By Shabab Gulfraz
As technology and banking moves more onto the internet, it is little surprise every year tens of millions of pounds goes missing. Now before you all start thinking internet banking must have a flaw, its not the bank but us the individuals that in error send money which ends up not with the person it was intended for.
The issue has become a concern over time because 5 out of 6 of us have tried online or mobile banking, and it is estimated that nearly 60 percent of all transactions will be electronically conducted within the next few year by The British Bankers Association. This means the issue is of real concern considering several billion electronic transactions are made in the UK alone per annum.
Up till now, banks had little choice but to say sorry, it’s your fault for sending the money to the wrong account and this it. You would be hundreds if not thousands of pounds out of pocket because someone too greedy to return your funds knowing they are not entitled to the money would fail to return it to the right full owner.
Now, banks such as HSBC, Nationwide have became the first few of the largest banks in the UK to amend their terms and conditions so that if their customers fail to return monies not belonging to them, then they will claw back the amount disputed from their customers account and place it in a holding account.
For once, I must say the banks need to be applauded for actually taking this step. Why, because they are pro actively protecting the service user.
Any customer who has received a payment in error will be written to, and if they fail to respond, the monies will be taken out of their account. The change means this is the most radical attempt by banks to do the right thing for innocent users who have entered a digit or two wrong, and their money has gone to the wrong person.
So what can you do to avoid paying the wrong person. I would suggest double if not treble check the digits you enter. I would also check with the person receiving the transfer that the details are correct. If you are making a large transfer, then go to the branch, if the cashier makes a mistake its their fault not yours!
It would be interesting to hear from our readers of their experiences if electronic transactions have gone wrong. Please tell us how helpful your bank was, and also if you managed to get the money back.