Monthly repayment from wrong account (similar named account)

Hi There,

I recently took out a top up loan with a banking institution and found out that the monthly payment was not been withdrawn from my current account but from another person witha similar name.

I notified my bank who were surprised but they will correct it. Now, the question is will I have to pay the six months which I theoretically owe or will the bank have to foot the bill ?

I expect to pay it but I have read recently where the BOI gave out 20 euro notes instead of 10 euro notes from an ATM with a loss of 15K which they footed as it would have been otherwise been illegal to expect the customers to foot the bill.

Thanks for your help, Schillachie

I'm very surprised that the bank footed the bill for the ATM mistake. The people who got twenty instead of ten Euro should surely have to return ten?
The same will apply in your case as you had the money and it was a genuine mistake. I know its Xmas but you are expecting too much!

In this case the debit from the wrong account went to the credit of your mortgage. Would have thought they would reverse that. The only defence you could offer is where you believd that had been taking the money and adjusted your circumstances accordingly.

Hi Folks,

Thanks for the replies. I filled out the direct debit but somehow a mistake was made on their part.

I do expect to pay it back (after Christmas) but the interest issue is worth checking out.

Happy Christmas to all,

Schillachie

You might be able to make an arguement that you are unable to repay a lump sum at once, but you would repay over a longer period of time (e.g. 6 months) without getting hit for any additional interest.