You receive an SMS from your bank notifying you of a deposit. The payment is unexpected, and you have no idea where it came from.  What is your legal responsibility?

Every individual is expected to act lawfully, therefore if money is deposited into your account and you know it’s not yours, legally you must return it.

 

A Walter Sisulu University student, Sibongile Mani, was accidentally paid an amount of R14 million instead of R1,400 in June 2017 by a company that manages the National Student Financial Aid Scheme’s (NSFAS) finances. She was found guilty of theft and imprisoned after she spent over R800,000 of the money that she received from NSFAS.

 

It is crucial to understand the consequences of spending funds you received in error which may include:

• A court order or judgement directing you to pay back the money in full where failure to do so may result in a criminal charge for theft.
• The bank involved may elect to open a civil case against you.
• A criminal conviction and possible jail time.
• Your credit record may be adversely affected

If you receive monies in error, you should:

• Leave the money untouched unless otherwise instructed by your bank.
• Contact your financial institution as soon as possible to inform them of the situation.
• Ensure your own debit orders and payment obligations do not interfere with the total amount deposited in error.
• Be prepared to have the transaction reversed in full or transfer the total amount.

 

For more information, contact: TAbbotts@hammondpole.co.za