Breach of mandate claims may be necessary if a bank has failed or refused to make a payment as a result of error on its part – or might have made a payment without the necessary authority in place.
In either circumstance, a customer may incur serious losses – including the goodwill of any creditors who have not received payments due as a result of the bank’s error.
If an error involving breach of mandate occurs, it is important to report this to the bank immediately – and give details of what has happened.
Breach of mandate might occur in the normal course of operating a bank account.
It can also occur if a bank account has been closed and payments such as direct debits or standing orders have not been transferred automatically to the new account opened, if this was part of the agreement.
In cases where a bank has failed to make a due payment from a customer’s account, the customer is usually able to make a claim for damages, as well as any future losses that might accrue as a result of the bank’s error.
In cases where a bank has made an unauthorised payment, under the law the payment is considered as having been made out of the bank’s own funds. Customers can claim for any loss incurred as a result of the error – as well as any future losses that might accrue as a result of the error and damages.
It is vital to contact Duncan Lewis banking and finance solicitors as soon as breach of mandate occurs – and when the details of what has happened are still clear in your mind.
Banks are likely to deny any liability or offer a small amount of compensation. However, breach of mandate can have serious consequences for both personal and business banking customers, including loss of goodwill among creditors and potentially affecting credit ratings if the error is repeated.
Breach of mandate on joint accounts can also cause problems for both named parties on the account – Duncan Lewis banking litigation solicitors can advise on all cases involving breach of mandate.
For expert legal advice on banking and finance litigation and Breach of Mandate, call Duncan Lewis Banking Litigation Solicitors on 0333 772 0409.