Bank made error - now want money back.

[owainjones]

Over 6 months ago a bank made a mistake and paid �500 into my account with another bank.

Today I get a letter to say that they want that money back. I did not even notice the payment when it happened but looking on my statements I can see that it did occur.

My current bank can't take any money out of my account without my authorisation but said that if I refuse then the other bank may take it further and take me to court.

What is my legal position and do I have to pay the money back?

[dannydingbat]

I'm afraid you do - it's not yours. You are assumed to have checked all your statements and raised the problem knowing it wasn't yours.

[kazza12345]

i have no idea what the legal position is but i would say you have a moral duty to pay this money back surely? You have deprived someone else of money that is theirs. i would imagine that they would accept a plan, for example 50 pounds a month over 10 months if you cant afford to pay it back all at once

[WendyS]

Yes, I'm afraid the money isn't yours legally and will have to be paid back. But I'm really surprised that you haven't checked your bank statements for six months. How on earth would you feel if you had been a a victim of identify theft for six months without noticing? Suggest to the bank that you repay the money over several months on the basis of what you can afford. (And please do check your bank statements regularly in future for your own security).

[Loosehead]

You have to repay it, however as it was their error I imagine that they would be very receptive to any reasonable offer. So you could for example offer �50 per month.

[Gef]

How would you feel if they had taken �500 out of your account by mistake?

[Hgrove]

If you can convince the bank (or a judge) you innocently believed the money was yours and you subsequently altered your position to your detriment in reliance on that money, then you might get away with it. "Altered your position to your detriment" means you went to some expense you would not have gone to but for the money.

[VictrMeldrew]

I think Gef is being helpful, but as you did not notice that you had an extra �500. then I am sure that you would not notice that �500. had been taken out, would you!!!!!!!!!!

[WoWo]

""Altered your position to your detriment" means you went to some expense you would not have gone to but for the money."

I doubt that would wash with the court, that might work if you were expecting a payout and it was more than expected. But doing so in this position would actually be an addmition that you knew the money was there and spent it regardless.

[Miss Zippy]

The legal position is: the money is not yours and you are legally obliged to return it. Case law has determined that such erroneous credits to a person's aacount cannot be deemed to be a 'windfall'. In more serious cases, if you were to refuse to repay the money, you could be prosecuted for fraud. (There was a case last year where a couple spent �20,000 which was erroneously placed into their bank account. They were each jailed for 24 months and, of course, ordered to pay the money back.)

[oakleydoaky]

It isn't your money (and you know it) and it isn't your money if you pick it up off the street! (finders keepers)

look what the law says about that

http://www.kevinboone.com/findapenny.html