Yorkshire Water inadvertently transferred a total of £6,800 into a customer's bank account over two months, and when the recipient reported the error, both the utility company and the bank advised them to keep the money. Only after Guardian Money contacted Yorkshire Water did the company realize the payments were wages intended for an employee.
How the Mistake Happened
In May, the customer's partner received a payment of more than £3,500 from Yorkshire Water. Assuming it was an error, they waited for instructions to return it. Exactly one month later, another payment of £3,300 arrived. The customer contacted Yorkshire Water, which said it did not recognize the payment reference and did not believe it had made the payment. The bank also said it could do nothing to stop or return the funds. Both organizations took the issue lightly and told the customer to enjoy the money.
Guardian Money Investigation
The customer, concerned it might be a money laundering scam, transferred the funds into a savings account and contacted Guardian Money. The newspaper's intervention prompted Yorkshire Water's press office to investigate. They discovered that the dates of the payments exactly matched the utility company's staff payroll. An employee had updated their bank details incorrectly, causing wages to be paid to the customer's partner instead. It remains unclear why the employee did not report missing two months of salary.
Resolution and Compensation
Once the error was identified, Yorkshire Water reclaimed the money and paid the customer £100 as a thank you for their honesty. The company described the initial response from customer service as a mistake. The bank also faced scrutiny for failing to investigate and return the payments, which is a regulatory duty. Keeping or spending accidental payments can be an offense under the Theft Act 1968.
Consumer Advice
The case highlights the importance of reporting mistaken payments and not spending them. Consumers should contact their bank and the sender, and if necessary, seek assistance from consumer champions or regulatory bodies.
