Mistaken Internet Payments
Internet banking is a convenient and common method for transferring money from one bank account to another. It is important that when you make an internet payment, you ensure that all the details being entered are correct. This is because if funds are transferred into the wrong account there is no guarantee that you will get your money back. It is also important to check your statements regularly and report any mistaken internet payments or deposits to your bank immediately.
A client made a mistaken payment out of his bank account via internet banking as he entered one digit of the other party’s BSB incorrectly. This resulted in the funds being transferred to an unintended recipient. He immediately notified his bank about the mistaken payment and was advised that they will investigate the matter. The client contacted CCLSWA for advice regarding his rights to a refund of the mistaken transferred funds.
CCLSWA advised the client that ASIC’s e-payments code sets out the process that banks need to follow in response to reported mistaken payments. The client was informed that under the e-payments code the bank is required to inform him of the outcome of their investigation into the reported mistaken internet payment within 30 business days. The client was made aware that in circumstances where the receiving bank has failed in its reasonable attempt to recover the money from the unintended recipient he will not be able to seek a refund from his bank as no such obligation exists under the e-payments code.