In May, Yorkshire Water made a surprise payment of more than £3,500 into a Leeds customer's bank account. The customer assumed it was an error and expected to be told to repay it. Exactly a month later, another payment of £3,300 arrived. When contacted, Yorkshire Water said it did not recognize the payment reference and did not think it had made the payment.
The customer's bank stated it could do nothing to stop or return the payments. Both companies took the issue lightly, advising the customer to 'enjoy' the money. The customer transferred the funds into a savings account untouched, concerned it might be part of a money laundering scam.
How the Error Was Uncovered
The most extraordinary aspect of this case is the insouciance of Yorkshire Water and the ease with which an explanation was found when Guardian Money questioned the unsolicited payments. The company had gifted the customer almost £7,000 in four weeks and would likely have continued paying monthly if not for the intervention.
The press office quickly realized what customer service had missed: the dates of the payments exactly matched the utility company's staff payroll. It was discovered that an employee had updated their new bank details incorrectly on the system, causing wages to be paid to the customer. Why the employee did not notice missing two months' salary remains a mystery.
Recovery and Compensation
Once galvanized, Yorkshire Water reclaimed the money and paid the customer £100 as a 'thank you'. This seems a paltry reward for their honesty and tenacity. The bank also faces questions: it had a regulatory duty to investigate and return the payments once reported. Advice to 'enjoy the windfall' could have led to a criminal conviction under the Theft Act 1968, which makes hoarding or spending accidental payments an offence.
