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What happens when money is paid into your account in error??

I would really appreciate some advice on this & I know it may sound slightly daft!!

My previous employer deposited a five figure sum into my bank account in error yesterday!!

They have contacted me to let me know and to ask if they could have the money back.

Question number 1 - morally, I feel I have to pay the money back but legally, do I have to?

Question number 2 - when they emailed me to notify me of their error, they included a number of people on the distribution list and the content also included my bank account number and sort code - what are the implications of them doing this??!!

Any advice would be gratefully appreciated.
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Comments

  • magyar
    magyar Posts: 18,909 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    (1) Yes. You could legally keep any interest earned, but you do have to give the money back. You could be a little slow, however.

    (2) This is a staggering breach of your confidential information as I can't see why anyone needs to know (other than the person entering the info into your payroll), although in practice very little is likely to happen: all that knowing your bank account and sort code means is that people can pay money into your account (as they demonstrated!)
    Says James, in my opinion, there's nothing in this world
    Beats a '52 Vincent and a red headed girl
  • Thank you for your help on that one!

    I will be writing a very stern email to the Financial Director tomorrow to notify him how unhappy I am with my bank details being disclosed and will send a cheque (will send it 2nd class though!!)
  • magyar wrote:
    (2) This is a staggering breach of your confidential information as I can't see why anyone needs to know (other than the person entering the info into your payroll), although in practice very little is likely to happen: all that knowing your bank account and sort code means is that people can pay money into your account (as they demonstrated!)

    Also someone can start a direct debit with this information.

    To start DD all that is needed is Sort Code and Account number. So someone could in theory with draw money from you account with this information.
    They do not need to know you name or address, it really that bad just sort and account number!
  • JoeyG
    JoeyG Posts: 1,392 Forumite
    Part of the Furniture Combo Breaker
    Do they not need your signature for a direct debit?
  • They do not need your signature to start a DD. You can start a DD over the Internet or Phone with no paper work ever signed.

    Anyway a signature is no form of security, also banks have never been pro-active on check signatures. They only look at signature once someone complains.
  • Wyndham
    Wyndham Posts: 2,615 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    First of all, the money isn't yours. They have realised the error and have asked for it back. By telling you they know it isn't yours, and by the fact that you couldn't really think it was yours, then legally you have to give it back, as well as morally. However, you COULD (and I don't really suggest you should, only that it is a possibility) say that you have used the money and can only pay back slowly - say £100 per month :)

    On the matter of disclosure - that's disgraceful. I'd get in touch with Finance but also whoever deals with Data Protection for your employer (probably internal) and complain to them as this is a breach of the Data Protection Act.
  • magyar
    magyar Posts: 18,909 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    aMIGA_dUDE wrote:
    They do not need your signature to start a DD. You can start a DD over the Internet or Phone with no paper work ever signed.

    Anyway a signature is no form of security, also banks have never been pro-active on check signatures. They only look at signature once someone complains.

    You are technically correct, but this is completely auditable and under the Direct Debit guarantee, your bank would have to refund any charges made erroneously.
    Says James, in my opinion, there's nothing in this world
    Beats a '52 Vincent and a red headed girl
  • hjb123
    hjb123 Posts: 32,002 Forumite
    They certainly shouldnt have put the account details in an email - but who are the people that are included on the email - are they in the finance department or people that would need to know what was happening? (okay they still shouldnt have done it though!)

    I think though that you are doing the right thing in sending them the money back as both you and they have reaslised the mistake straight away
    Weight Loss - 102lb
  • carol_a_3
    carol_a_3 Posts: 1,104 Forumite
    Part of the Furniture Combo Breaker
    aMIGA_dUDE wrote:
    They do not need your signature to start a DD. You can start a DD over the Internet or Phone with no paper work ever signed.

    Anyway a signature is no form of security, also banks have never been pro-active on check signatures. They only look at signature once someone complains.

    Anyone can get your sort code and account number from a cheque you have written them, banks would need a signature or some sort of secure ID on phone or internet, you would need to be logged into the person's account for example to just set up a direct debit using them alone.

    I think what you suggest is the best course of action, write them a cheque but take your time sending it so you get a bit of interest and complain about the breech of security regarding your information.
  • Id tell them ill send a cheque, then wait till they state they havent recieved it, say that it mustve got lost in the post & then send one, you will get a little more interest lol
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