[Image: Gencraft / AI]
Bank transfers made in error are not windfalls to be squandered, a judge sternly reminded a client who found unexpected riches in his account—and spent them.
Before the Northern Cape High Court in Kimberley, First Rand Bank sought to reclaim R935,949.83 from a client with an academic doctorate, who had drained the mistakenly deposited funds. The saga began in August 2020, IOL reports, when a private client banker contacted the respondent, offering a higher-interest investment product—the Money Maximiser—compared to his existing Money-On-Call account.
As treasurer of a trust and a client with multiple personal accounts at the bank, the respondent authorised the transfer. But an error occurred: R962,449.83 was deposited into the respondent’s personal cheque account instead of the trust’s account. Soon after, R962,149.00 was moved into the Money Maximiser account—funds not his to claim.
Rather than alerting the bank, the respondent tapped into the money, leaving only R5,911.52. His explanation? He believed the sum was a form of revolving credit. Yet, the court found this reasoning untenable. Having discussed the transfer with the bank official, he could not plausibly assume the windfall was his to spend.
The bank had since settled with the trust, paying R987,769.76 to resolve any claims arising from the misdirected transfer. Still, the respondent, who admitted to using the money primarily for home renovations, faced the bank’s demand for repayment. Though he proposed repaying R6,000 monthly, the bank rejected the offer.
In delivering judgment, the court was unequivocal: “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.
Mistaken wealth, the court reminded all, does not become rightful treasure merely because it is within reach.
[Source: IOL]
