Problems with bank

Adventurer30

Hi, I have a small problem with my bank. I have received a call about my recent transfer to overseas back home to my country (Hungary).
Do the bank have the right to reclaim money because of an exchange rate error? - the amount was exchanged according to mid term rate which was higher than the one the bank originally offered me....I have already used the money (my money...) and now they want to set an appointment day to discuss how much I have to pay back to them - i find it quite upsetting!
Does anybody know what the official steps should be in such a case? Do I have any obligation? It is not my fault that they have made a mistake, is it not?

Thanks
Adventurer30

bendix

Interesting issue. Morally and legally they are within their rights to claim the money back from you (the fact you've spent it is irrelevant) because the base position is that an error was made and more money was transferred than should have been.

Was it a substantial amount?

If it's not, then they might waive it for other reasons such as you being a long-term customer (if you are) or to avoid bad PR etc etc.

I wouldn't be hopeful though.

cloud_dog

Adventurer30 wrote: »

Hi, I have a small problem with my bank. I have received a call about my recent transfer to overseas back home to my country (Hungary).
Do the bank have the right to reclaim money because of an exchange rate error? - the amount was exchanged according to mid term rate which was higher than the one the bank originally offered me....I have already used the money (my money...) and now they want to set an appointment day to discuss how much I have to pay back to them - i find it quite upsetting!
Does anybody know what the official steps should be in such a case? Do I have any obligation? It is not my fault that they have made a mistake, is it not?

Thanks
Adventurer30

It will depend on the amount.

I have no legal background but....... In similar circumstances regarding endowment payouts where the insurance company has made a mistake and paid more than they should have the courts often take the position of "is it reasonable for the individual to have realised a mistake had been made"

So, it depends on the amount. If you transferred £500 and you recieved 1,700,000 Hungarian Forint instead of 170,000 (approx) that is obviously an error. If you received 175,000 then it is probably reasonable for you to think you got a sligghtly better transfer rate and it was all kosher.

As I said it depends on the amount of the error. Was it obvious an error had been made?

EDIT: My initial stance would be that it was not reasonble for me to know an error had been made (assuming it really wasn't obvious).

Adventurer30

cloud_dog wrote: »

It will depend on the amount.

I have no legal background but....... In similar circumstances regarding endowment payouts where the insurance company has made a mistake and paid more than they should have the courts often take the position of "is it reasonable for the individual to have realised a mistake had been made"

So, it depends on the amount. If you transferred £500 and you recieved 1,700,000 Hungarian Forint instead of 170,000 (approx) that is obviously an error. If you received 175,000 then it is probably reasonable for you to think you got a sligghtly better transfer rate and it was all kosher.

As I said it depends on the amount of the error. Was it obvious an error had been made?

EDIT: My initial stance would be that it was not reasonble for me to know an error had been made (assuming it really wasn't obvious).

Thank you for your quick response. Yes it was quite substantial, and the difference between the two rates is over £1000 which I do not think they let go. The only thing I hope that we can come to a conclusion which would be fare for both of us. Personally I do not feel responsible as it was not clear that they have made a mistake with exchanging the money. Besides I have signed the paper with them on which we have agreed on the exchange rate...I just had to tell it to somebody, now I am a little bit relieved. Thanks again