'Bank can't reverse R63k I paid into wrong account after recipient refused to return the money'
Consumer ninja Wendy Knowler has the lowdown on avoiding costly 'finger trouble' when doing electronic fund transfers.
Angry young man shouting. Pixabay/Yogendra Singh
Having 'finger trouble' when you make an electronic fund transfer, can be a costly mistake.
You could pay the wrong beneficiary by clicking on the wrong name on your list, or gift a complete stranger by adding a new beneficiary's details incorrectly, for example.
Consumer ninja Wendy Knowler recently tried to help a consumer who did the latter, ending up R63 000 poorer.
A year ago, Aubrey mistakenly deposited this large amount into the wrong account when he neglected to input one of the numbers.
He was paying a Standard Bank client from his FNB account.
"I only learnt the following month that the money went to the wrong account when the supplier queried the non-payment.”
Aubrey
Aubrey filled out a Payment Reversal Request Form, but the bank was unsuccessful in getting his money back from the unintended recipient - i.e. this account holder, also a company, refused to return it.
Escalating the complaint to the then-banking ombud - now a division of the National Financial Ombud Scheme (NFOSA), didn't help either - they sided with the bank.
Knowler finds out why Aubrey was unsuccessful in his attempts to salvage his funds.
The consumer journo says she'd had some success with persuading companies to give back the money in the past, but all Aubrey had was a name.
"All attempts to trace it failed – the CIPC registration number belongs to someone who knows nothing about the company, and the given address in North West is unoccupied."
"So sadly, for Aubrey, a dead end. Although, clearly, the bank has the means to contact them."
Wendy Knowler, Consumer Journalist
The banking ombud explained to Aubrey that in terms of the rules governing a reversal request for payments made in error, if this can't be successfully processed, the bank cannot become involved in the dispute between the complainant and the account holder.
His only option now would be legal action – but of course that is both time consuming and expensive.
Knowler's advice is the age-old maxim 'prevention is better than cure'.
"Check the details before you confirm your payment… MANY TIMES."
"Some banks will do a verification that the account number you have entered online matches the name of your intended recipient for a small fee. To my mind that is money very well spent, especially if the transfer is a large sum."
Wendy Knowler, Consumer Journalist
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