📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

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

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
«1

Comments

  • 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
    mjm3346 Posts: 47,300 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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.)
  • 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!
  • 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
    mjm3346 Posts: 47,300 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 26 September 2019 at 9:11PM
    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)
  • 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?
  • Where did you read it?

    I’m pretty sure on here. Some thread to do with duplicate PPI payout or something.
  • 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?
  • Tabloid newspaper sensationalism.

    So this is actually false then?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.5K Banking & Borrowing
  • 253.3K Reduce Debt & Boost Income
  • 453.8K Spending & Discounts
  • 244.5K Work, Benefits & Business
  • 599.7K Mortgages, Homes & Bills
  • 177.2K Life & Family
  • 258K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.