WHO, WHAT, WHY? The Magazine answers... A woman is awaiting sentencing after spending £135,000 that was wrongly credited to her bank account. But what does English law say about spending mistakenly received money?
WHO, WHAT, WHY? The Magazine answers... A woman is awaiting sentencing after spending £135,000 that was wrongly credited to her bank account. But what does English law say about spending mistakenly received money?
In the board game Monopoly, there's a Chance card that says "Bank error in your favour - collect £200".
In the board game Monopoly, there's a Chance card that says "Bank error in your favour - collect £200".
In the game it's a chance to put a hotel on Mayfair, but in real life you could get yourself in serious trouble by not reporting an error.
In the game it's a chance to put a hotel on Mayfair, but in real life you could get yourself in serious trouble by not reporting an error.
Sarah Jane Lee, 20, from Blackburn in Lancashire, had a bank balance of £6.59 when she discovered that a mistake by the Abbey bank had caused the figure to rocket to £135,000.
Sarah Jane Lee, 20, from Blackburn in Lancashire, had a bank balance of £6.59 when she discovered that a mistake by the Abbey bank had caused the figure to rocket to £135,000.
THE ANSWER If an amount is too large to be rightfully yours and you knowingly spend it, you're in trouble
THE ANSWER If an amount is too large to be rightfully yours and you knowingly spend it, you're in trouble
She allegedly spent the money, giving tens of thousands to friends and buying a holiday, various appliances and a new sofa. But it's now end-of-the-line time after she admitted "retaining wrongful credit" and 11 specimen charges of theft.
She allegedly spent the money, giving tens of thousands to friends and buying a holiday, various appliances and a new sofa. But it's now end-of-the-line time after she admitted "retaining wrongful credit" and 11 specimen charges of theft.
The 1968 Theft Act says "A person is guilty of theft if he dishonestly appropriates property belonging toanother with the intention of permanently depriving the other of it".
The 1968 Theft Act says "A person is guilty of theft if he dishonestly appropriates property belonging toanother with the intention of permanently depriving the other of it".
It goes on to say "A person is guilty of an offence if- (a) a wrongful credit has been made to an account kept by him or in respect of which he has any right or interest; (b) he knows or believes that the credit is wrongful; and (c) he dishonestly fails to take such steps as are reasonable in the circumstances tosecure that the credit is cancelled."
It goes on to say "A person is guilty of an offence if- (a) a wrongful credit has been made to an account kept by him or in respect of which he has any right or interest; (b) he knows or believes that the credit is wrongful; and (c) he dishonestly fails to take such steps as are reasonable in the circumstances tosecure that the credit is cancelled."
The act has been updated over the years but the principle remains the same.
The act has been updated over the years but the principle remains the same.
Rod Fletcher, a partner in fraud and regulation at legal firm Russell, Jones and Walker, said "appropriating" could mean keeping something you had found which you knew to be valuable.
Rod Fletcher, a partner in fraud and regulation at legal firm Russell, Jones and Walker, said "appropriating" could mean keeping something you had found which you knew to be valuable.
WHO, WHAT, WHY? A regular part of the BBC News Magazine, Who, What, Why? aims to answer some of the questions behind the headlines
WHO, WHAT, WHY? A regular part of the BBC News Magazine, Who, What, Why? aims to answer some of the questions behind the headlines
"A defence might be you had taken abandoned property, say if you had found a bicycle on the street which had clearly been abandoned. Where it is a large amount of money nobody's going to be able to argue that. It comes down to common sense. The more money it is the more obvious it is."
"A defence might be you had taken abandoned property, say if you had found a bicycle on the street which had clearly been abandoned. Where it is a large amount of money nobody's going to be able to argue that. It comes down to common sense. The more money it is the more obvious it is."
"You might be able to argue that you did not notice your account receiving £100. If your account had a lot of money, perhaps more."
"You might be able to argue that you did not notice your account receiving £100. If your account had a lot of money, perhaps more."
But £135,000 is likely to be noticed by most millionaires, let alone someone flirting with an overdraft.
But £135,000 is likely to be noticed by most millionaires, let alone someone flirting with an overdraft.
And as Brian Capon, of the British Bankers' Association points out, people who think they've had a windfall should consider the opposite situation. How would they feel if someone else had wrongfully been paid their money by the bank?
And as Brian Capon, of the British Bankers' Association points out, people who think they've had a windfall should consider the opposite situation. How would they feel if someone else had wrongfully been paid their money by the bank?
"If a sum is put into your account, it doesn't mean it is actually yours. Let's suppose some money was due to you and for whatever reason that was credited to my account you would notice that money wasn't in that account and you would want it back."
"If a sum is put into your account, it doesn't mean it is actually yours. Let's suppose some money was due to you and for whatever reason that was credited to my account you would notice that money wasn't in that account and you would want it back."
But there are occasions when a mix-up might be forgiven.
But there are occasions when a mix-up might be forgiven.
"In certain circumstances you could argue you were in fact expecting a small amount. For a large amount it would be very difficult to argue that you assumed that was your money."
"In certain circumstances you could argue you were in fact expecting a small amount. For a large amount it would be very difficult to argue that you assumed that was your money."
But resorting to the law is only possible if your quarry remains in the jurisdiction. The Mail on Sunday reported this week that a Polish dishwasher had fled the country after being overpaid £8,000 by the luxury London hotel that employed him. The hotel is suing.
But resorting to the law is only possible if your quarry remains in the jurisdiction. The Mail on Sunday reported this week that a Polish dishwasher had fled the country after being overpaid £8,000 by the luxury London hotel that employed him. The hotel is suing.
Mr Fletcher suggested that while, if the allegations were true, the dishwasher could feasibly be charged with a criminal offence, extradition was hard to envisage.
Mr Fletcher suggested that while, if the allegations were true, the dishwasher could feasibly be charged with a criminal offence, extradition was hard to envisage.
Those who get dealt a Chance card should take heed.
Those who get dealt a Chance card should take heed.
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