§ 4-26. Wrong account number: who is responsible and what must the bank do

This section answers what happens when a payment goes to the wrong recipient because the customer has given the wrong account number or other unique identification. The main rule in the first paragraph is that the bank has done its job correctly as long as it followed the number given. The payment is then regarded as correctly carried out with respect to the account the number points to, and the bank cannot be held liable under § 4-28. This does not change if the customer has also entered other information, for example a name that does not match the number.

Even though the bank is not liable, it is not entirely off the hook. The second paragraph requires it to make reasonable efforts to get the money back. The recipient's bank must cooperate, among other things by giving the payer's bank the relevant information. The bank can also demand that a third party who has received the money without being entitled to it pays it back when the reason is that the customer gave incorrect information in the payment order.

If the amount cannot be recovered, the third paragraph gives the payer a right of access to information. Upon written request, the bank must give him all relevant information it has access to. The information is meant to help the payer pursue the matter himself.

Example: The payer types one digit wrong in the account number, and the money ends up with a recipient who should not have had it. The payer's bank has followed the order and is not liable, but it must try to get the money back. It can ask the recipient's bank for help. If the money is not returned, the payer can ask in writing for the information the bank has.

This section is an exception to § 4-28, which makes the payer's bank responsible for ensuring that a payment the payer has initiated is carried out correctly. Where there is liability under § 4-28, the amount must be returned without undue delay, and the account must be restored to the state it would have been in without the error, including interest and costs. The counterpart is § 4-25, where it is the bank that has made the error. Section 4-29 allocates liability when the recipient has initiated the payment, and § 1-9 is titled "Mandatory nature" ("Ufravikelighet").