A pensioner who typed in one digit of a sort code wrong almost lost his £193,000 ($253,000) inheritance when the wrong recipient refused to return it, and Barclays said it couldn't help him.
Peter Teich had asked his solicitor to send the money after giving his bank details and name. He didn't have any idea that there had been a mistake until his sister received her portion of the money that had been passed down to them, but he hadn't had his.
After he queried it with his bank and solicitor, he was firstly advised that it would be refunded within a week.
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However, when the time had passed, he was given the shocking news that because the person who had wrongfully received the money refused to give it back - and it was not the bank's fault - all it could offer was a £25 ($33) gesture of goodwill.
A letter sent to Mr Teich by the bank read: "Due to an error on your part, the funds were applied to another customer... clearly you were mis-advised about the funds being restored to your account, and in recognition of this, I have credited your account with a small token gesture of £25."
Speaking to The Guardian, Mr Teich said: "Barclays insisted that I bear the full and sole responsibility of pursuing their own dishonest customer."
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After hiring lawyers he went through an expensive legal protest that meant he had to pay £12,000 ($16,000) in legal fees. He eventually got the other customer's name and went on to get a 'freezing injunction', which cost £34,000 ($45,000).
The court order then forced the other customer to repay the money.
Mr Teich said: "I freely acknowledge my mistake in this unhappy saga: I provided the sort code of the wrong Barclays branch. But my error fades into near insignificance when considered in the context of Barclays' conduct."
Still not satisfied, Teich then asked for Barclays to refund his extortionate legal fees, to which it refused.
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He got in touch with The Guardian, who asked the bank to reconsider the case. In what they say is an 'almost immediate U-turn', the bank refunded the fees and gave him £750 ($985) in compensation.
A spokesperson from Barclays said: "It is evident that on this occasion we have failed to meet the high standards that Mr Teich can expect to receive from Barclays, and for this we have offered our sincere apologies.
"After taking a closer look at this situation, we can confirm that Mr Teich can expect the fees he has incurred to be refunded in full with interest, together with a payment for the distress and inconvenience this matter has caused."
As of March next year, name checks will be carried out when customers enter account details in order to perform a bank transfer.
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