Inheritance paid to the wrong person. Now demanding money back! Help!!!

Dragon83

This is probably in the wrong section of the forum, but I'm unsure where to post it. I have a friend who is married with a baby, last year she had around £6000 put in her bank account by some solicitors in Scotland. When she queried it, she was told it was inheritance and it was definitely hers. They were expecting a baby and both on low income, so she spent it. A few months ago she started receiving letters saying there had infact been a mistake, and she has to pay the money back or she'll be taken to court. She did see a solicitor who advised her to either file bankruptcy, which she cannot do as she would have to provide evidence of her outgoings and the bills go out of her partner's account. They told her if it goes to court she will only have to pay back £10 a month, however, as the court is in Scotland, she feels she can't afford to go and has now resigned herself to trying to pay it back. They are a low income family with a young child and she can't sleep through the stress and worry of it all. It seems very unfair to me that they gave her this money, and she even queried it and they now have to struggle because of somebody else's mistake. Does anyone know where she stands legally? For instance if she just ignores it and doesn't show up to court, are they likely to rule in her absence for £10 a month, or will she be stuck with court fees? Do bailiff's have any power with is or not as she didn't actually borrow anything? I hate how stressed out they are over this as it isn't really their fault. Any advice welcome. Thank you.

xylophone

She doesn't have the right to profit from the solicitor's mistake.

However, there has clearly been negligence on the part of the solicitor.

I would think that it is the responsibility of the solicitor to reimburse the real beneficiary immediately ( probably by calling upon his professional liability insurance) and of your friend to repay the solicitor by affordable instalments - she should write to the court if she cannot afford a trip to Scotland and explain her circumstances?

evenasus

When anyone is left an inheritance via a solicitor, they would always receive a letter from the solicitor detailing the inheritance.

Did she not even ask who the inheritance was from?

help4help2013

even if it was a mistake the money being paid to her the fact of the matter is it was not her money and they have every right to want it back.

if they have asked her to go to curt then she should go if she does not go the people who want the money back can ask the judge to rule by a judgement by default

£10 a month is not a lot of money considering they got £6000 it was not here money to begin with they should have to pay it all back

Poppie68

Did she know the person who she 'inherited' it from?
What happens if she ignores it and fails to turn up to court....well they will rule against her and most probably give her a CCJ and a or if they are homeowners she could have a charge against her house.There is also a chance of a baliff visit...she has benefited from someone elses mistake and will have to repay the money.

whitewing

How did she query it? Did she get anything in writing that it was her inheritance?

missapril75

whitewing wrote: »

How did she query it? Did she get anything in writing that it was her inheritance?

I would have thought this was crucial. Accepting money in good faith and all that.

NYM

I'm curious, how did your friend find the details of the Solicitors that credited her account? Payment references rarely disclose very much detail.

Did they write to her at her home address advising her of the payment ?



Keeping any money wrongly credited to your account, could lead to you being charged with 'Retaining wrongful credit'. The 1968 Theft act defines this as: "A person is guilty of theft if he dishonestly appropriates property belonging to another with the intention of permanently depriving the other of it".

It goes on to say that: "A person is guilty of an offence if:

(a) a wrongful credit has been made to an account kept by him or in respect of which he has any right or interest;

(b) he knows or believes that the credit is wrongful; and (c) he dishonestly fails to take such steps as are reasonable in the circumstances to secure that the credit is cancelled."


http://www.money.co.uk/article/1005023-can-you-keep-money-accidentally-paid-into-your-bank-account.htm#ixzz38Jz0HwKF

Dragon83

Clearly I need to speak to her more about it as I only have the bare bones of the story. Thank you for all of your responses, it's helped me to understand where she stands legally, so I can now try to advise her accordingly.

missapril75

NYM wrote: »

(b) he knows or believes that the credit is wrongful; and (c) he dishonestly fails to take such steps as are reasonable in the circumstances to secure that the credit is cancelled."

Presumably accepting the word of a solicitor responsible for making the deposit may count as not believing the credit was wrongful.

evenasus

missapril75 wrote: »

Presumably accepting the word of a solicitor responsible for making the deposit may count as not believing the credit was wrongful.

I doubt very much that would be accepted as an excuse.
She will have to pay the money back.