money paid into account by error

meeemee

hello, we run a small ltd company and we have received a payment from one of our custmers by bacs which was meant for another comapny, we ahave been in contact with then to tell them we have recived a remittence advice and money by mistake, they suggested a credit note to cover thrie mistake, but now the are wanting a cheue sent back for the full amount and will not accept a credit note. Where do i stand legally over the amount hat has been put into my business account by error, do i need to pay it back by cheque? many thanks

no-oneknowsme

meeemee wrote: »

hello, we run a small ltd company and we have received a payment from one of our custmers by bacs which was meant for another comapny, we ahave been in contact with then to tell them we have recived a remittence advice and money by mistake, they suggested a credit note to cover thrie mistake, but now the are wanting a cheue sent back for the full amount and will not accept a credit note. Where do i stand legally over the amount hat has been put into my business account by error, do i need to pay it back by cheque? many thanks

Cant you just send it back to them in the same manner you received it?

paulwf

Why not just zap it back by BACS? That will give you the best paper trail on your accounts as well. Why does it matter where you stand legally, it sounds like they made a mistake so why not give them their money back?

I can't see any reason to annoy a customer, and sure you might lose a couple of quid through banking charges but if its a one off does it really matter that much? Perhaps get them to buy you a beer next time you do business?

Send the BACS or cheque over, move on and spend your time making money

Savvy_Sue

I agree, a credit note would get very messy in their accounts and yours. I know it was their mistake but if you want to keep their business I'd do as they asked and send a cheque, or do it by BACS if you prefer that.

jexygirl

id just bacs it back, no reason not to. Its a mistake on their part, you provided no service for it, and I assume are not owed by them so see no issue in returning it asap to avoid any embarassment and retain good customer relations. Bacs back leaves a clear paper trail as well for tax purposes.
Jex

moneypooh

Depending on your bank account, it's cheaper to send a BACS, even if you have free banking, you've still got to post it.

martindow

I think you should pay it back as soon as possible. I would be furious if I had made a mistake and the company sent the money told me I should treat it as a credit note. I would do my utmost to avoid dealing with them again and would not hesitate to tell other people what had happened.

Getting a bad reputation is much easier than cultivating a good one.

meeemee

Hi all tahnmks fro your replys, all paid back into their account now via bacs!

Premier_2

martindow wrote: »

I think you should pay it back as soon as possible. I would be furious if I had made a mistake and the company sent the money told me I should treat it as a credit note. I would do my utmost to avoid dealing with them again and would not hesitate to tell other people what had happened.

Getting a bad reputation is much easier than cultivating a good one.

As I understood it, it was the customer that requested the supplier (the OP) to issue a credit note.

My business basis is that our customers are always king, and in this case if a customer sent us money and requested a credit note ilo repayment, we would gladly oblige.
I'd always prefer the money in our account, even if it's not really ours. By issuing a credit note, it would then be ours

I only wish we had customers who were prepared to send us money without supplying any service to them :cool: If you have customers in this situation that you don't wish to deal with, please point them towards us!

Nice to see the OP has sorted this matter out amicably with their customer now, anyway

p-ch1982

so it's all sorted then.