This is in South Australia in case it makes a difference.
My 16 year old son recently started a part time job. He gave the employer incorrect bank details by adding an extra digit in the middle of his bank account number. The employer entered the 10 digits into their payroll but either their payroll system or their banking software truncated the account number to 9 digits. Unfortunately, this 9 digit number was a valid bank account number at the same BSB.
Two payments went to this unintended recipient of around $350 in total. After we raised this with them, the employer has contacted their bank to initiate a process to get it back but the receiving bank has replied that the unintended recipient has refused to give the money back. Basically, they are saying tough luck.
This was reported to them more than 10 business days after the payments but less than 7 months. The epayments code says that up to 7 months, the receiving bank must take the money from the recipient if they are satisfied that it was not a valid payment. (I think the recipient gets 10 days to prove they are entitled to it). This has not occurred. I'm wondering if the epayments code applied to businesses sending money to other bank accounts or if it is only for consumer to consumer transactions?
If the epayments code does not apply in this case, is there anything similar?
Is there any recourse available to my son? If we wanted to pursue this further how would this work, who would we pursue and how would we get their details if it is the unintended recipient?
What about the employer? Their systems did not send the money to the 10 digit account number that was supplied but sent it to a 9 digit account number. Is there liability there?
I'm tempted to chalk it up to experience as a lesson in double checking numbers but it seems like a harsh punishment for a simple mistake and I wonder whether other checks and balances should have caught this and whether the banks should be doing more.
Any help or guidance would be most appreciated!
Many Thanks
$350 for a first life lesson about financial management and due diligent seems cheap, let your son be the initiator and learn from it. You're not gonna spoonfed him any longer.