Lloyds demanding money back after unauthorised "mistake" payment.

[Rupert Rigsby]

I have received a letter, out of the blue, from Lloyds, demanding money back from a payment made in March 2013, which was due to a mistake between them and the account holder. I dispute their demand.

 

For my sins, I am a student landlord. I rent rooms to students for a set period. The students pay me, either via Standing Order, cheque, direct bank transfer, etc., whatever is easiest for them.

 

In March 2013, a monthly payment came through from a student, £303.00, as expected and as due. Around the same time, that same student asked me how much rent was left to pay off the rest of the tenancy. I gave him the figure, which was based on the fact he had just paid the March payment, and he stated he would pay off the full amount in April, which he duly did. (the tenancy ran until June).

 

As far as I am concerned, he had paid me in full, the correct amount for the year. He owed me no more, everyone was happy.... or so I thought.

 

Today, whilst in another student house, a letter came through the door addressed to me. It was from Lloyds Bank (I do not have an account with them). It is stating that a payment made to me in March 2013 which "credited your account" was made "in error". The reference was for a student staying at a different address at the time. It is stating that I have not "re-imbursed" them and that I am not "legally entitled to retain this money and have not offered any explanation as to why you have not returned the money..."

 

If I don't send them a cheque they are refering the case to their "legal department", according to this.

 

I am bl**dy furious!!

 

Why?.. Because:

 

1. This is the first I have heard about this.

 

2. Their letter is sent to an address that, although I "own" (mortgaged to the hilt, mind!), I do not live at. It's not my home address. It's only luck I was here dealing with a roof problem when it arrived!

So I phoned them up to find out what was going on.

 

They claim they have sent numerous letters - well, none are currently at this house, the students that were here have all left months ago, and none have ever been recieved at my home address, so I am mystified by this claim, but anyway....

 

They also claimed they had contacted my Bank (Barclays) and that they had been told my "Relationship Manager" had been in contact with me to talk about this - well, actually, no he hasn't. I don't even know who my "Relationship Manager" is, let alone had any sort of conversation with him. When I asked for dates/times, they said they were only repeating what Barclays had told them!! Well, I repeat - I have not been contacted by Barclay's in any way shape or form about ANYTHING for about 5 years!!! - Lloyds and/or Barclays are just making this up!!

 

 

Lloyds told me I have to pay the money back because it should not have been paid. I stated that the money was due, I have a Tenancy Agreement showing it was due, and when it arrived it was checked off on my spreadsheet. Why would I think anything was wrong? If there had been some sort of cock-up beween them and their client (my tenant) then as far as I am concerned that is for them to sort out. I did not recieve any money that was not due to me, I have not been paid more than I should have been paid - the amount on the Tenancy Agreement is the exact amount I have recieved - no more, no less.

 

From what I can gleam (or guess) - I think what happened is that my tenant wanted to cancel the sheduled payment due in March, told his bank, they messed it up by paying me - so they refunded him and are now demanding the money back from me.

 

The problem is - I have done nothing wrong. It was not my instruction. It was not my mistake. I was entitled to that money at that time.

 

The bank seem to think that because I had money they don't think I should have had due to their cock-up (even though it was due to me), that I should pay them back the £303 and then try to locate this "ex-tenant" - wherever in the world he might be now - and then try to pursuade him to give me a extra months rent!!! What planet do these people live on???

 

Why should I lose out and be threatened with legal action for having a payment made which was due anyway and that I am perfectly and legally entitled to? I am a single person business, struggling to survive actually, and it is hard enough getting students to pay up sometimes, but why does a bank think it can, out of the blue, demand back a rent payment from 6 months ago!!

 

As it happened, they did not have my name (umtil I told them) only my "trading as" name - and they certainly didn't have my home address(even though using my trading name on Google shows it on the 1st page - I don't hide!!) - as no letters or phone calls have been recieved at my home address.

 

Basically, I told them on the phone to "sling their hooks" - it's between them and their customer/client if they have lost money through their own mistakes and stupidity - nothing to do with me - I have only got what I was fully entitled to.

 

But, can anyone tell me where I stand with all this? Thanks.