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Too much money off the bank

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  • 03-10-2011 10:41pm
    #1
    daddymcdee
    Closed Accounts Posts: 10 ✭


    Hi
    Anyone know your rights on a bank putting too much money in your account and you spending it,then facing up to it and telling the bank only for them to turn around and tell you they are going to put it into a personal loan as a "favour".I agreed because I thought I was totally wrong.Now I have paid €1700 0ff the amount only to realise €700 hundred has come off the loan in 8 months . Help please!!


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    #2
    sarahlulu
    Registered Users Posts: 295 ✭✭sarahlulu


    If the bank put too much money into your account you have to pay it back, but surely they arranged an interest free loan for you, as it was not your error.
    Seems crazy that you have paid E1700 but E1000 is interest?


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    #3
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    daddymcdee wrote: »
    Hi
    Anyone know your rights on a bank putting too much money in your account and you spending it,then facing up to it and telling the bank only for them to turn around and tell you they are going to put it into a personal loan as a "favour".I agreed because I thought I was totally wrong.Now I have paid €1700 0ff the amount only to realise €700 hundred has come off the loan in 8 months . Help please!!

    By my rough calculations you spent c€10k???? (I'm making the assumption that the loan is over 5 years and at a rate of 13%). It would help if your figures were accurate.

    Anyhow, you've already admitted it wasn't your money and have agreed to put same into a loan. The fact you knew it wasn't your money in the first place says all I need to know. It's time you took some responcibility about the suitation and stop looking for a way out.


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    #4
    tenchi-fan
    Closed Accounts Posts: 3,339 ✭✭✭tenchi-fan


    Not much you can do other than pay the loan under the T&Cs that you accepted when the bank offered you the personal loan facility.


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    #5
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    sarahlulu wrote: »
    If the bank put too much money into your account you have to pay it back, but surely they arranged an interest free loan for you, as it was not your error.
    Seems crazy that you have paid E1700 but E1000 is interest?

    But he took advantage of the error knowing the money was not his. I don't see why they should arrange an interest free loan for him.


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    #6
    FISMA
    Closed Accounts Posts: 2,616 ✭✭✭FISMA


    In the States, if a bank makes an error, say puts $10K into your account and you run down, withdraw, and spend, they are still entitled to take the money out.

    This could mean putting your account into the negative.

    You may still have the cash and they cannot collect. However, don't try and get a loan, mortgage, or anything from a bank for 7 years.

    I am not sure if the bank did you a "favor," or you did one for them. However, if you signed on the bottom line, the terms and conditions rule.

    Also, I am not clear on the problem and/or its scope. We need more info.


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    #7
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,052 Mod ✭✭✭✭Jim2007


    FISMA wrote: »
    In the States, if a bank makes an error, say puts $10K into your account and you run down, withdraw, and spend, they are still entitled to take the money out.

    Well this is not the States and E&OE works wonders!

    Jim.


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    #8
    daddymcdee
    Closed Accounts Posts: 10 ✭daddymcdee


    Yeah I know i was wrong to spend it but I was out of work with 2 small kids and asked for extra in my overdraft to bring it to €1,300 and they put in €13,000.I do know i shouldn't have spent it but it snow balled until it was gone.I have no problem paying the money back which i am but don't believe it is fair to be paying so much interest on it .Being told this was a favour in the local bank and would not have to go to dublin for approval and that the bank could prosecute if they pushed it made me sign the agreement.Just looking for some advice have a meeting with the bank on monday.


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    #9
    Cynortas
    Registered Users Posts: 282 ✭✭Cynortas


    ah come on now u knew full well what you were doing if you took 500 euro fair enough but over 10 k cop on what do u expect the bank to do you deserve to pay interest back


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    #10
    JDxtra
    Registered Users Posts: 5,873 ✭✭✭JDxtra


    You may not have gotten a personal loan from the bank, so maybe it was a favour - afterall you spent it. I imagine the interest on a 13k overdraft would be much higher than a 13k personal loan.


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    #11
    Arciphel
    Registered Users Posts: 2,839 ✭✭✭Arciphel


    And here in a microcosm we have a perfect example of the current worldwide debt crisis, thanks OP!


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    #12
    tenchi-fan
    Closed Accounts Posts: 3,339 ✭✭✭tenchi-fan


    daddymcdee wrote: »
    Yeah I know i was wrong to spend it but I was out of work with 2 small kids and asked for extra in my overdraft to bring it to €1,300 and they put in €13,000.

    The bank did not "put too much money in your account" as you implied in your first post. They simply authorised an overdraft for an amount higher than you requested (clearly an admin error) and you withdrew more than you agreed.

    This leaves you liable to a higher interest rate due to it being an unauthorised overdraft (your fault for intentionally withdrawing too much cash).

    Furthermore, overdrafts can be called in immediately (unlike a loan, which has payment terms). So it's good that you had the option of taking out a loan instead of paying interest on an unauthorised overdraft.

    I don't think you can wriggle out of this one.


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    #13
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    tenchi-fan wrote: »
    The bank did not "put too much money in your account" as you implied in your first post. They simply authorised an overdraft for an amount higher than you requested (clearly an admin error) and you withdrew more than you agreed.

    This leaves you liable to a higher interest rate due to it being an unauthorised overdraft (your fault for intentionally withdrawing too much cash).

    Furthermore, overdrafts can be called in immediately (unlike a loan, which has payment terms). So it's good that you had the option of taking out a loan instead of paying interest on an unauthorised overdraft.

    I don't think you can wriggle out of this one.

    +1

    OP overdrafts need to be cleared for at least at 30 day period every year in most cases so you need to have the account up to date for one month every year.

    You knew full well what you done and consequences are you know hav to pay it back with interest.

    Clearly an admin error but the bank could have charged you overdraft rates if they wished. If people get stuck in overdrafts the bank will often offer a personal loan which has a lower rate to try help them.


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    #14
    sarahlulu
    Registered Users Posts: 295 ✭✭sarahlulu


    I totally misread the OP. I was under the impression that the bank had lodged a sum in the region of E1700 to the account. I have seen cases like this where the bank would arrange an interest free loan to repay the amount.

    This case is completely different. They did not in fact lodge anything to the account, you simply withdrew E10k that you didn't have. What did you think might happen?


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