FNB incorrect payment reversal

I

inBEEGsheet

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Hello,

A recipient made a payment into an account of mine that has not been used in a while. This account was sitting at a negative balance. The person that transferred the funds into my account has been given a 'recall funds form' and will have to wait 3-5 working days for the funds to be transferred back to them.

My questions, however, is will the full amount be transferred back to the person even when the account was at a negative balance?

Please help.
 
inBEEGsheet said:
Hello,

A recipient made a payment into an account of mine that has not been used in a while. This account was sitting at a negative balance. The person that transferred the funds into my account has been given a 'recall funds form' and will have to wait 3-5 working days for the funds to be transferred back to them.

My questions, however, is will the full amount be transferred back to the person even when the account was at a negative balance?

Please help.
Click to expand...

Have you asked the bank?
 
Yes, it was FNB. They said the person who transferred the money incorrectly will need to fill in that form, which they now have. They suggested I make the payment myself but obviously, I am not able to transfer the full amount back into their account. I really just want to know how f*cked I am.
 
An EFT payment was made into your FNB account that is in a negative (overdraft/you owe FNB). The other party will need to fill in that form etc. FNB will then require authorization from you (afaik) to allow them to transfer these funds back to the other party.

The problem comes in if you do not have an available balance to transfer back. So if you have a R2000 overdraft and R0 is available, they cannot process the reversal.
 
Shouldn't it be the other persons problem if the bank doesn't allow the full amount / or any amount (if zero available) to be returned. You can't be held responsible for their mess up.
Thank them for settling the overdraft/negative balance (You wont be paying interest) and then pay them R20.00 monthly for whatever they couldn't get back.
 
Really off topic, just wanna say, big big respect to you man for acknowledging this.

You won't believe the number of people that accidentally slip and miss a number when making payment (and the bank then just assumes you left a 0 off and adds it on, resulting in the funds going into some other account), and that person that got the cash incorrectly drawing the cash out and spending it or refusing to pay it back
 
As1974a said:
Shouldn't it be the other persons problem if the bank doesn't allow the full amount / or any amount (if zero available) to be returned.
Click to expand...

If I pay money into your account by accident, I can claim it back. The bank would be the starting point. The bank contacts you and you e.g. refuse. I can still institute a claim against you, following the legal route etc - although this is not as easy.
 
I understand it can be claimed back, but the issue is the negative balance. How will the bank handle that? Will they allow the full amount to be refunded and send the account back to negative (assuming it not at the moment). If so then ok. If not, and the person can't afford to pay back the difference then its not fair on the receiving person to be put in a position to refund money they didn't have because of some other persons mistake.

Not like he purposely used the money knowing it wasn't his.

I'm sure the bank will allow the full refund though and restore the account as it was, with the negative balance. the payer should also bear responsibility of their mistake as well.

The outcome would be interesting as this seems to happen a lot with incorrect payments.
 
TheJman said:
You won't believe the number of people that accidentally slip and miss a number when making payment (and the bank then just assumes you left a 0 off and adds it on, resulting in the funds going into some other account), and that person that got the cash incorrectly drawing the cash out and spending it or refusing to pay it back
Click to expand...
There wasn't a mistake here. He used his old dormant account instead of new.
 
As1974a said:
If not, and the person can't afford to pay back the difference then its not fair on the receiving person to be put in a position to refund money they didn't have because of some other persons mistake.
Click to expand...

Indeed, the outcome will be interesting. FNB claims that Insufficient Funds could cause a reversal to fail and that is the case in this instance.
 
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