Long term over-payment error

misterlister

Hi all,

I'm having a problem, and after searching these and other forums, yet to find another similar case. I know credit payment errors are common but in my case it was a small amount, paid monthly over a long period of time - that I was completely unaware of.

I received a letter from my bank today informing me that, between March 2007 and October 2012 they had, due to a 'keying error', been paying £100 a month into an account of mine. Yes, that totals £6800.

I'm aware of the law on credits made in error, and fully intend to do the right thing, but there are a few complications.

Firstly, I was not aware of the error. I know £6800 is a considerable amount, but when you have several accounts, and constant transfers and payments in and out, it's extremely easy to miss £100 a month. Especially since, during a lot of this time period, I was a student and was having regular payments from family members, not to mention the student loan payments, grants from the University etc.

As you can imagine, the letter stated they 'require the funds to be returned', but at this time it's just not possible. I am not employed and have no means to repay their error.

The whole issue is causing me pathological levels of anxiety, and want to know where I stand legally. My first thought is to write to the bank and explain the situation truthfully, exactly how I have explained it here, and see what they say.

Would really appreciate and thoughts.

Thanks for reading

stclair

Come to some arrangement to pay the funds back

Have you not checked your bank statement since 2007?

CKhalvashi

This is going to be a difficult one to sort in your situation.

I'd write to the bank, asking for a situation of hardship to be looked at sympathetically, and offering to pay a nominal sum of, say, £1 a month whilst you get back on your feet. Agree after this, say, 20% of your disposable income (Rent + Council Tax + JSA rate), which will leave you in a reasonable living situation, whilst paying back over time.

Phone them to start, then confirm this in writing. It will show you're serious about sorting the matter, whilst leaving yourself enough money to live on, as legally required.

CK

Naf

I'd be surprised if you genuinely hadn't noticed; you must have been a very well off student to miss £100 a month.
Good advice above; given that its their error (and you have the admission in writing) they ought to be fairly accommodating.
Just make a reasonable offer, but move your primary banking elsewhere ASAP; and ensure they do nothing with this which could Affect your credit file!!

dalesrider

Best bet is to call into a branch or talk to them on the phone ASAP to show willing.

But just what is this payment.
Can't be a payment into a branch, not the same error month after month.
Perhaps this is something a Co paying you has raised a issue with the bank to contact you.

The bank will work with you to resolve. Not just say we want it back now....
Well unless you ignore the issue.

antrobus

misterlister wrote: »

.... My first thought is to write to the bank and explain the situation truthfully, exactly how I have explained it here, and see what they say..

I'd be inclined to do that, but to also make a complaint. As in how you've been relying on the bank to do its job properly, you spent the money in good faith, and how unfair it is that the bank's error has left you in the position of apparently owing them £6,800 when you're unemployed and have no realistic prospect of being able to repay this money in the forseeable future. Or something like that. And see what the bank says.

Making a complaint will mean that; (1) a different layer of management at the bank will have a look at the case (as in different from the one responsible for the error who are currently in backside covering mode); and (2) you can then later take it FOS and let them adjudicate.

Naf wrote: »

.., but move your primary banking elsewhere ASAP;

That's certainly worth considering. OP does not want to wake up one morning and find that they have a £6,800 overdraft with charges mounting.

innovate

I'd definitely not complain because that seems a very confrontational approach and may result in the bank not being willing to settle for an arrangement.

The OP will find it hard enough to get anyone believe he never noticed the extra monthly £100 in 5 years. Nobody can prove, however, that they didn't. Going out all blazing with a complaint would be taking the proverbial.

misterlister

Thanks for the responses. Just to clarify, yes of course I was aware of the payments, I just thought they were being made by a family member.

The letter indicated that it was a standing order that was meant to go in another account. They mentioned already 'refunding the customer' so would guess the person or people in question realised, and raised it with the bank.

Will get a letter of to the bank today.

Thanks again.

stclair

I wish I had a family member who paid me 100.00 every month and never ever mentioned it to me since 2007.

Could you post a copy of the letter sent to you from the bank blocking out your details of course.

Robisere

[QUOTE=stclair;58504389]I wish I had a family member who paid me 100.00 every month and never ever mentioned it to me since 2007.[/QUOTE]

That is exactly what we did (Though not that much) to help an Aspergers sufferer, our grandson, to get his qualifications and a job. Now he has a well-paid job, which he may never have achieved without our help. His mum is a single parent of two, works all hours, always has, to give her family what she can. However, she needed the help we could give. And it will all be hers (and her brother's) one day anyway.

MORAL: You have no idea why people do what they do for their own. You do not know the reasons or the causes and it is no business of yours anyway.

stclair

Robisere wrote: »

That is exactly what we did (Though not that much) to help an Aspergers sufferer, our grandson, to get his qualifications and a job. Now he has a well-paid job, which he may never have achieved without our help. His mum is a single parent of two, works all hours, always has, to give her family what she can. However, she needed the help we could give. And it will all be hers (and her brother's) one day anyway.

MORAL: You have no idea why people do what they do for their own. You do not know the reasons or the causes and it is no business of yours anyway.

I was making a passing comment "that I wish I had a relation who sent me £100.00 a month and never mentioned it"

I wouldnt read things out of context if I was you.

To be honest if I knew I was receiving a random £100.00 every month id question it.

Personally I dont beleive the OP in the slightest.