I have over €1000 of bank's money...

snatch

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In Oct05 I visited my local friendly bank and signed a form to stop a direct debit for over €1000 due to go to a life assurance company. I also cancelled the insurance with the company. Payment was still requested, and the bank paid it out of my account. I kicked up, and four days later, full refund appeared in my account. I thought that that was the end of that.

Another four days later, another credit appears in my account, for more than €1000, but €90 less than the last one. The reference indicated it was another refund from the insurance. Now I have been refunded twice (although 2nd time, it was €90 short).

Bank calls and I say, sure, take back the lesser amount. They say, no you owe us larger amount. I say no... They say we'll call you back. No calls for 2 months, until letter arrived in early Jan to say please call miss x at the bank to discuss this. I did, and surprise! she's looking for full amount back. I said no way, I signed form to say no money is to go to this company. She says that the insurance company took a months premium before they issued refund and that's my problem. No resolution and I still have the bank's money. My account has stayed in credit over the amount in question the whole time this has been going on.

Sorry for the length of this but what would you do next...
 
I would stick to your guns and hold firm. Are the bank/insurance company threatening legal/other action?

I would maybe send them a "without predjuice" letter offering them the lesser amount in "full and final settlement". See what happens next. They won't be able to use this letter against you.
 
I would tell them to get stuffed. But cover yourself and put it in writing that you have authorised them to take the lesser amount from your account.
 
What does the terms and conditions of your insurance policy state? It might mention
that you have to give written notice of X number of days to discontinue the policy. If it
does, it may mean that the insurance company have a legal right to the 1mth premium...
 
You could magnanimously offer to refund them the €0.23 interest* the money has earned while sitting in your a/c for the last three months...? :D

[* 1/4 x 0.01% of €910]
 
I'm particulary interested in the answer to this as in november I rang to cancel my credit card and was told there was €2,300 credit on it. Five calls later telling them it wasn't my money the credit was still there. In the meantime I got a call to say that my card had been skimmed somone was busy shopping in paris with it. Result was they cancelled my card for me and issued me with a new one....with €2,300 credit on it. I gave up making calls and used my card over Christmas, I got a letter last week asying they're going to debit my card for this error they made. I've since used up the credit and don't fancy having that big a debt on my card, any ideas?
 
Financehelp said:
a new one....with €2,300 credit on it.
[...]
I've since used up the credit and don't fancy having that big a debt on my card, any ideas?
You mean you spent the €2,300 credit you knew to be there only through an error? :confused:

The bank shouldn't charge you any interest on the sum involved — as long as you pay it back promptly, once they acknowledge the error and ask you for it. But if you thought 'woo-hoo, free money!' and went out and 'blew' it, then it would only seem fair that you take responsibility for the consequences of that...!
 
No I didn't blow it I just figured that I might aswell use it over christmas instead of clocking up debt on mt other credit card. I have the cash to pay it back it's just annoying when I asked them to take it away so many times and they didn't. Now just after christmas, worst time ever they decide they want it back!
 
I was talking with a solicitor friend about a similar occurence during the week. apparantly legally speaking (obviously you'd have to check this with a solicitor) if the bank accidently gives you money they have the right to take it back. However if they provide you with an assuarance that the money is yours - thereby leading you to spend it in the belief that it is yours than the fault is on their part and they don't have to pay it back.

Then again my solicitor friend is an aussie so I'm not sure what jurisdiction she was talking about!
 
Financehelp said:
Now just after christmas, worst time ever they decide they want it back!
That's a corollary of Murphy's Law...
Blow hot and cold with them and tell them that despite their 'extraordinary' error you'll be happy to refund them on receipt of written confirmation that this is the end of the story, that this will never negatively influence your credit rating, etc. Point out that you've been gravely inconvenienced and are effectively out of pocket for the cost of all these 'phone calls — not to mention the waste of your time, the trauma suffered, etc... ;)

It'll probably take them another month to get that together, and in the meantime you're earning 0.01% APR on the €2,300 — woo-hoo! — and using the Bank's money as a free 'bridging loan'...
 
Thanks for all the replies. I have drafted a letter as suggested by bond and was considering including a cheque 'in full and final settlement'. To be honest, I want rid of the money out of my account because I wouldn't spend it and everytime I look at my balance I think I'm rich...then I remember it's not mine!

No-one has mentioned legal action. All communications with the bank so far have been by phone or in person. Insurance company documents don't say anything about a notice period and I have no interest in getting into a row with them over €90 (essentially on the bank's behalf).
 
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