Santander is warning customers who have paid twice that they must return the cash

Santander is still in the process of recovering £130m it accidentally paid out to customers more than three years ago.

A payment error on Christmas Day 2021 meant around 75,000 payment transactions, averaging £1,733 each, were made incorrectly twice.

About 2,000 people and companies sent the money.

This meant that some customers were paid twice for the month, with some of the money coming directly from Santander’s own reserves.

The bank struggled to get its money back because it sent a large portion to clients of other banks.

And Santander’s efforts to recover money it mistakenly sent to customers is still ongoing more than three years later, The Sun reported.

This means that some users still have to return the funds they received in error.

A spokesperson from Santander said: ‘We worked with the recipient banks immediately after the problem occurred to recover most of the funds, but some recovery activities are still ongoing.’

This is Money spoke to two consumer advocates to find out if you’ll have to pay back money if you get money from a bank you’re not owed or if your business overcharges you, and what your rights are.

Do you have to pay back overpaid wages?

Martyn James, consumer advocate, says: ‘We’re sorry to disappoint you all, but there really is no such thing as free money. In fact, you are legally required to pay it back.

‘Of all the urban myths about finance, this is the one that people cling to the most. If a bank or company overcharges your account, you must pay the cash back – even if months have passed since the mistake.

‘It is illegal for customers to retain falsely credited money, and if they spend it they face a charge of falsely retaining credit under the Theft Act 1968.’

Scott Dixon, who runs the website The Complaints Resolver, added: ‘Employers are entitled to recover overpaid wages as you are legally not entitled to keep money you have been paid in error, although they should help you with a monthly repayment plan if necessary.

Martyn James added: ‘If you ‘accidentally’ spent some or all of the money, you can expect your bank or card provider to come up with an affordable repayment plan, ideally without interest.

»This shouldn’t damage your credit report either. Sometimes you might be able to prove that you expected a lump sum payment such as an inheritance and assumed that the deposit was mistakenly paid that amount.

‘It could – could – result in you waiving some of the money you’ve spent, but that’s very, very rare.

‘In cases where a lot of time has passed, the bank will have to justify why it took so long. In these cases, complain to the Financial Ombudsman.

‘The bank may be forced to accept a smaller payment or, in rare cases, be told it has waited too long.’

Did Santander overpay you? Get in touch: editor@thisismoney.co.uk