Bank problem, not related to charges, need advice

[dfillmore]

In the past, one of my friends tried to transfer some money to my account but he had the wrong account number. We managed to speak to the bank and get the money transferred to the right account.

 

Recently someone else needed to transfer some money to my account, but I gave him the Natwest sort code and Smile account number :-|

 

Anyway, Barclays have told him that they cannot recover the money, as it would involve illegally accessing a third party account.

That would be fair enough, but I doubt that the sort code and acct number combination is even for a valid Smile account.

 

Has anyone else ever had problems like this? any advice?

 

Many Thanks

[hagenuk]

Sort codes are unique to bank branches and each bank has a range of codes that they employ. For example, Nat West use 01, 50 - 59 and 60 - 66 whereas Smile (Co-Operative Bank plc) sort codes begin with 08.

 

Barclays are lying to your friend and he should recover this money without delay - clearly it did not get paid anywhere as any attempt to use an incorrect sort code would result in the payment being refused.

 

The money will be sitting somewhere in a suspense account pending allocation - it will be no problem for Barclays to return it.

 

Send Barclays an LBA, 14 days should be more than sufficient for them to trace and return the money.

[Goldlady]

If the money can't be allocated it should be returned automatically - I know this from the occasional (!) booboo when doing bacs wages payments which I do lots of every week.

[dfillmore]

Many Thanks for your help =)

[mollington]

The only trouble is that if the sort code and account number were infact valid for a Natwest account, if thats the case the money would of been paid in there, If this happend there are 2 options either Barclays can do a recall of funds if this isent possible then thy need to get natwest to write to the 3rd party explaining the mistake and then ask for there permission to remove the funds ,

 

Remember this was not Barclays error so i cant see a LBA being much use ,

[hello1000]

At work when we transfered funds to the wrong account (held with the bank i worked for!!!) we remove them as soon as we are aware and we don't need to ask for permission (as long as they haven't being spent all ready...and this happens lot's...).. with other banks we speak to the bank and request they return (allthough some banks are useless and don't seem barclay bothered) and should this occur we have to pay this from our own account and then try to reclaim from the wrong payee, we use court action if they don't agree:eek: .

ooop's did I name the worst offender!!!! oh not quite:D

[hagenuk]

There is no need to seek any permission. This is considered to be payment made under a mistake of fact and the bank are entitled to recover the sum in full.

 

There is caselaw going back over 160 years, one of the earliest is Kelly v. Solari (1841) 152 E.R. 24 at 26 where Baron Parke stated,

 

"I think that where money is paid to another under the influence of a mistake, that is, upon the supposition that a specific fact is true, which would entitle the other to the money, but which fact is untrue, and the money would not have been paid if it had been known to the payer that it was untrue, an action will lie to recover it back, and it is against conscience to retain it."

 

The law on the recovery of money paid by a banker under a mistake of fact was reviewed by Robert Goff J in the case of Barclays Bank Ltd v. WJ Simms & Cooke (Southern) Ltd & Anor [1980] 1 QB 677.

 

Goff J after a detailed analysis of the law deduced (among others) the following principle that:

 

(1) If a person pays money to another under a mistake of fact which causes him to make the payment, he is prima facie entitled to recover it as money paid under a mistake of fact.