Made a bank transfer to the wrong account

Tomasulo

Hello,

I accidentally made a series of payments to an unknown account whilst trying to transfer money between two of my own accounts. When making the first payment, I mistyped the account number such that two of the digits were the wrong way around. Before I realised my mistake, I ended up making three payments totalling over several thousand to the same account (The system saved the account details from the first payment). I know, I should have checked, but I didn't.

I contacted Lloyds, the bank I used to send the money, and they followed the procedure of contacting the recipients bank (Santander) to ask for the return of the funds. They came back and told me that Santander have attempted to make contact with this person, but he/she has not responded.

I believe I have very good evidence that these payments were made in error, so I contacted Santander directly and explained the situation. They told me they couldn't do anything if the person does not give them permission to return the funds. It has been suggested I take legal action via the small claims court, but I only have this persons bank details and neither bank is offering up the recipients name or address.

Does anyone have any advice? I really don't know what to do right now. From what I've read, it seems like the money should still be legally mine and it would be illegal for this person to refuse to return it or knowingly spend it.

Thanks

jonesMUFCforever

When you transfer from one Lloyds account to another Lloyds account in your name the numbers are pre filled and all you need to do is choose the account number to transfer to. There is no need to type any account number.
If you have deep pockets see a solicitor about getting a court order to get the name and address.
New rules have come in with mistakes like this ie the bank no longer needs to ask the receipient to debit back credits but if the money has been spent - you know the answer.

At the end of the day neither bank have made any mistakes - so neither will refund you.

Tomasulo

Thanks for the reply. I was sending money from my Lloyds account to my Santander account, not another Lloyds account.

I have looked into what you've said and it appears you are correct. From early 2016 the law states:

Where your bank finds clear evidence of a genuine mistake, they will contact the receiving bank on your behalf with a request to prevent the money being mistakenly spent. As long as the recipient does not dispute your claim, you will subsequently receive a refund of the protected funds within 20 working days from when you notified your bank.

I would say that not responding to the banks efforts to make contact would be equivalent to not disputing the claim.

Alternatively

In cases where the circumstances of the claim are not clear cut, your bank will still contact the receiving bank on your behalf. The recipient will be contacted by their bank to ask for consent to debit their account. No funds would be removed without the consent of the receiving customer.

This leads me to believe that Lloyds have not deemed my case as 'clear cut', or the person has spent/withdrawn all the funds.

Source: http://www.fasterpayments.org.uk/what-happens-if-i-have-sent-payment-wrong-place

agrinnall

I would say in this case that your first quote applies, and I would be advising Lloyds to proceed on that basis (and for them to advise Santander that they need to follow the rules). If necessary make a formal complaint.

https://www.lloydsbank.com/contact-us/how-to-complain.asp

jonesMUFCforever

The reclaim form is done on a best endeavours basis only. Lloyds will not refund however high up the chain you complain to.

My guess the money is long gone from the Santander bank.

GingerFurball_2

agrinnall wrote: »

I would say in this case that your first quote applies, and I would be advising Lloyds to proceed on that basis (and for them to advise Santander that they need to follow the rules). If necessary make a formal complaint.

https://www.lloydsbank.com/contact-us/how-to-complain.asp

All Lloyds can do is inform Santander of the error, Lloyds aren't responsible for the return of the funds.