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ATM mistake costs him $750
He transfers money to wrong account number but bank can't return cash to him
By Ho Lian-Yi
December 14, 2008
ATM ERROR: Gerald at the POSB branch in Ang Mo Kio, where he made the wrong transfer. --TNP PICTURE: HO LIAN-YI
HE inadvertently transferred $750 to the account of a stranger - and is upset that he can't get his money back.
His bank has been unable to contact the account-holder and has told him it can't just deduct the money from the 'wrong account'.
The bank security officer, who wanted to be known only as Gerald, 32, wanted to repay a debt to his friend via electronic transfer from his POSB savings account on 21Nov.
But he keyed in a 'totally wrong' account number at a POSB ATM in Ang Mo Kio.
He made the transfer at 5.33pm but realised his mistake only after 6pm, when most bank branches are closed.
So he took the MRT and rushed to The Centrepoint POSB branch, which he knew was still open. 'I have never run so fast in my life before,' he said.
He reported the wrong fund transfer at 7.05pm.
He thought that would settle it. But when he didn't get back his money after several days, he called POSB and was told it could not simply transfer the money back as the account-holder could not be contacted.
'I thought it was clear-cut,' he said. 'So does it mean that if the person refuses to return my money, it's gone?'
The bank told him it had sent a letter and also tried calling the account-holder, but had yet to get a reply.
He was upset because he was running out of money. After the wrong transfer, he repaid his friend, which meant he had paid $1,500 in all. That's almost his entire monthly wage of about $1,600.
Gerald, who is divorced, said he was barely keeping up with the maintenance he owed his wife and 5-year-old daughter. And he had his own bills to pay.
His POSB savings account had only $3.10 left.
He said he felt like he was 'begging' the bank for his own money. 'I don't think it's right,' he said.
A spokesman for DBS, which owns POSB, said: 'The bank will need to get the authorisation of the transferee before any withdrawals can be made from his account.'
Other local banks have a similar policy.
Mr Patrick Chew, head of delivery at OCBC Bank, said it would do its best to help a customer in such a situation to retrieve his money. But it also has a responsibility to the other party.
He said: 'Banks cannot debit a customer's account simply on the instructions of another customer who claims that he has made a wrong transfer.'
He said the number of customers crediting the wrong account while making fund transfers is 'not significant'.
A United Overseas Bank spokesman also said such errors are not common.He said that if the other party refuses to return the money, UOB would inform the customer, who can then seek other means to obtain the refund.
Both banks said customers should be careful and make sure all details are correct when transferring money.
But what recourse is there once a mistake has been made?
Not so clear-cut
While it is an offence to dishonestly retain money, such cases are not so clear-cut because the account-holder needs to know that the money does not belong to him.
Lawyer SSDhillon noted that the mere fact that the money was received by the account-holder would not make it an offence if he didn't know it was not meant to be for him.
But it could be an offence if the account-holder wilfully ignores a letter from the bank informing him of the error and proceeds to spend the money. He said a civil lawsuit would be the best course of action.
DBS and POSB banks see an average of six cases of money transfers to a wrong account every day, according to a 2006 report.
This was about one in every 5,000 transfers.
The banks did not give updated figures when asked.
ATM mistake costs him $750
He transfers money to wrong account number but bank can't return cash to him
By Ho Lian-Yi
December 14, 2008
ATM ERROR: Gerald at the POSB branch in Ang Mo Kio, where he made the wrong transfer. --TNP PICTURE: HO LIAN-YI
HE inadvertently transferred $750 to the account of a stranger - and is upset that he can't get his money back.
His bank has been unable to contact the account-holder and has told him it can't just deduct the money from the 'wrong account'.
The bank security officer, who wanted to be known only as Gerald, 32, wanted to repay a debt to his friend via electronic transfer from his POSB savings account on 21Nov.
But he keyed in a 'totally wrong' account number at a POSB ATM in Ang Mo Kio.
He made the transfer at 5.33pm but realised his mistake only after 6pm, when most bank branches are closed.
So he took the MRT and rushed to The Centrepoint POSB branch, which he knew was still open. 'I have never run so fast in my life before,' he said.
He reported the wrong fund transfer at 7.05pm.
He thought that would settle it. But when he didn't get back his money after several days, he called POSB and was told it could not simply transfer the money back as the account-holder could not be contacted.
'I thought it was clear-cut,' he said. 'So does it mean that if the person refuses to return my money, it's gone?'
The bank told him it had sent a letter and also tried calling the account-holder, but had yet to get a reply.
He was upset because he was running out of money. After the wrong transfer, he repaid his friend, which meant he had paid $1,500 in all. That's almost his entire monthly wage of about $1,600.
Gerald, who is divorced, said he was barely keeping up with the maintenance he owed his wife and 5-year-old daughter. And he had his own bills to pay.
His POSB savings account had only $3.10 left.
He said he felt like he was 'begging' the bank for his own money. 'I don't think it's right,' he said.
A spokesman for DBS, which owns POSB, said: 'The bank will need to get the authorisation of the transferee before any withdrawals can be made from his account.'
Other local banks have a similar policy.
Mr Patrick Chew, head of delivery at OCBC Bank, said it would do its best to help a customer in such a situation to retrieve his money. But it also has a responsibility to the other party.
He said: 'Banks cannot debit a customer's account simply on the instructions of another customer who claims that he has made a wrong transfer.'
He said the number of customers crediting the wrong account while making fund transfers is 'not significant'.
A United Overseas Bank spokesman also said such errors are not common.He said that if the other party refuses to return the money, UOB would inform the customer, who can then seek other means to obtain the refund.
Both banks said customers should be careful and make sure all details are correct when transferring money.
But what recourse is there once a mistake has been made?
Not so clear-cut
While it is an offence to dishonestly retain money, such cases are not so clear-cut because the account-holder needs to know that the money does not belong to him.
Lawyer SSDhillon noted that the mere fact that the money was received by the account-holder would not make it an offence if he didn't know it was not meant to be for him.
But it could be an offence if the account-holder wilfully ignores a letter from the bank informing him of the error and proceeds to spend the money. He said a civil lawsuit would be the best course of action.
DBS and POSB banks see an average of six cases of money transfers to a wrong account every day, according to a 2006 report.
This was about one in every 5,000 transfers.
The banks did not give updated figures when asked.
