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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 71153
Experience:  Over 5 years in practice
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I have just discovered that my bank has been making errors

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I have just discovered that my bank has been making errors in my favour over several months. This has shown my credit account to have more money than reality. This has been shown on both paper statements and on cashpoint balance display.
I am happy to go to the bank to put the problem right. But I will lose money that in good faith I believed was mine.
What do you advise on my legal position?
Phil shelton
Thank you for your question. My name is ***** ***** I will try to help with this.
What is the overpayment please?
Customer: replied 3 years ago.

+ or - GBP 2000

The bank shows me 2000 credit. Reality might me 2000 overdrawn!

Yes, it is a difficult situation.
The starting point is that they are entitled to their money back. Come what may, this is money you should never have had. It is not your fault but it is the situation.
There is an outside chance that you could avoid having to repay if you can show that the overpayment was not your fault, that you had no way of knowing about it and that you have changed your position in reliance upon being entitled to this money.
The fact it wasn't your fault is clear. You didn't make them over pay. Similarly you have changed your position. The money is spent.
The difficulty will be that they will say that you must have known as you receive bank statements. I know that nobody goes through their bank statements with a fine tooth combe but there you have it.
Whether they will want to go to court over this is another matter. The trouble is that they will just deduct it from your account and then it will be for you to sue them. Often they do throw their hands in for lower sums as it cost effective for them to fight them.
You could also complain to the Ombudsman.
Put your hands up as soon as possible though. They will ultimately find this.
Sorry if that is bad news.
Can I clarify anything for you?
Customer: replied 3 years ago.

Thanks for the advice. I Will happily pay your fee. The crazy thing is that my account will show my payment as a CREDIT to my account! Bizarre!

Yes, it is obviously their mistake.
Bring it to their attention and see what happens.
The trouble with this situation is that it is going to lead to problems for you so it is difficult for you to raise but it will only get worse the longer it carries on and they will ultimately find it.
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