Funds of Faith-When Free Money is not Free
Publication
Funds of Faith-When Free Money is not Free
</h1 >
“Like a partridge that hatches eggs it did not lay, is the man who gains riches by unjust means. When his life is half gone, they will desert him, and in the end, he will prove to be a fool.”- Jeremiah 17:11
Imagine waking up one random morning to find a huge amount of money sitting in your bank account with no explanation whatsoever. For some, this sudden appearance of unexplained funds may trigger red flags. For others, this is immediately hailed as a miracle – perhaps the result of prayer and divine intervention. Many people have clung firmly to the idea of being blessed with ‘miracle money’, particularly in trying times. However, you should know that, legally, not every unexpected credit in your bank account is a cause for jubilation. This article explores the legal framework governing mistaken bank transfers and the potential consequences of dealing with these funds.
The case that sparked debate
On 22 June 2025, news circulated online regarding a trader who had been remanded into lawful custody for allegedly ‘stealing’ money that had been mistakenly deposited in her bank account. Reports[1] indicated that she had withdrawn and spent the funds without notifying her bank or attempting to verify their source, and resisted all efforts by the (crediting) bank to retrieve the money. This quickly gained traction, with some wondering how a person can be accused of stealing money that appeared in their own bank account? Does the mere presence of money in your account make it legally yours?
Unjust enrichment and the bank’s right to recover
Generally, where a customer’s bank account has been mistakenly credited, the crediting bank (or the true payor) is entitled to use all reasonable efforts to recover the funds or to bring an action in law to recover those funds. This is based on the equitable principle of unjust enrichment arising from the common law remedy of restitution.
The law takes the view that unjust enrichment occurs when a person receives a benefit that they are not legally entitled to, and it would be unfair for them to retain that benefit at the expense of some other person.[2] The law considers it as unjust enrichment if you keep or use money that was accidentally paid into your account (even if you did not ask for it) because you have no legal right to it, and the rightful owner (the payor) suffers a loss.
In the case of United Overseas Bank v Jiwani[3], the plaintiff bank mistakenly credited the defendant’s account twice with the sum of USD 11,000, which the defendant used for the purchase of a hotel. The court held that despite the defendant’s use of the funds, the bank was entitled to recover the amount wrongly credited. This was because the defendant could not simply rely on the fact of the mistaken credit to retain the money.
What if you have already spent the money?
Although there is a general right to recover mistaken payments, that right is not absolute. In some situations, recovery may be barred where the recipient of a mistaken credit transfer acted in good faith and changed his/her position as a result of the transfer. The scope and limits of this principle were set out in United Overseas Bank v Jiwani, where the court highlighted that, in some cases, it would be inequitable to require a customer to repay money mistakenly paid into his/her account. Thus, a customer may only retain the benefit of a mistaken credit transfer where it is established that:
- the bank had misrepresented, to the customer, the balance on their account (i.e. communication that the account balance is correctly and authoritatively stated and not a mere posting of a credit entry);
- the customer was misled by the bank into believing that they had more money than they actually had; and
- that the customer had (in good faith and in reliance on the mistaken belief) altered his position in a way which would make it inequitable for him to be ordered to repay the money.
In particular, the court highlighted that a bank may be estopped from recovering mistaken payments if the customer (in reliance on the bank’s representation) has changed his position such that repayment would be inequitable. However, these exceptions are not always straightforward. In most cases, simply spending the money does not prevent the bank from recovering it. It must be demonstrated that there has been a detrimental change in his mode of living or financial position that would not have occurred but for the mistaken belief, and the customer must be unaware of the bank’s mistake.
In Lloyds v Brooks[4], where the bank had credited the customer with sums of money she was not entitled to, the court held that the bank was estopped from recovering the money as the bank had misled the customer with the wrong information about her account balance. Although the court accepted that the payments were made under mistake of fact, the court found that based on the customer’s conduct, it was evident that she honestly believed she was entitled to the sums credited to her account and that the customer demonstrated that in reliance on the bank’s statements, she spent more money than she otherwise would have, altering her position to her detriment.
Thus, where the recipient has altered his/her position to her detriment, reasonably believing that the money mistakenly credited to his/her account was due to him/her, and the recipient did not act fraudulently, it will be inequitable to require the recipient to repay the money.
Criminal implications
Beyond civil liability, there may be criminal consequences for spending money that was mistakenly credited to your account. Once you are notified of the mistake, keeping or using those funds can be considered as stealing.
Under the Criminal Offences Act, stealing is defined as dishonestly appropriating something which does not belong to you. A dishonest appropriation occurs when you take or keep something without a genuine right to it, and you know and/or believe that the real owner would not agree to you having it.
In this context, if you use or refuse to return money that was mistakenly credited to your account, you are acting dishonestly because (i) you have no legal claim to the funds and (ii) you know that the true owner of the funds did not consent. This could pave the way for a case of stealing to be properly made.
What you should do if your bank account is mistakenly credited
Once you discover that your bank account has been credited with money which you are not expecting, it is important to:
- avoid spending the money or attempting to transfer it elsewhere for safekeeping as this could expose you to liability; and
- contact your bank as soon as possible and seek clarification regarding its source.
Conclusion
Just as the Good Book itself cautions against unjust enrichment, remember that not every unexpected credit transfer is a sign of divine favour – especially when it arises from someone’s mistake. The mere fact that you may have spent the money is not sufficient to prevent the bank being entitled to recover the money and potentially expose you to liability. Acting in good faith and refraining from using the funds are the best ways to protect yourself in such situations.
[1] Woman remanded for allegedly stealing GH¢800k mistakenly transferred to her account - MyJoyOnline
[2] Commissioner, Customs Excise and Preventive Service and Another v Mahogany Furniture Ltd and Another [2001-2002] 2 GLR 476
[3] [1977] 1 ALL ER 733
Recommended Content
Bank of Ghana Guidelines on Anti-Money Laundering for Foreign Exchange Bureaux
May 2, 2025
Bank of Ghana issues the Directive on Financial Inclusion for Persons with Disabilities Directive
April 8, 2025
Ghana Launches Phase 1 of the Ghana Green Finance Taxonomy
October 16, 2024
