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Breach of Mandate

Breach of Mandate

Claims for breach of mandate usually happen when a bank either wrongly refuses to make a payment or makes a payment without the right permission.

If they do this, it can be viewed as breaking the contract or account rules, and the bank is responsible without considering the customer's fault.

If this has happened to you, our network of solicitors can help you make a claim.

Contact our Legal Assessment Team to get started.

What is a mandate?

A mandate is a document that outlines who is authorised to access and manage your bank account, as well as the actions they can take.

Adding someone to your mandate gives them permission to make payments on your behalf, apply for new products, and discuss transactions with the bank.

What is mandate fraud?

Mandate fraud happens when someone tricks you into changing the details of a direct debit, standing order, or bank transfer by pretending to be a company you regularly pay.

What is a breach of mandate?

A breach of mandate happens when someone or a company does something they weren't supposed to according to a contract.

It is essentially a type of breach of contract.

What are the consequences of a breach of mandate?

When a bank breaches its mandate, it can have serious consequences for everyone involved, from financial losses to difficulties accessing credit in the future.

Even if a payment falls within the mandate, the bank may still be seen as negligent in its actions.

Can I claim for breach of mandate?

If your bank refuses a payment wrongly, you may be able to claim compensation to cover any losses or expected losses, because of the bank's mistake.

However, if the bank pays out money from your account it's seen as though the bank used their own money to make the payment - not yours.

Customers in this position can ask their bank to reverse the charges and claim money to cover any losses from the bank's mistake.

Even if your bank followed the mandate correctly, it may still be responsible for damages if it made the payment when it had reason to believe the instruction was fraudulent.

Common defenses for breach of mandate

When a breach of mandate happens, banks can defend themselves if:

• The customer later approves or adopts a payment that wasn't originally made correctly.

• The customer knew about the payments but didn't tell the bank.

• The customer benefited from the payment by settling a debt.

• The bank refuses a payment due to concerns about money laundering.

In any breach of mandate, seeking legal advice can help you understand your rights and options for recourse.

Breach of Mandate in trusts

If a bank pays funds that were supposed to be held in trust for someone else, they could be responsible for assisting in a breach if they acted dishonestly.

Another type of liability arises when a bank deals with trust property inconsistently.

In both cases, dishonestly is judged based on what the bank knew at the time and, if their actions did not meet ordinary standards of honesty, it's considered dishonest.

What should I do if I suspect a breach of mandate?

If you think there's been a breach of mandate, your first step is to report it to your bank. Usually, they can sort things out quickly.

But if they can't or won't take responsibility, you might need legal assistance.

A breach of mandate lawyer can help you understand your options and guide you through the process of making a claim against your bank.

Is there a statute of limitations for bringing a claim for breach of mandate?

Yes, there's usually a time limit for bringing a claim for breach of mandate. According to the Limitations Act 1980, there are specific timeframes for different types of claims.

If it's a breach of contract claim, you generally have six years from when the issue arose. For more serious contracts, like formal deeds, you have twelve years. Tort claims, which can include breach of mandate, also typically have a six-year time limit.

There are exceptions, though. For instance, the Latent Damage Act 1986 gives you an extra six years for negligence claims involving hidden defects.

It's a good idea to address a breach of mandate as soon as possible, but even if it's been a while since you discovered it, there may still be options.

A solicitor can assess your situation and determine if it falls within the time limits for making a claim. Contact us today for a free case evaluation to find out more.

How can Lawhive help?

At Lawhive, our breach of mandate solicitors are available to help you understand your options and take action to recover what you've lost.

The cost for a licensed solicitor to help with breach of mandate is dependent on many factors including the complexity and specific requirements of the case. On average it is expected to range from £200-£300 but in some cases, it could cost as much as £500.

Get in touch with us for a free case assessment and quote today.