Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

Silly Banking Error Costs Woman $36K

Saturday, February 9, 2013 - 10:45 PM
In case it is needed, another reminder to check your accounts frequently - because the mistake you catch may be your own.   Oh, and be sure to check regularly, not once every couple of years. 

From The Guardian(UK) via Business Insider:
It was a sickening, gut-wrenching moment when, one evening in October 2012, Sally Donaldson checked her bank account and realised she had made the silliest financial mistake of her life.

Two years earlier, hairdresser Sally had organised for her monthly pay, £1,000, to be transferred from her HSBC account to the joint account at Nationwide building society she shares with her husband. But on that October night, the mother of two discovered she had made a simple but calamitous error.

It's a mistake anyone can make. To transfer money online from one account to another, you simply tap in the recipient's name, their sort code [note:  this is the UK's equivalent of the routing code] and account number. But Sally had incorrectly typed in just one of the eight digits in the account number – and the money was sent to the wrong person.

What makes her story so extraordinary, though, is that she made the mistake in May 2010. Every month since – for more than two years – her pay was going into someone else's Nationwide account. And now, to her horror, Sally is discovering she has almost no chance of getting back a penny of the £26,650 transferred in error.

Read more

LordB originally posted a link to the story on FWF.
pearlbrownpearlbrown1,473 posts since
Nov 2, 2010
Rep Points: 6,403
1. Sunday, February 10, 2013 - 6:14 PM
This horror story really demonstrates (again) the weaknesses of the banking system (ACH, etc.).  For every transfer, both bank and sender should thoroughly check all the relevent information (name, address, amount, destination, etc., etc.).  But no, once Sally was a little careless (in both the account number and in at least confirming arrival of the first transfer); that was it.  The worse matter is nobody at the banks took the responsibility to return the fund. 

It is a sad, confusing, and evil world.  Be careful out there, folks; nobody cares to protect you if you do not take every measure to protect yourself.
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
2. Tuesday, February 12, 2013 - 6:26 PM
Call me old fashion but this article is one of the reasons I refuse to do online banking.  Mistakes can be made by anyone but I like to be in front of a teller when handling money.  What a horror to that poor woman but unfortunately, she did not take the protection she should have by double checking her account.
paoli2paoli21,401 posts since
Aug 10, 2011
Rep Points: 6,135