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Bank sent cheque for refund then wanted it back
firely2327
Posts: 135 Forumite
Hi folks
Posting on behalf of a friend who is worried about her daughter. The daughter has a loan with a bank and a while back (month or two I believe) sent a cheque saying they'd overcharged interest or something so were giving her a refund. She has spent this money. A week or so ago the bank contacted her to say the cheque was an error and they're demanding it back. I'm not 100% sure but I believe the letter indicated that she may still owe something on the original loan too.
Just wondering what rights she has on this. She's a mum to two young kids and was made redundant due to employer closing a couple of months back so she'd not flush with cash and is extremely worried at this unforeseen debt. Since it wasn't a case of the bank putting it into her account but sending her a cheque is the rule about paying it back still standing, and if so can they apply any penalty charges/interest or demand a repayment in a particular timeframe?
Thank you
Posting on behalf of a friend who is worried about her daughter. The daughter has a loan with a bank and a while back (month or two I believe) sent a cheque saying they'd overcharged interest or something so were giving her a refund. She has spent this money. A week or so ago the bank contacted her to say the cheque was an error and they're demanding it back. I'm not 100% sure but I believe the letter indicated that she may still owe something on the original loan too.
Just wondering what rights she has on this. She's a mum to two young kids and was made redundant due to employer closing a couple of months back so she'd not flush with cash and is extremely worried at this unforeseen debt. Since it wasn't a case of the bank putting it into her account but sending her a cheque is the rule about paying it back still standing, and if so can they apply any penalty charges/interest or demand a repayment in a particular timeframe?
Thank you
0
Comments
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She'll need to pay it back, but they should agree to a reasonable timeframe.
She'll need to speak to them.0
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