Can banks claw money back which they paid in error?

Blue_Parrot

My husband has power of attorney over an elderly relative's financial affairs. This relative had a Bond in the UK which paid out £600+/month to her post office account in Europe, transferred thereto by Barclays International in Jersey.

Financial Advisor wrote to us in June, warning that the Bond funds had been exhausted. We advised elderly relative.

Elderly relative now says that Barclays International (Jersey) have shunted through 2 x monthly £600+ for August and September. It is in her (Europe) post office account. Yet there are no funds from which to shunt money through.

We have had no letters from the Bond company or the middle-man Barclays International to say that they're drawing money from a depleted account.

My instinct is that Barclays International will wake up and claw the money back. We do not understand how they can keep sending money and where it is coming from, since the Financial Advisor's sums are correct: a previous annual statement from the Bond company confirms this.

Do you think I'm right, that they can, and will, do this?

Thanks for any informed opinions.

ihateyes

if the bank pays money in error then they can claw it back. dont send it as it is classed as theft.

if an individual pays money from their account to someone elses in error then its totally different, and the benefactor has to agree to hand the money back

pqrdef

Presumably there's an overdraft piling up. A standing order doesn't stop being paid when there are no funds. It only stops being paid when the overdraft limit is reached.

jambosans

pqrdef wrote: »

Presumably there's an overdraft piling up. A standing order doesn't stop being paid when there are no funds. It only stops being paid when the overdraft limit is reached.

Bonds do not have overdraft facilities. The OP stated the money was being fed from a bond via Barclays International to a European post office account.

@OP, if Barclays have made mistake they can and will recall the money. The oddity is where this £1200 has come from if the bond is depleted?

Blue_Parrot

For the sake of completion, the Elderly Relative was mistaken in assuming that the money had come from the bond company, which has now been established. We do not know where it came from, but that is a different matter.

Thank you (all) for replying.