Question:

Appeal to law students, lawyers, or anyone who knows the law. A legal/bank account question!?

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If you are overpaid into your bank account, and you spend the money, do you have to pay it back to the fool who overpaid you and tempted you in the first place, or can you claim: my bank account, my business?

I'm a student, and when I see unexpected funds in my account, logic switches off, and my mind just releases so many endorphins and so don't question it.

As Oscar Wilde said:

'I can resist everything except temptation'

And now I'm told that this extra magic money wasn't, after all, some present from the good fairy godmother, but an error. We're not talking much, just a couple of grand. But enough to not want to pay it back if I don't have to.

So, who knows what my position is? Am I obliged to pay it back?

And serious answers only, please.

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7 ANSWERS


  1. you have to return the money but do it at a rate that suits you. Although the bank was negligent in leaving the money in the wrong account, you are responsible for your own money and would have known that it wasn't yours. Yet you spent it. Pay back as little a month and say you cannot afford anymor than that, if you really don't want to lose out.


  2. Offer to pay them back a minimum amount per month. (£5)

  3. Of course you have to pay it back.  It was an error.  The same way you would report an extra debit to your account, you are also supposed to report a CREDIT error to your account.  You took money that wasn't yours.  Pay it back.

  4. There was a recent case in England last year, a Lancashire woman found her bank had mistakenly credited her account with thousands of pounds. She thought it was a gift and spent it. She went to jail for theft.

    A banking mistake is seen in law as an honest mistake and you must return money deposited in your account in error.

    However, any interest accrued by the mistaken deposit is yours to keep.

  5. The money never legally belonged to you and once you become aware of the mistake you should have returned it. If you do not then you commit theft by unlawfully assuming the rights of the owner.

    That said someone has made a mistake so I would suggest that it would be reasonable if you explain that you have limited funds to pay the amount back and agree a weekly payment. That way everyone comes out as happy as they can.

  6. the money was not yours

    you had no expectation that it was yours to spend and can not now claim that you can not afford to pay it back. you can not claim the need to make payments for funds that you never expected to have access to.

    the bank can draft the funds out of your account without your consent so address this now.

  7. I think its like A and B has a contract to perform a banking transaction. If B commmits an error by wrongfully credits A's money into your account. You must pay back the money because you are a third party and not a party to that contract and must legally do so.  

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