header-logo header-logo

Customer payments: Held to account

30 September 2020 / Chris Bushell , Ceri Morgan
Issue: 7904 / Categories: Features , Profession , Commercial
printer mail-detail
28458
Processing customer payments: key litigation risks for banks, examined by Chris Bushell & Ceri Morgan

In brief

  • Quincecare duty of care (payment made).
  • Dishonest assistance (payment made).
  • Breach of contract claims (payment not made).

In a trend of recent cases, the court has considered the duties owed by banks to their customers in relation to processing payments into and out of their current or depository accounts. These claims are remarkable both because of the variety of different but intertwining causes of action which have been pursued, and because they stem from such an unremarkable and essential function.

The common theme is that the customer’s payment mandate was made in circumstances where the bank (allegedly) was, or should have been, alerted to the existence of fraud or inappropriate activity in relation to the account. The judgments emphasise the public policy of enlisting banks and financial institutions in the fight against financial crime and money laundering, which has influenced the court’s decision as to whether the relevant

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Freeths—Ruth Clare

Freeths—Ruth Clare

National real estate team bolstered by partner hire in Manchester

Farrer & Co—Claire Gordon

Farrer & Co—Claire Gordon

Partner appointed head of family team

mfg Solicitors—Neil Harrison

mfg Solicitors—Neil Harrison

Firm strengthens agriculture and rural affairs team with partner return

NEWS
Conveyancing lawyers have enjoyed a rapid win after campaigning against UK Finance’s decision to charge for access to the Mortgage Lenders’ Handbook
The Crown Prosecution Service (CPS) has launched a recruitment drive for talented early career and more senior barristers and solicitors
Regulators differed in the clarity and consistency of their post-Mazur advice and guidance, according to an interim report by the Legal Services Board (LSB)
The Solicitors Act 1974 may still underpin legal regulation, but its age is increasingly showing. Writing in NLJ this week, Victoria Morrison-Hughes of the Association of Costs Lawyers argues that the Act is ‘out of step with modern consumer law’ and actively deters fairness
A Competition Appeal Tribunal (CAT) ruling has reopened debate on the availability of ‘user damages’ in competition claims. Writing in NLJ this week, Edward Nyman of Hausfeld explains how the CAT allowed Dr Liza Lovdahl Gormsen’s alternative damages case against Meta to proceed, rejecting arguments that such damages are barred in competition law
back-to-top-scroll