ejones999 wrote:

How do you know its the bank's fault?

In all likelihood it's the fault of some poor sod who made a typo whilst doing a bit of online banking.

Alfie_E

masonic wrote:

In all likelihood it's the fault of some poor sod who made a typo whilst doing a bit of online banking.

Which would explain why the bank is having to ask. You’d be a bit miffed, if someone paid you for something using a bank transfer, only to have the bank reversed it simply because the buyer claimed the transfer was made in error.

PabloNeruda

Just to let you know, the bank has given me a 0% loan for the full amount over 18 months. Nice result!!!:beer: