Bank transfer error

l_emony

Hi there,

I wonder if you can help. I recently gave my bank details to my fianc! so he could transfer some money into my account for our wedding fund. Unfortunately, in my stress I copied the details from an email chain (thinking that I had used them before and there were no typos) but I unwittingly gave him my old lodger's bank account details instead. My fianc! transferred the money to this account (Barclays to Lloyds) with my name on the transfer and the money was accepted. I have tried contacting my ex-lodger to ask him to transfer the money back to me but he has been resolutely silent. The bank has said they will send us a form to deposit with Lloyds but that the recipient can decline to return the funds. Please could you advise me on the best course of action and what rights, if any, we may have.

With very best wishes
Emily, a rather anxious bride!

bengal-stripe

l_emony wrote: »

Please could you advise me on the best course of action and what rights, if any, we may have.

I'm afraid, there is very little you can do if the recipient just closes down the hatch. You've sent a payment to a certain account and sorting code. The name quoted on the transfer is not taken into account. (Just like a letter, which gets delivered to the address on the envelope, not the name.)

You cannot claim the money back, saying it was a mistake. (If this were possible, someone might buy something on-line, pays by transfer and as soon as they get notification the item is in the post, claim the money back as 'mistake').

If the recipient does not pay the money back voluntarily, you can try the police, it is a criminal offence. The police might not want to touch it, particular if it is a small-ish amount. Then you will have to go to the Small Claims Court and instigate proceedings.

It is always a good idea to send a small 'test payment' to a newly set-up payee.

agrinnall

You're in a better position than most people who post about this because they have no idea who the money has gone to, whereas you do. The problem is that the money was transferred deliberately, so the bank can't do much more to help than they have already said. If that action doesn't get the money back then you will need to approach your ex-lodger directly to ask for it back. Worst case is that you might have to issue legal proceedings and take it to court, where you'd have to argue that the ex-lodger would have no reason to expect any money to be given to them - which may be easier as it's come from your fiance not you, assuming he wasn't involved in the lodging relationship.

I'd suggest you wait to see what happens with the bank claim, if it's successful that's great, if not come back and ask for more help.

matttye

*ignore me - being silly*

Wywth

l_emony wrote: »

Hi there,

I wonder if you can help. I recently gave my bank details to my fianc! so he could transfer some money into my account for our wedding fund. Unfortunately, in my stress I copied the details from an email chain (thinking that I had used them before and there were no typos) but I unwittingly gave him my old lodger's bank account details instead. My fianc! transferred the money to this account (Barclays to Lloyds) with my name on the transfer and the money was accepted. I have tried contacting my ex-lodger to ask him to transfer the money back to me but he has been resolutely silent. The bank has said they will send us a form to deposit with Lloyds but that the recipient can decline to return the funds. Please could you advise me on the best course of action and what rights, if any, we may have.

With very best wishes
Emily, a rather anxious bride!

You have the right to have the money returned upon request (possibly less a small amount to cover the recipient's reasonable costs in doing so)

Perhaps a county court summons might produce a response from the ex-lodger

Start, as always, with an LBA (Letter Before Action)

ic

This was covered on watchdog recently: http://www.bbc.co.uk/programmes/b006mg74/features/bank-digit-errors

Fundamentally, treat it the same as posting cash through the wrong letterbox - you're at the mercy of the person you wrongly gave the cash to.

pqrdef

ic wrote: »

Fundamentally, treat it the same as posting cash through the wrong letterbox - you're at the mercy of the person you wrongly gave the cash to.

But it isn't the same. I don't "put money in the bank", I lend it to the bank. The bank is under contract to repay me what I've lent to it, and the account statement is the IOU.

But if money appears on that statement and the bank is informed that I didn't put it there or have anything to do with it being put there, then there's no contract term which obliges the bank to pay me that money, i.e. allow me to withdraw it or spend it.

But the bank will pay me the money it doesn't owe me because the system is broken, it doesn't know what to do about it, and basically it can't be arsed.

dalesrider

pqrdef wrote: »

But the bank will pay me the money it doesn't owe me because the system is broken, it doesn't know what to do about it, and basically it can't be arsed.

I unwittingly gave him my old lodger's bank account details instead.

What is broke.....

Other than the OP using the wrong details.

Fault does not lie with the bank in this case.
Yes. The bank can request the payment back. But if the other party does not respond. Then there is nothing more they can do.

We only have the OP's word, as do the bank that it was a error. Perhaps the OP owes said person money and now has decided that they want it back after paying.

pmduk

You don't lend money to a bank you deposit it with them. They can do whatever they want as long as they repay it when you want, within the T&Cs. A statement is not an IOU, just a record of transactions.

matttye

It's theft if the recipient refuses to give it back, knowing it's not theirs.

Archi_Bald

matttye wrote: »

It's theft if the recipient refuses to give it back, knowing it's not theirs.

How would you prove that they know it's not theirs? What if they say they have been promised it (verbally) and it's only right that they now did receive it?