A judge just ruled whether a bank that made a payment in error has a right to get the money back. I’m Amy E. Feldman.
In 2020, Citibank owed money on a 1.8 billion dollar loan to several lenders, and was paying down that loan down over a three year period, but in August, instead of paying the 7.8 million dollar interest payment owed that month, it accidentally paid the whole $1.8 billion. That’s gotta be embarrassing if you’re a bank. Also, probably hard to ask, “hey guys, you know that money that I owe you but not all right now? Could you give it back?”
Several of the lenders said, “no way. It’s in our pockets now.” So Citi sued to get it back, and the appeals court just ruled in Citi’s favor, saying that there were too many red flags that the payment was an accident, and those who received it should have known it was sent in error. If only banks asked us if we meant to pay if we later realize our impulse buys were made in error.