Funds paid in error

[RhiannonM]

I had some money incorrectly paid into my Smile savings account in April, and Smile are now demanding it back, stating that they will debit my (current) account in 5 days time (putting me overdrawn in the process).

 

Are they allowed to do this? I have written to them expressely forbidding it. They have also blocked my access to the online banking site.

 

Prior to them paying this money into my savings account, I started an account transfer process, due to their previous failings with my bank accounts, which has still not been completed; due, I believe, to them trying to get this money back first.

 

I have written to them stating that I want the account transfer process fully completed first, as it was requested over a week before they paid me this money.

 

Does anyone know what the legal position is?

[Movingon]

Well, first of all, while you prepare your arguments, you should place the "debt" in dispute. Then they cannot enforce it or otherwise do anything. While that's all going on, people here will be giving their views; although to be honest I think they might have a case for getting it back. How long was it between their error and them notifying you? When you saw the money going in, did you query it with them?

 

Don't forget that you can tranfer your account MANUALLY if you wish, leave the balance of the smile account at effective zero and set up new standing orders etc yourself on the new account. Tell all your creditors to immediately cease using SMILE as the billpaying account, and give them the new account details.