Bank transfers made in error are not gifts which can be spent, a judge once again reminded clients who receive unaccounted for money in their accounts.

The Star reports in a case before the Northern Cape High Court (Kimberley), First Rand Bank approached the court for an order that one of its clients pay an amount of R935 950 back to the bank.

The court was told that in August 2020, the bank’s representative telephonically contacted the client to advise him about a more beneficial investment product in the form of a Money Maximiser.

The respondent subsequently authorised the bank official to proceed with the investment product. The bank said that when its official effected the transfer of the money to the respondent’s Money Maximiser account, it was made in error.

The respondent, however, used the funds held in the Money Maximiser account until only R5 912 was left. 

The bank maintained that the respondent was neither legally nor factually entitled to withdraw, use, or disburse the funds.

The respondent admitted receiving the money and confessed to having used the funds mainly for the renovation of his home.

The court said the respondent knew where the money came from as he had earlier had a discussion with the bank official, thus he could not have assumed it was as a result of some revolving credit.

‘From the foregoing, there can be no doubt that enrichment took place at the expense of the applicant (the bank). The respondent received and used the money that was deposited into his bank account well knowing that it was not due to him. There is no justification for his use of the transferred amount,’ the court said in ordering the client to reimburse the bank.

Full report in The Star