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Question

Supposing someone closes a bank account and the bank promised to pay a cheque in respect of the closing balance and the customer phones and asks them to settle with BACS and it is all set up;then a few days later a cheque for the balance arrives in the post, the customer assumes the BACS did not work and pays the cheque in. Some time later the customer checks and finds the BACS did work and the cheque cleared thus the bank have paid her twice! What are the chances of it being noticed by the bank that they paid her twice and would the onus be on the customer to inform the bank and pay it back or can the customer wait for the bank to contact her (if at all?)

Submitted: 298 days and 2 hours ago.
Category: Finance
Value: $12
Status: AWAITING CUSTOMER ACTION
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Accepted Answer

Excellent question.

 

There are two schools of thought here on how best to handle this situation - and it's an age old dilema.

 

First, the bank account is closed, so the bank really has no way to get the money back from the customer. Is the onus on the customer to return the check ? I don't know. Would the same bank cut someone a break, out of the goodness of their heart, to help a customer two months behind on their mortgage - or would they demand payment. Well, we know the answer to that - they would demand payment ASAP or they would bring legal action.

 

To keep the check is really up to the customer and it's neither right or wrong to keep the check or send it back.

 

The bank will probably notice & probably will send a letter asking for repayment. The accounting systems banks utilize are so presice that I would be surprised if it goes unnoticed.

 

But there again, they can ask, but the customer doesn't have to respond.

 

I hope this helps - Good Luck !

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Expert: James Heal
Pos. Feedback: 100.0 %
Accepts: 
Answered: 1/29/2009

Financial Advisor

15 years expertise in all ares of personal finance, including credit cards, mortgages, real estate.

298 days and 1 hours ago.

Reply

Hi, thank you - I see that you are in the USA and it may be different from here in the UK but I would have thought that as the bank made the mistake it was up to them to initiate contact to recover the balance and that there is no wrongdoing in her not taking any action

Posted by James Heal 298 days and 1 hours ago.

Answer

You're exactly right - there is no wrongdoing in her not taking action. I guess I was a little too long-winded in saying that.

 

Regards



Edited by James Heal on 1/29/2009 at 1:53 AM

298 days and 1 hours ago.

Reply

ok, and are you certain that also applies in the UK financial services law?

Posted by James Heal 298 days and 1 hours ago.

Answer

Yes - It's not her fault. But, like I stated earlier, this is not a legal issue - it's a moral issue. If your friend does not have an ethical problem with keeping the check then not to worry - but if her conscious is telling her to give the check back - then that's the right thing to do also.

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