Rules/time limit on double pay out, incorrect payment from bank etc

topoftherock

Hi guys, I’m not sure if this is correct but I’ve read somewhere that if a bank pays you twice in error (e.g double PPI payout ) or makes an incorrect payment (e.g an overpayment of PPI In error ), the bank has up to 6 years to get the money back. If it’s more than 6 years, then the bank can not get their money back. Is this correct? Kind regards

societys_child

If it’s more than 6 years, then the bank can not get their money back

If you've not acknowledged the debt for 6 years they can't chase you through the courts, but the debt still exists . .
So it's possible they could still "get their money back"

mjm3346

topoftherock wrote: »

Hi guys, I’m not sure if this is correct but I’ve read somewhere that if a bank pays you twice in error (e.g double PPI payout ) or makes an incorrect payment (e.g an overpayment of PPI In error ), the bank has up to 6 years to get the money back. If it’s more than 6 years, then the bank can not get their money back. Is this correct? Kind regards

If the mistake is discovered and you fail to return the cash or offer an acceptable explanation for not doing so then it is a possible "Theft" offence and could be pursued as such (it is not a debt in terms of borrowed money and failing to repay it which is where 6 years can come into play.)

topoftherock

Still_Dave wrote: »

Yes, as above there are still a fair few ways that they can get it back.

If you’ve been paid in error would the decent thing not be to return it?

To the banks?! After all the mis-selling they have done!

topoftherock

mjm3346 wrote: »

If the mistake is discovered and you fail to return the cash or offer an acceptable explanation for not doing so then it is a possible "Theft" offence and could be pursued as such (it is not a debt in terms of borrowed money and failing to repay it which is where 6 years can come into play.)

Well, I would put the money in premium bonds and not touch it for 6 years anyway. Can you elaborate on what you mean by the above? I.e “where 6 years come into play”? Here is an example for you: Let’s say it has been 7 years since the payout , and the bank contact me and ask for all/some of it back because they made a mistake. Could they still get it back?

mjm3346

topoftherock wrote: »

Well, I would put the money in premium bonds and not touch it for 6 years anyway. Can you elaborate on what you mean by the above? I.e “where 6 years come into play”? Here is an example for you: Let’s say it has been 7 years since the payout , and the bank contact me and ask for all/some of it back because they made a mistake. Could they still get it back?

If you failed to repay or make acceptable explanation* it is potentially "Theft" however many years it takes for them to discover it - the 6 years generally relates to failing to acknowledge/make payments to an arranged debt which this is not.

(*If you acted in reasonable "good faith", spent the money/couldn't repay etc that would generally be that - if however it was clearly an obvious mistake/very large sum that should have been noticed, like £100,000 instead of £10,000 then they might want to pursue it, on the other hand they might just want to ignore it anyway)

foxtrotoscar_2

topoftherock wrote: »

Hi guys, I’m not sure if this is correct but I’ve read somewhere that if a bank pays you twice in error (e.g double PPI payout ) or makes an incorrect payment (e.g an overpayment of PPI In error ), the bank has up to 6 years to get the money back. If it’s more than 6 years, then the bank can not get their money back. Is this correct? Kind regards

Where did you read it?

topoftherock

foxtrotoscar wrote: »

Where did you read it?

I’m pretty sure on here. Some thread to do with duplicate PPI payout or something.

topoftherock

https://www.thisismoney.co.uk/money/news/article-3833245/Banks-snatching-PPI-payouts-ve-paid-25bn-years-mis-selling-say-mistakes.html This was why I asked the question. Did this actually happen? I.e banks clawing back money?

topoftherock

Moneyineptitude wrote: »

Tabloid newspaper sensationalism.

So this is actually false then?

topoftherock

https://forums.moneysavingexpert.com/discussion/4087915/ive-been-paid-ppi-twice This was where I read about 6 years.