Paid Dividend By Mistake

robwillsco

About 10 years ago my father died and I inherited some of his investments. Just as these investments were being transferred to me an investment company started paying money into my account every month. I assumed that this was part of the inheritance and thought no more about it. I (not the banks or investment company) recently discovered that I was being paid this money, about £7000 in total over the years, by mistake. The investment company had no record of my name or my father's name. It turns out that either their bank or possibly my bank was paying the money to me in error. Can they demand all this money back I one lump sum? My circumstances have now changed and with two children and a mortgage writing such a large cheque will be difficult!

sorcerer

Yes they can demand their money back in one lump sum, since it was their error, they might be kind enough to spread these payments over a year, maybe,


Whatever you do don't spend the money, since this could be considered to be theft, especially if your intention is to deprive the company of their money.

ChesterDog

This might be of intetest to you.
http://www.thisismoney.co.uk/money/experts/article-2765080/30-000-accidentally-paid-share-trading-account-TD-Direct-Ive-lost-money-want-back.html

eskbanker

I have no idea whether it would work but you could try arguing that as it took them ten years to pay you the money you should have ten years to pay it back!

princeofpounds

It is not theft. Theft is the intention to permanently deprive someone of property. There is no such intention here.

They can demand it back all in one go, but it does not mean they will get it.

The basics of the law on this area are here:

http://www.tltsolicitors.com/resources/publications/bankingandlenderservices/bankingandlenderservicesarchive/moneypaidbymistakefeb10

You probably haven't changed your position in good faith given you didn't investigate the source of the money and find it to be plausible.

But I should imagine that it would be possible to negotiate a payment plan.