Banks/Bookmakers debiting accounts in error

[papabravo]

I'm wondering if anyone can tell me what the legal wranglings are if a bank or bookie debits your account in error; whether they have the right to take it back without your approval; whether they can extract it through legal means. I can vaguely recall one of the Irish bank debiting a huge sum into an account some years back and the chap absconding with it to Spain. Not sure what came of him, or whether he was forced to give it back. Any concrete advice out there?

 

[MsGinger]

I can vaguely recall one of the Irish bank debiting a huge sum into an account some years back and the chap absconding with it to Spain. Not sure what came of him, or whether he was forced to give it back. Any concrete advice out there?

I think you mean they credited his account?

AFAIK he got away with it.

The banks have told me that if they credit an account in error, they have 24hrs from when the funds hit the account to take it back.

If it's not taken back within this time, they have to contact the owner of the account and ask for it back. If the owner of the account does not agree to giving it back it's tough luck to whomever made the mistake.

 

[ClubMan]

If the owner of the account does not agree to giving it back it's tough luck to whomever made the mistake.

I suspect that this is not actually true and that incorrectly debited funds can be reclaimed through other means in most or all cases.

 

[ubiquitous]

I would also share this suspicion. Whatever you want to say about banks, they are rarely either stupid or shy when it comes to protecting their own interests and it is inconceivable that their standard terms and conditions do not cover this sort of eventuality.

 

[huskerdu]

Not true MsGinger. In the case of an incorrect debit, the bank have a right to get the money back.
It is not true that it is yours to keep. The law states that if you keep money which you know not to be yours, it is a form of theft, even if you did not take it.
The guy who absconed to Spain, did exactly that - he absconded to Spain, and if he comes back, they will go after him for the money.

 

[dontaskme]

Not true MsGinger. In the case of an incorrect debit, the bank have a right to get the money back.
It is not true that it is yours to keep. The law states that if you keep money which you know not to be yours, it is a form of theft, even if you did not take it.
The guy who absconed to Spain, did exactly that - he absconded to Spain, and if he comes back, they will go after him for the money.

I thought he agreed to give back what he had not spent of it i.e. most of it.