Paid into incorrect bank account - now short!

JulesyW

Hi there,

I changed my bank account details with my employer in time for my monthly wage to be paid into the new account (for my pay paid on Feb 1st) - however, my employer did not pay into my new bank account and has admitted this was an error on their part.

My issue is that due to this, my pay went into my old bank account and some of it (£250) covered my unauthorised overdraft amount which I was not intending to pay from my wage. (Bit of background - I have entered into a debt management programme with Payplan and the old bank account and its overdraft have been added to the plan).

I have asked my employer if they are prepared to compensate me due to my not having access to £250 of my wage due to an error on their part and they have said no. I am very cross - surely I should be entitled to something?

Any advice much appreciated!

marliepanda

They shouldnt have to compensate because of your debts. They made a mistake, your debts are still yours.

Id have advised using the switch service but due to your debt you wont be able to, however have a tight month and think thats one less thing to worry about in your DMP.

jobbingmusician

I am not an expert on repayment plans, but is it actually legal for your old bank to take more towards the debt than they are entitled to under the PayPlan arrangement? I would be on the phone asking PP this question (you could also try asking on the DFW board here - someone is likely to know.)

marliepanda

jobbingmusician wrote: »

I am not an expert on repayment plans, but is it actually legal for your old bank to take more towards the debt than they are entitled to under the PayPlan arrangement? I would be on the phone asking PP this question (you could also try asking on the DFW board here - someone is likely to know.)

Pay plan is usually a voluntary arrangement with creditors rather than an official legal contract. I’m assuming this is a recent plan as the bank account change is so recent so the bank may not have ‘agreed’ to this plan.

John-K_3

jobbingmusician wrote: »

I am not an expert on repayment plans, but is it actually legal for your old bank to take more towards the debt than they are entitled to under the PayPlan arrangement? I would be on the phone asking PP this question (you could also try asking on the DFW board here - someone is likely to know.)

OP has spent the bank’s money without their permission, and is playing hard-ball about paying it back, but has, unfortunately now done so inadvertently.

Legally and morally that money is not theirs, and the bank will likely keep it.

Look at it this way, if someone owed you money, welched on the deal, and then sent it to you some time later by mistake, would you just smile and hand it back to them?

ScorpiondeRooftrouser

You don't "not have access to £250". You are £250 less in debt than you were. Your net worth is unaffected.

elsien

You are entitled to the wages you have earned. These have been paid to you in full. Not a snowballs chance in hell of any compo, but nice try.

John-K_3

elsien wrote: »

You are entitled to the wages you have earned. These have been paid to you in full. Not a snowballs chance in hell of any compo, but nice try.

Yes, the asking for compensation from the employer was a nice touch.

In my business they would likely (and rightly) be escorted from the building if they revealed that they were not honouring their debts elsewhere, not paid compensation.

Comms69

John-K wrote: »

Yes, the asking for compensation from the employer was a nice touch.

In my business they would likely (and rightly) be escorted from the building if they revealed that they were not honouring their debts elsewhere, not paid compensation.

You own a bank?


Or just fancy being taken to tribunal?

Xbigman

Ask your employer to call the transfer back and send it to the correct account. If they refuse, or more likely tell you they can't, then you have no option but to accept the situation. I assume you have checked the old account is still active and has accepted the money.

For those who think its clever to be sarcastic. This is a genuine problem because the OP has set up a payment plan which will be £250 short this month so could collapse before it really gets going. At least the OP has my sympathy.



Darren

John-K_3

Comms69 wrote: »

You own a bank?


Or just fancy being taken to tribunal?

My busines, as in the trading desk I manage.

The FCA has a “fit and prior person” requirement, which includes running your financial affairs well. An arrangement to pay would probably be reason to let someone go from a front-office position.