MSE News: Sent money to the wrong account? Now it should be easier to get it back

edited 30 November -1 at 1:00AM in Budgeting & Bank Accounts
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MSE_LukeMSE_Luke MSE Staff
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edited 30 November -1 at 1:00AM in Budgeting & Bank Accounts
If you've sent money electronically to the wrong bank account, you'll now be given more help to get it back...
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'Sent money to the wrong bank account? Now it should be easier to get it back'
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  • ConsumeristConsumerist Forumite
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    But if the money is sent to an account where funds are not available – for instance, if the account is in an un-arranged overdraft – then you're unlikely to be able to get your money back. So it's vital you inform your bank as soon as you become aware of a possible error
    Is this because the banks don't want to lose the typical £5 per day charges it has been heaping on its overdrawn customers in an un-arranged overdraft? :eek:

    Yes, I agree we should be more careful when sending money. :T
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • colstencolsten Forumite
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    Happy times! I can see a whole lot of small time fraudsters springing into action. Shortly followed by a whole lot of newbie threads on here, complaining that their bank had advised them that their account would be closed "for no reason", and also that they can't get any account at any bank "for no reason" (conveniently omitting to mention that they have a first or second party fraud CIFAS marker).

    It's good to see though that most genuine mistakes can be corrected a lot faster.
    What if my money has already been spent?

    According to a Faster Payments spokesperson, if money is mistakenly sent to an account and that account is in credit or in a pre-arranged agreed overdraft, it should be returnable.

    But if the money is sent to an account where funds are not available – for instance, if the account is in an un-arranged overdraft – then you're unlikely to be able to get your money back
    .
  • colstencolsten Forumite
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    Is this because the banks don't want to lose the typical £5 per day charges it has been heaping on its overdrawn customers in an un-arranged overdraft?

    You are not making much sense. The article says
    But if the money is sent to an account where funds are not available – for instance, if the account is in an un-arranged overdraft – then you're unlikely to be able to get your money back

    I.e. the receiving bank would not put the receiving account into an unarranged overdraft. And therefore would not be able to charge them £5 a day etc. for it.
  • ConsumeristConsumerist Forumite
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    colsten wrote: »
    You are not making much sense. The article says

    I.e. the receiving bank would not put the receiving account into an unarranged overdraft. And therefore would not be able to charge them £5 a day etc. for it.
    The article says:
    But if the money is sent to an account where funds are not available – for instance, if the account is in an un-arranged overdraft – then you're unlikely to be able to get your money back. So it's vital you inform your bank as soon as you become aware of a possible error
    To me that says the account is in an un-arranged overdraft and therefore charges are being made, are they not?
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • ceredigionceredigion Forumite
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    Either way all that is needed is a computer system that auto rejects if the name/sort code/ account number don't match up .
  • PoundPound Forumite
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    ceredigion wrote: »
    Either way all that is needed is a computer system that auto rejects if the name/sort code/ account number don't match up .

    There's many reasons why a name someone is known by isn't the name that's on their bank account.
  • ConsumeristConsumerist Forumite
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    I don't see any reason why money cannot be recovered from any account. The banks, themselves, recover money which they have credited to an account in error - no 20-day delay involved in those cases.

    I understand that there is some cost involved in recovering such amounts so I don't see why some sort of "recovery" charge couldn't be made (and we know how the banks love to charge at any opportunity they get). That too would help to encourage us, their customers, to take more care.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • BallardBallard Forumite
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    ceredigion wrote: »
    Either way all that is needed is a computer system that auto rejects if the name/sort code/ account number don't match up .

    There are simply too many options.

    For example, the following for a joint account:

    Mr smith
    Mr I smith
    Mrs smith
    Mrs h smith
    Ian smith
    Helen smith
    Mr and Mrs smith

    It's simply impractical.
    I hate verisimilitude.
  • masonicmasonic Forumite
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    I don't see any reason why money cannot be recovered from any account. The banks, themselves, recover money which they have credited to an account in error - no 20-day delay involved in those cases.

    I understand that there is some cost involved in recovering such amounts so I don't see why some sort of "recovery" charge couldn't be made (and we know how the banks love to charge at any opportunity they get). That too would help to encourage us, their customers, to take more care.
    If I was selling something, and someone paid me by bank transfer, and I therefore sent the item believing the money was mine, and then the buyer claimed to their bank that they made a typo in the account details and reclaimed the payment without giving me the time and opportunity to fight the fraudulent claim, I'd be livid.

    What you are suggesting would destroy trust in the bank transfer system. Payments should only be reversed after giving all affected parties plenty of time to respond to a claim.
  • colstencolsten Forumite
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    Ballard wrote: »
    There are simply too many options.

    For example, the following for a joint account:

    Mr smith
    Mr I smith
    Mrs smith
    Mrs h smith
    Ian smith
    Helen smith
    Mr and Mrs smith

    It's simply impractical.

    The name on many of my FPs is something like "My account 6789", whilst the actual name on the receiving account is "Mrs A. Barnes" or something similar. No program on God's earth could possibly match the name on the FP with the account name in any reliable form.
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