What should I do if I receive a money transfer in error?

What should I do if I receive a money transfer in error?

Anyone who receives money and can’t account for its provenance should inform their bank; if there’s the suspicion that it’s been sent in error, set the money aside until any doubt has been cleared up.

What happens if you send money to the wrong bank?

A code of best practice on ‘misdirected payments’ has been introduced, and it outlines how your bank should act in the unfortunate event that you send money to the wrong account. It’s the first time banks have agreed a common process to recover money transferred to the wrong account.

What happens if you make a mistake in a bank account?

Contact your bank as soon as possible after realising your mistake. The sooner you do this, the better your chance of recovering your money. If your money went to an invalid account, it will usually bounce back into your account. Retrieving a mistaken payment to a valid account can be more difficult.

Can a bank reverse a payment made in error?

As a general rule, banks can reverse a payment made in error only with the consent of the person who received it. Your bank and the recipient’s bank will need to co-operate to try to recover the payment.

Can a bank ask you to transfer money into a safe account?

First, banks will never ask you to transfer money into a ‘safe account’. It just doesn’t happen. Second, banks will never ask you to reveal personal information including your PIN, or passwords for online accounts. If in doubt, hang up the phone and call your bank directly using the number on your credit or debit card.

What to do when money transfer goes into overdraft?

Unfortunately, that remains the case if the reason the recipient would go into overdraft is because they knew the money wasn’t theirs but spent it anyway. In cases such as these, one of the options available to us is taking the recipient to court. As so often in life, prevention is better than cure.

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