7 STEPS TO GET A COURT ORDER FOR THE REVERSAL OF ERRONEOUSLY TRANSFERRED MONEY

7 STEPS TO OBTAINING A COURT ORDER FOR REVERSAL OF FUNDS

In the age of electronic transfer of funds, it is not unusual that in the course of sending money to an account, an error could result in money being sent to an unintended account. This error could be due to multiple factors. Where there has been an erroneous transfer of money via USSD/ Internet Banking or Mobile banking, the banks usually require a court order to return such money to the sender's account.

We have successfully obtained orders to reverse sums erroneously transferred to the wrong accounts in many instances. For example, where a digit or more in the account number is switched (4223 instead of 4232), where a wrong bank is selected, where funds were sent to a dormant account, and many other examples. In any of these instances, the transfer is seen as an erroneous transfer. It is important to note that the particulars of the error must be glaring and explainable to be successful in obtaining a court order for errorneous transfer. Where it is a case of fraud or mistaken identity, the procedure is different and that can be found here.

STEP 1 - REPORT THE ERROR

This is the first and most important step in the process of obtaining the order. You must report the erroneous transfer at your bank and the bank that received the money. This ensures that the affected banks put a PND - Post No Debit instruction on the account where the money went. A  PND would prevent any withdrawals on the account for a limited period (Usually 24 hours) pending when a formal application for reversal would be made to court. As soon as the formal application is made, the money cannot be withdrawn and the account would be frozen. If the money is no longer in the account, such money cannot be reversed. 

We always advise that this report be done in writing or by email. This is to ensure that there is evidence of the date and time when the affected banks received the report. Where it is by letter, the letter can be presented/submitted at the nearest branch of the banks affected. Two copies of the letter should be printed and taken to the banks. One would be given to the bank, the other would be dated and time-stamped by the bank and returned to you. This is called the acknowledgment copy. The letter would usually be taken to the customer service or branch manager who would then sign, date, stamp and return the acknowledgement copy. ENSURE THE LETTER IS DATE-STAMPED BEFORE LEAVING. A sample of this letter to report an error is found at the end of this article.

Please note that the letter need not be typed. A handwritten note, with a photocopy as acknowledgment copy would do. Most banks would help you make a copy of your handwritten letter when you ask politely.

STEP 2 - OBTAIN EVIDENCE REFLECTING THE ERROR

There are 2 pieces of evidence that are needed. The first is the transaction receipt and the other is the Statement of Account of the day of the transaction. The transaction receipt is available where the transfer was done via a mobile app or through internet banking. An email from your bank could also serve as evidence. Sometimes, an SMS alert could be used. But the SMS alert must carry the details of the transaction i.e 

To obtain a statement of account, you can apply for the statement of that day from the mobile app or internet banking or by applying in your name for a statement of account that covers the erroneous transaction from the customer service rep at a branch of your bank. This is usually done for a token fee deductible from the applicant's account

STEP 3 - ENGAGE A LAWYER TO PREPARE AND FILE THE NECESSARY COURT PROCESS

After serving the Banks the letter, you must engage a lawyer to help prepare and file the court papers that would eventually result in the court order you request. The lawyer would usually charge you some money for preparing and filing the court papers. However, engaging a lawyer need not be expensive. PELICAN CREST LEGAL PRACTITIONERS offer clients a simple, easy, timely, and cost-effective service to obtain a reversal order for an erroneous transfer. 

STEP 4 - SERVE THE COURT PROCESSES ON THE BANKS CONCERNED

After the processes are filed in court, the application would be given a case number, and the case filed would be assigned to a judge. The judge would then decide the earliest time the case can be heard and then give a date for all the parties to be heard. The parties are the applicant (you), the bank, and the recipient of the erroneous transfer. All the parties have a right to come to the court to make a representation as to why the court should or should not give the order for reversal. 

When the judge gives a date for the hearing of the application, this date would be communicated to all the parties through the messengers of the court called the court bailiff. This is usually done for a fee. 

STEP 5 - ATTEND COURT FOR THE HEARING OF THE APPLICATION FILED BY THE LAWYER

On the date fixed by the court for the hearing of the application as described in STEP 4, you would have to be present in the court premises to identify as the applicant. Your presence may sometimes not be necessary where the judge does not so demand. Your lawyer shall then inform the court of your application and ask the court for an order of reversal. Here, the court would make an oral pronouncement of its order, and the case would be concluded.  

STEP 6 - APPLY FOR A CERTIFIED TRUE COPY OR ENROLLMENT OF ORDER OF COURT

After the case is heard, as in STEP 5, your lawyer shall apply for a written and documented copy of the oral order of the court that was pronounced. This would be typed out and signed by the judge who made the order. This physical, written, typed, and printed document is a Certified True Copy or Enrollment of Order.

STEP 7 - PRESENT THE CERTIFIED TRUE COPY OR ENROLLMENT OF ORDER TO THE BANK

Once the order is obtained, it would then be delivered to the bank that received the erroneous money, and they shall begin the process of reversing the funds. Some banks would insist on verifying the court order before they honor it. This could result in some delay but once the order is confirmed to be legitimate, the bank must comply with the order.

As an Asset Recovery and Dispute Resolution Lawyer, my practice focuses on resolving complex financial disputes and recovering lost assets. I provide strategic legal solutions for businesses and individuals seeking to recover financial losses. In particular, I specialize in helping companies and individuals recover financial losses resulting from fraud, breach of contract, or non-payment.  

If you have further questions or would like me to assist you in navigating the process, kindly reach out to me by booking a consultation at https://selar.com/134122. I would be sure to assist you.