I have mistakenly transferred money via internet banking to bank acc. belonging to old owner of a supplier....

Question

He will not return funds to me even though he knows he received it in error as he is having a dispute with the new owner. Anyone know legal implications, or what I can do to get my money back?

Answer 1

Good luck.

Since it's just a Cash transfer, there is not alot you can do.  It's kinda like sending a chq.  Payable to somebodies name, once cleared hard to get back.

Call your bank and see if you are able to do a stop payment on this kind of transfer.

This is the reason, I do not reommend this type of transaction to my clients.  When paying for payables always better with a cheque.

Answer 2

If this supplier received funds from your company in error, they are required to refund you the funds paid.  I would suggest you begin to create a paper trail.  

1.  Find verifiable documentation that shows that you paid the supplier $xx

2.  Notify the supplier via registered letter that you have sent these funds in error and ask them to kindly refund your transfer - give them a time period to remedy the error (usually the same period of your payment terms) - provide the documentation of the payment you made - ask them to contact you with any questions

3.  Follow up with another registered letter if the funds are not received

If you still do not receive the funds - you may need to consulate an attorney.  You will need to weigh the legal fees against the payment error amount and decide if it makes sense to pay legal fees or wright the payment error off.