Can investment bank claw back Dividend they paid to me in error?

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  • dunstonh
    dunstonh Posts: 116,460 Forumite
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    If you refuse to repay and keep money that you know is yours then it could lead to you being charged with retaining wrongful credit' under the Theft Act 1968.

    So, its not harsh to mention it.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • IanManc
    IanManc Posts: 2,095 Forumite
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    Malthusian wrote: »
    Given this is a dividend from an AIM company, which suggests a) low yield b) the OP will have a relatively small proportion of his assets invested in it (hopefully), the dividend is unlikely to be a huge sum of money for the OP, and it would take some extremely crass mismanagement for them to be unable to lay their hands on enough cash to repay it without paying a penalty. It wouldn't be HSBC's problem.

    The simplest solution for HSBC in that scenario would simply be to record their cash balance as negative and wait for further dividends to come in or for the OP to make a withdrawal, at which point the money would be recovered. HSBC may have a clause in the T&Cs which says that if the cash balance is negative, they can sell down the OP's assets without permission to correct it. If not, they just have to wait.

    If the OP withdrew all their money off the platform (including the dividend) in the hope that HSBC wouldn't be able to recover the mistaken payment, that would be blatant theft by finding.
    Malthusian wrote: »
    No, but it would be theft by finding if he kept it.

    It wouldn't be theft by finding, blatant or otherwise.
  • John-K_3
    John-K_3 Posts: 681 Forumite
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    IanManc wrote: »
    It wouldn't be theft by finding, blatant or otherwise.
    It would certainly be theft though.

    http://news.bbc.co.uk/1/hi/magazine/6966683.stm
  • IanManc
    IanManc Posts: 2,095 Forumite
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    John-K wrote: »
    It would certainly be theft though.

    http://news.bbc.co.uk/1/hi/magazine/6966683.stm

    Yes, it would be retaining wrongful credit, as Dunstonh noted in Post 12, which I thanked.
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