Bank Error in my favour, what should i do?!

svmitche

If anything think of the possibility of prosecution. I know the sums are vastly different, but the precedent is the same as with this case:

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

She knew the money was not hers and blew it anyway.

The bank WILL ask for the money back, so leave it for a while in case they just make a withdrawal on your account and if they do not then ok you could try and make some interest from it in a savings account or ISA if you wish, but be prepared to surrender it immediately when they come calling!

RayWolfe

Badger_Lady wrote: »

I think of myself as a very honest person, but I wouldn't volunteer to return the money either

Now if that's not a contradiction, I don't know what is!
Clearly you are NOT the former if you believe the latter.

Mikeyorks

Bit too obvious, folks.

Another wind up merchant.

siranswerer

M_Thomson wrote: »

You should never remove money paid in by mistake to an account as the bank is within its rights to take it back anytime they like even if it means making the account overdrawn.

can the bank do this? surely it would be against the law for them to withdraw money from your account without youre authorisation?

Mikeyorks

Did they need authorisation to erroneously put it in, then?

Richard019

Firstly I would definately tell them but I wouldn't be making any excessive effort to do it.

If you're a long time user of this site I'm guessing you've got an account with a decent rate of interest (8% pre tax, 6.4% after?) so the money sitting in that one isn't exactly 'wasted' in the short term. Leave it there until you're next near the bank, I wouldn't make a special trip for it. It's probably easier to deal with the staff that know what's been going on first than it is to go through it all on the phone. They'll sort out the money and by rights (but you might be lucky) the excess interest you've earnt because of it.

Consider it the same as if you found someone's purse/wallet on the bus on the way home from work and decided to return it to them. If you were going out that night you wouldn't change your plans to return it to them asap. But the next day when you got up and were passing their area you would take it then. As far as the interest is concerned, you wouldn't expect a reward from them but if you got one you wouldn't say no. (I expect views on whether or not people would do this 2nd case will vary by age/appearance, not because of their morals but because of the fear of being accused of stealing it in the first place)

thespudman

I would let them know, they will find out eventually when they come to reconcile their MISC account. Also the cashier that gave you the money could get into trouble if the MISC account doesnt balance ( ive been in that situation a couple of years ago ). Just to the honest thing and return the money, it was good of them to trace it and give you 500 in the first place.

Scousebird_2

lorwiggins wrote: »

My bank made a mistake the other day as well, it's only £20 but I'll be damned if I'm going to point it out to them. At the end of the day they won't thank you for it and they have probably had a load of money of yours illegally through bank fees anyway, so I don't see the difference. If that means I'm giong to be reincarnated as an ant then so be it, I'll be taking my £20 thank you very much! :j

I'm prob gonna get flamed here but I mean no offence- I just noticed-people are convinced that bank charges are illegal-it has not finished being decided in court yet and besides, if a bank tell you upfront in the terms and conditions that you get charged for spending money that isn't yours and you sign to agree, amongst other conditions, then how are banks exactly breaking the law-this is a question to be discussed not a gripe...i'm just curious as to peoples opinion on this??!!

Oh and in relation to post subject-give the money back otherwise it's deception of you willingly take it out and put it in savings to make it work for you-sadly it's not your money and you really should return it-morally it's wrong to keep it whether it's a big corporate company or your Mum's...it's not right!!!

RayWolfe

Not too many morals on this board, I'm afraid!

ShelfStacker_3

Scousebird wrote: »

Iif a bank tell you upfront in the terms and conditions that you get charged for spending money that isn't yours and you sign to agree, amongst other conditions, then how are banks exactly breaking the law-this is a question to be discussed not a gripe...i'm just curious as to peoples opinion on this??!!

There is actually a legal basis. As the T&Cs form part of a contract, the £30-odd is part of it. Penalty clauses in contracts are illegal; you can't write into a contract that if someone crashes your car they should give you three times the car's purchase price, as that clause isn't fair and is just intended to punish one of the parties to it. You're only allowed to write into a contract what your actual costs would be, maybe a little bit on top (proportionally).

It costs a bank maybe £2 to administer an unauthorised O/D, yet they charge £30, making the other £28 an illegal penalty clause (i.e. it's intended to punish you).

I personally think that banks should be allowed to levy fees, maybe £5 a time - people shouldn't be allowed to manage their finances badly and have their bank pick up the tab - but £30 is ridiculous.