|
 |
Home >> Accounts
Paycheck Incorrectly Deposited
My husband's paychecks are direct deposited into his account, and by court order, part of his check is direct deposited into his ex-wife's account. The payroll department recently forgot to pay my husband for two days of work and added a second direct deposit for the two days. However, they accidentally put all of the funds from the two days into the ex-wife's account.
The company told us that they would try to reverse the deposit, but my husband's ex-wife has already gotten the money out of the account, and her bank informed us that they would not return the money and cause her to overdraft. The direct deposit was in my husband's name and his name is not on her account. How should we go about rectifying this situation? What can we do to get the bank to return the money to my husband's company, so they can rightly deposit it into my husband's account?
|
Untitled
|
 It would be wonderful if everyone who received a mistaken payment such as this would return it, but unfortunately that's not what happens. The bank that received the funds was permitted under the rules that apply to this type of payment to credit the funds to the account number listed in the payment instructions, even if the name on the instructions didn't match - although if it had noticed the discrepancy, it should have returned it. Banks receive thousands of payments every day from the automated clearing houses, and not every name/account number mismatch will be detected. At this point, unless the ex-wife returns the funds voluntarily, you can't get the bank to return your husband's money.
The payroll department slipped up in this situation, but the error appears to be their responsibility. They have not yet paid their employee the money that is due him. Whether they are able to collect those funds back from your husband's ex-wife doesn't have anything to do with the fact that they still owe him the money.
What might get this problem resolved is for your husband to get the court's approval to short a future payment due his ex-wife by the amount that she was paid in error. Your husband should take this approach if his employer isn't willing to pay what it owes him, unless they're repaid for the erroneous payment. This adjustment should not be done this way without getting court approval, however.
Published on BankingQuestions.com 4/02/08
|
| |
|
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
