Paid money in to wrong account

[enaid]

Online banking customers who slip up and make wrong payments to get more help clawing their money back

Online banking customers who accidentally send money to the wrong account will get more help to reclaim it under new rules.

Major banks and building societies have signed up to the voluntary code, which will give customers greater protection if their money does go astray.

Wrong payments have become an increasing problem as more people move towards online banking and mobile payments.
All it takes is one incorrect digit when filling in an account number or a sort code, and funds can end up in the wrong bank account.
Some 19million electronic payments are made each day. If only a small proportion go wrong, that is tens of thousands a year. Until now, customers who transfer funds incorrectly have had little or no protection because the rules are so vague.

Read more: Thisismoney Bank Slip Ups

More info here

Payments Council



Ever been left frustrated when an online banking transfer goes wrong? Now banks can raid accounts to get back cash you sent by accident

• HSBC, First Direct and Nationwide can now haul back money that has allegedly been paid into an account by mistake
• Other banks expected to follow
• Tens of millions of pounds accidentally vanish into strangers’ bank accounts during attempts to transfer money electronically every year

Banks will be able to raid a customer’s account to claw back cash paid in by accident in a groundbreaking move that is set to end the misery of missing payments.
HSBC, sister bank First Direct and Nationwide have become the first big names to rewrite their terms and conditions so they can haul back money that allegedly has been paid into an account by mistake.
This happens when someone using online banking either mistyped or is given the wrong account number into which to pay funds. As a result, the money ends up in the account of another customer.Up until now there was little anyone could do if the beneficiary refused to speak to their bank or answer correspondence.
But the new rules from HSBC, First Direct and Nationwide - which are expected to be followed by other banks - will mean that no longer will people be able to benefit from so-called fat-fingered transfers just by keeping silent.Customers who have received a payment that someone else says was sent in error will be sent a letter, texts and receive phone calls. If they fail to respond within a set period of time - in some cases up to ten working days - the disputed funds will be hauled straight back out of their account or ring-fenced so it can’t be spent while the case can be investigated.
The changes by HSBC and First Direct, which take effect from November, mark the latest attempt by the banks to end the mess of missing payments.


Read more: This is money accidental payments




If funds cannot be recovered, the customer will be told about other options available to them, such as court action, and they can also take their case to the Financial Ombudsman Service (FOS) if they are not happy with their bank's actions.

Financial Ombudsman Wrong Payments

[leclerc]

Re: Paid money in to wrong account

There has been a change today from the payments council:

New Help For Customers To Recover Payments Sent In Error

• New industry procedures mean funds can be protected to help rightful owner

Customers who make a mistake when sending a mobile, online or phone banking payment are set to benefit from improved help to recover the funds, thanks to changes to industry procedures announced today (Tuesday 26 January 2016).
The new procedures strengthen measures introduced in May 2014 which standardised the timescales customers can expect for a bank or building society to investigate a report that a payment has been sent in error. The latest enhancements mean that where there is clear evidence of a genuine mistake, the receiving bank will prevent the money being mistakenly spent by the recipient of the payment.
Although the improvements cannot guarantee a customer will get their money back, they mean that, for the first time, in straightforward cases where the recipient does not dispute the return of the funds, the money will be returned within 20 working days.
To balance the rights of all customers, whether they have sent or received a payment, the receiving customer will be contacted by their bank and given the opportunity to dispute the return of the funds in all cases. Additional safeguards are also in place to ensure that where the circumstances of the claim are less clear cut, no funds are removed without the consent of the recipient.
What customers that have made an error can expect

• When you notify your bank or building society that you have made an electronic payment to the wrong account, your bank will commence action on your behalf within a maximum of two working days.
• Where your bank finds clear evidence of a genuine mistake, they will contact the receiving bank on your behalf with a request to prevent the money being mistakenly spent. As long as the recipient does not dispute your claim, you will subsequently receive a refund of the protected funds within 20 working days from when you notified your bank.
• In cases where the circumstances of the claim are not clear cut, your bank will still contact the receiving bank on your behalf. The recipient will be contacted by their bank to ask for consent to debit their account. No funds would be removed without the consent of the receiving customer.
• If it is not possible to reclaim a payment you have sent in error – for instance if the recipient disputes its return – you will be notified of the outcome within 20 working days from the point of your enquiry and in many cases much sooner.
• If funds cannot be recovered through the standard central process your bank will give you clear and accurate information on the options you have available – such as court action against the recipient.
• The industry procedures do not change the legal rights and responsibilities of you, your bank or the recipient of the funds. Anyone that intentionally spends money that does not belong to them is committing a crime, which can be reported to the police.
• If you do not get the service you should expect under the new procedures you can firstly follow your provider’s formal complaints procedure. If you are not happy with the outcome, your bank will provide you with information on how you can take your complaint to the independent Financial Ombudsman Service.

The procedures apply to payments sent using Faster Payments (which processes virtually every mobile, online and telephone banking payment between banks or building societies) or Bacs Direct Credit (used to pay nearly 90% of the UK workforce, and a billion benefit payments, as well as pension payments, employee expenses, insurance settlements, dividends, refunds and supplier payments).
The changes apply to all banks and building societies that connect directly to Faster Payments or Bacs Payment Schemes Limited from today, covering more than 95% of electronic payments made in the UK. Implementation is being rolled out across other indirectly connected banks and building societies during early 2016.

http://www.fasterpayments.org.uk/pre...form=hootsuite

I skipped over the quotes by various people cos it was boring and did not state what you need to know above