Recovering overpaid standing order money

deryckt

Hi,

Without going into details (yet), is it possible to legally recover money paid into someone's bank account because you forgot to cancel the standing order that put the money there.

Many thanks,

Deryck

Biggles

Without going into details: No.

You gave your instructions, the bank complied with them. All you can do is go to the payee and ask nicely....

preable

No you told your bank what to pay and they paid it all you can do is ask the person you sent the money to and ask them for it back

Chris55_2

Well it probably depends if the standing order was for a particular service or item, for example if you were buying something and forgot to cancel the standing order. If you had an agreement in writing then I think you'd have a case if you'd accidentally overpaid but the shop refused to refund the money because you'd previously agreed a price. If it's some sort of informal arrangement then you'd have more difficulty proving that you hadn't intended to make the payment. edit - to point out that you have no case against the bank, any case would be directly with the shop or person you were dealing with.

deryckt

Thanks for the replies so far. Just to clarify first; I put this under a bank account discussion because it involved a standing order, I have no complaint against the bank. Now, the details...

Last year we cancelled a contract with a cleaning firm that was paid, in part, by a standing order. The cancellation was made in writing, giving one month's notice (as required by the contract). The company acknowledged this in writing and stopped sending round the cleaner. Unfortunately I forgot to cancel the standing order at the time and only did so 2 weeks ago. This resulted in unnecessary payments of over £400. Examining the contract I read that it was the customer's obligation to cancel the standing order (which is fair enough) and that "if the client fails to do this the company will charge an administration fee of £18.50 in the event of any repayments having to be made". I interpreted this as they would return the overpaid money less £18.50 and wrote to them to that effect. However after a phone call from the company it seems that they are unwilling to repay anything.

Is this worth pursuing in the small claims court (or something)?

Thanks,

Deryck

Mikeyorks

deryckt wrote: »

Is this worth pursuing in the small claims court (or something)?

Yes.

You've been paying them for a service they no longer provide. Despite this was inadvertent / careless (delete as you think appropriate) on your part you're entitled to the money back. They're entitled to deduct a reasonable admin fee - but that's the scale of it.

Special delivery letter first - setting a deadline, and that may be all that's needed.

Biggles

Yes, they seem to have shot themselves in the foot by providing a means - and even an administration charge - for refunding overpayments, then refusing to do it. A serious letter should do it.

deryckt

Hi,

I took legal advice: English Law has a concept of "unjust enrichment" which describes this scenario perfectly. When I informed the other party of this they paid up, immediately

Cheers,

Deryck

Mikeyorks

Pleased you resolved it.

deryckt wrote: »

English Law has a concept of "unjust enrichment" which describes this scenario perfectly.

Ideal for persuading the Bankers to repay their excessive bonuses!

pmduk

Ideal for persuading the Bankers to repay their excessive bonuses!

Shouldn't we be using this against MPs?