Money paid into wrong bank account

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SMP | 15:37 Sat 09th Jul 2011 | Law
32 Answers
When my daughter and her friend moved into their flat they set up a Standing Order from the friends account to the landlords Santander account for the rent. Unfortunately they got one of the digits in the landlords account number wrong and 3 months rent went into someone elses account.
The landlord didn't tell them he hadn't received the rent until the 3rd payment had gone out. They contacted both the friends bank and Santander. Santander said they would sort it out but are now saying the person whose account it went into hasn't got the money to give it back and as it was their mistake giving the wrong account number they don't qualify for an "unauthorised transaction" refund. Does this sound right? We talking £1800, which is a lot of money.
My daughter did ask do they not check the name against the account number but it's all computerised, using just the account number.
My daughter is also not sure if her flatmate is telling the truth about not having got the money back.



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All does not stack up here! As has been pointed out in a few responses ...

First off, as twix123 said, a one digit error in the account number should result in an invalid account number. It seems implausible that the money has ended up in some unknown person's account, who has now spent it.

It also seems implausible, as PurplePolkadot said, that the landlord would wait so long before pointing out that payment had not been received.

That, combined with the flatmate's extreme reticence to show any evidence of correspondence or loss, indicates that the flatmate is trying to pull a fast one.

And, if so, evil_sheep is correct. Your daughter has paid her share. If the flatmate has "lost" it, that's their problem - not your daughter's. And if they're prepared to pay for it, I'd accept that ...
My concern would be though, if things were not all as they seemed, what problems from events that have already happened and future events (if any such behaviour continues) could come from it.

If rent and bills are unpaid and your daughter's name is on the tenancy and bills and therefore has some liability for them then I'd have thought creditors (Landlord, bill companies) could still come after your daughter, potentially taking legal action if not paid and possibly affecting her credit rating.

Dangerous if post is being hidden and your daughter would not be aware of any potential problem to the extent of getting evicted (if a scrupulous Landlord who does things properly) or having CCJs entered against her name.

If she has liability for bills, I would imagine that the fact she gave money to the flatmate would be of little concern to them, they would want their money (including potential charges stemming from non or late payment) and I would have thought it would then be up to the daughter to try and reclaim money from the flatmate through her own channels (and at her own expense).

She needs to know the full position and her liability as soon as possible to avoid a potential (expensive) mess.

One potential get out is if the landlord would release her early from the tenancy if she found a replacement tenant - some will consider this if they do not lose out on money.

Does she have any kind of written agreement in place with the flatmate as regards her payment and does she have proof of the payments being made?
Be very careful before setting up a joint account with someone you don't completely trust. If the other party defaults and you have a banking relationship with them if affects your credit score. I have seen mortgages declined because of associated adverse, even after several years. I am not suggesting your daughters flat mate will make defaults but i thought i'd mention it.
I'd be careful about the type of account as well, make sure there are no possible credit related facilities such as an overdraft or ability to apply for credit.
It still doesn't make sense to me. If your daughter's flatmate has offered to pay the £1800 to the landlord, provided she does so I don't see what the problem is as far as your daughter is concerned.
But going forward your daughter should pay her share directly to the landlord so she knows she has proof of payment
i hate it when you dont get to find out what the outcome was.....
I hope you can come back and clarify things for us, SMP, because I still can't see what the issue is here. Maybe I've misunderstood but some of the points seem to me to be red herrings
You are clearly a caring mum- most of your posts seem to be about your daughter's problems. Have you considered inviting her to join AnswerBank?
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Sorry not got back sooner, husband disabled and not been well last couple of days, so not been on laptop.
Daughter insisted that her and flatmate sat down and talked and have sorted things re bills etc. Flatmate also spoke to own bank and manager is dealing with getting the money back.
Factor 30 it was the way the flatmate has acted over this money, that made everybody suspicious, not letting my daugher know what was happening. Anyway hopefully it will be sorted soon. By the way I have 3 daughters so my posts have been about all of them lol.
Thanks everyone for their help.
Thanks, I'm glad it's all sorted, but it does seem to me that this has all been rather muddled and a small mountain has been made out of a molehill.
I paid in to my Santander account two cheques, they have been cashed but to someone elses account. Santander keep saying they will investigate and come back to me , but so far nothing, this was 6 months ago. Any advice??
Start your own thread perhaps...
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Seems I misjudged the flatmate. Money back in her account today from Santander after she contacted her own bank Nat West and they got on the case, took a week once Nat West got involved. Thanks to all who gave advice.

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