- Santander is still recovering money it mistakenly sent to customers in 2021
Santander is still in the process of recovering £130million it accidentally paid to customers over three years ago.
A payment error on Christmas Day 2021 meant that some 75,000 payment transactions, at an average of £1,733 each, were wrongly put through twice.
The money had been sent by around from 2,000 people and businesses.
It meant some customers got paid their salary for that month twice, with some of the money coming directly from Santander’s own reserves.
The bank struggled to get its money back because much of it was sent to customers of other banks.
And Santander’s efforts to recover the money it wrongly sent to customers are still ongoing more than three years on, The Sun has reported.
It means some customers still need to pay back the funds they received in error.
Blunder: Santander accidentally paid around 75,000 customers twice by mistake. While they may have been delighted, can they keep the cash?
A spokesman from Santander said: ‘We worked collaboratively with recipient banks immediately after the issue occurred in order to recover a majority of the funds, but some recovery activities remain in progress.’
This is Money spoke to two consumer champions to find out whether you’ll have to pay money back if you receive money you aren’t owed from a bank, or if your job overpays you, and what your rights are.
Do you have to return overpaid wages?
Martyn James, a consumer champion, says: ‘Sorry to disappoint you all, but there really is no thing as free money. In fact, legally, you’re obliged to pay it back.
‘Of all the finance urban myths, this is the one people cling on to the hardest. If the bank or a business overpays in to your account you have to return the cash – even if months have passed since the error.
‘It is illegal for customers to keep the wrongly accredited money and if they spend it they face being charged with retaining wrongful credit under the Theft Act 1968.’
Scott Dixon, who runs The Complaints Resolver website, added: ‘Employers are entitled to recover overpaid earnings as you legally have no right to keep money paid to you in error, although they should assist with a monthly repayment plan if necessary.
Martyn James added: ‘If you have spent some or all of the cash ‘accidentally’ then you can expect your bank or card provider to come up with an affordable repayment plan, ideally without interest.
‘This shouldn’t damage your credit file either. On occasion, you might be able to demonstrate that you were expecting a lump sum payment like an inheritance and assumed the deposit made in error was that sum.
‘This might – might – result in some of the cash you’ve spent being waived, but this is very, very rare.
‘In cases where a long time has elapsed, the bank will have to justify why it’s taken so long. In these cases, complain to the Financial Ombudsman.
‘The bank may be forced to accept a smaller payment, or in rare cases told they’ve waited too long.’
Were you overpaid by Santander? Get in touch: [email protected]
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