money paid into an account in error

[clarcam]

is the recipient legally obliged to pay it back or can they say ‘finder’s keepers’

i can understand if a bank paid a million into your account , but say £100?

i made a mistake for £200 paid into wrong business account i do use. i have statements it was paid there but they just keep giving me a run around if they reply to my emails and texts , saying things like they have hundred of transaction weekly or daily and can’t check it to confirm etc

i was told if they had spent it i will have to accept their repayment terms and can’t charge interest .

where does the law stands in this situation i find myself ?

So you’ve sent £200 to the wrong business?
What is the business is it something you’d usually be able to get a refund for? I would expect them to have to give you the money of but perhaps not at any great speed. And I’d be very surprised if you can claim interest on something that you did in error. The interest on £200 would be pretty minimal anyway wouldn’t it?

From what I remember, the receiver does not have to give the money back.

This is wrong. If the receiver keeps and spends the money, they are guilty of a criminal offence punishable by up to 10 years in jail.

@clarcam You should contact your bank about this mistake. Under the misdirected payments code of practice, they should take action to recover the money for you within 2 working days. If your bank is unable to recover the money, point out to the business that, if they have kept and spent your money, they may have committed a criminal offence under the Theft Act 1968 section 24A. Be clear that you do not accept their terms. You expect immediate repayment of the full amount.

thanks i will send them what you wrote.

i thought the bank would not be able to help if i made the mistake paying into the wrong account isn’t that i have used before. i thought they can only help if i was a victim of a scam

The misdirected payments code of practice applies when you make a mistake and send money to the wrong account. Your bank should help even though this is your mistake.