header-logo header-logo

30 September 2020 / Chris Bushell , Ceri Morgan
Issue: 7904 / Categories: Features , Profession , Commercial
printer mail-detail

Customer payments: Held to account

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

Katten Muchin Rosenman—Charlotte Hill

Katten Muchin Rosenman—Charlotte Hill

Katten strengthens financial markets and funds group in London

Hugh James—Keith Cundall & Lee Hart

Hugh James—Keith Cundall & Lee Hart

Hugh James expands national Serious Injury team with two new Partners

HFW—Rémi Ducloyer

HFW—Rémi Ducloyer

HFW continues Paris office growth with public law Partner hire

NEWS
The Court of Appeal's decision in Mazur v Charles Russell Speechlys LLP has lifted months of uncertainty for Chartered Legal Executives while prompting a rethink of regulation and supervision
The assisted dying debate returns to Westminster as Lauren Edwards MP reintroduces legislation that stalled in the House of Lords last session despite clearing the Commons
A little-noticed provision of the Crime and Policing Act 2026 has fundamentally expanded corporate criminal liability
Artificial intelligence is transforming legal practice, but careless reliance on it is creating growing professional risks
The law offers cohabiting couples surprisingly greater protection after one partner dies than when they separate during life
back-to-top-scroll