Bank Processing Error - In My Favour?

LuckyMan2013

Many thanks in advance for any responses.

I bank with Bank A and made an online payment over 2 months ago to a private individual who banks with Bank B. Due to a processing error, Bank B debited my account but then credited it with the same amount thus cancelling out the original debit. However, Bank B still credited the private individual's account. My bank, Bank A, sent me a letter that they'd received from Bank B asking for my co-operation to complete the payment by making a payment the the bank's administration account. Do I legally have to do this? Can my bank take money from my account and give it to Bank B or does Bank A have to carry the cost of their own mistake and thus I consequently benefit?

grumbler

Define 'legally'.
Technically the banks can't simply take the money from your account. That's why they sent you the letter.
If they decide to sue you, do you really think that you have a leg to stand on?

gt94sss2

Depending on the bank's T&C, his bank may even be able to take the money I suspect. They are just being nice by asking the OP to cooperate.

OP - just pay them the money - how would you like it if it was the other way around. As grumbler says you don't really have a leg to stand on.

Regards
Sunil

LuckyMan2013

Thanks for the replies grumbler and gt94sss2. The private individual hasn't lost out, it's Bank B. If it was the private individual I wouldn't hesitate to make the payment. However, it's not that the banks haven't shafted thousands of people in numerous ways over the years is it? Do you see them bending over backwards to "do the right thing"?

bengal-stripe

If you do not pay back the erroneously received money, bank B might well instruct a firm of solicitors to get the money back from you. Whether they will or will not do it, depends presumably on the amount in question. As you have no right whatsoever to keep the money, it is you who will have to pay the solicitor's fee; you might even end-up with a CCJ.

If bank B had not discovered their mistake for six years (Statute of Limitations), you could have kept the money, but as it has happened only two months ago you have no claim whatever.

LuckyMan2013 wrote: »

If it was the private individual I wouldn't hesitate to make the payment. However, it's not that the banks haven't shafted thousands of people in numerous ways over the years is it?

Nice one!

So it's not for selfish reasons you want to keep the money, but you are the champion of thousands of bank users. Are you going to share the dosh between everyone who had been "shafted" by a bank?

Archi_Bald

As it happens, I had exactly the same thing happen to me on May 1, and I just had letters this week from both, bank A and bank B. Both accounts involved are my own accounts. Bank A just forwarded a letter from bank B, politely asking me to make a payment to an admin account in bank B, and bank B wrote to let me know they had asked Bank A to ask their account holder to make the payment.

As I noticed the issue at the time, I knew that it was just a matter of time until they'd want the money back. So I paid it into the admin account of bank B yesterday.

Bank A = Santander
Bank B = Yorkshire Bank

LuckyMan2013 wrote: »

If it was the private individual I wouldn't hesitate to make the payment. However, it's not that the banks haven't shafted thousands of people in numerous ways over the years is it? Do you see them bending over backwards to "do the right thing"?

You are making yourself the judge over a bank, and decide you can fine them by enriching yourself? And you think there is anything legal about your idea? Dream on.

LuckyMan2013

Archi_Bald wrote: »

You are making yourself the judge over a bank, and decide you can fine them by enriching yourself? And you think there is anything legal about your idea? Dream on.

Ha, why not. The banks have done exactly the same in the past haven't they? I didn't say I thought it was legal did I? I asked for people's viewpoints :A

alanq

LuckyMan2013 wrote: »

I bank with Bank A and made an online payment over 2 months ago to a private individual who banks with Bank B. Due to a processing error, Bank B debited my account but then credited it with the same amount thus cancelling out the original debit. ...or does Bank A have to carry the cost of their own mistake and thus I consequently benefit?

It doesn't seem that Bank A made any mistake.

maninthestreet

LuckyMan2013 wrote: »

Ha, why not. The banks have done exactly the same in the past haven't they? I didn't say I thought it was legal did I? I asked for people's viewpoints :A

This isn't a game of Monopoly - do not pass GO, do not collect £200.

Stevie_Palimo

LuckyMan2013 wrote: »

Ha, why not. The banks have done exactly the same in the past haven't they? I didn't say I thought it was legal did I? I asked for people's viewpoints :A

Do the right thing and pay what is due, If this was the other way round and the bank had your money you would be kicking and screaming until you got it back.


Be a decent person and pay up.

xylophone

I asked for people's viewpoints

And you've had them - did you expect anybody to endorse what amounts to theft?