An erroneous credit is money posted to your deposit or e-wallet account that should not be there—a duplicate posting, wrong amount, misrouted remittance, phantom “test” credit, or a system error. This guide explains your rights and remedies as a consumer, your legal duties when you receive funds not yours, how banks may reverse or hold entries, and the civil, criminal, and regulatory angles that come into play in the Philippines.

I. Why this matters

Spending money that isn’t yours can expose you to civil liability (return with interest, damages) and, in some situations, criminal exposure if you knowingly keep or convert it after demand.
On the other hand, abrupt reversals by a bank can cause penalties, returned checks, negative balances, and reputational harm—for which you have remedies.

II. Legal foundations

Financial Consumer Protection Act (R.A. 11765)
- Gives you the right to complain and obtain redress for erroneous postings; obliges banks/payment service providers (PSPs) to have a Consumer Assistance Mechanism (CAM), investigate, and explain outcomes.
- The institution bears the burden to show you acted with fraud, gross negligence, or bad faith when denying relief.
Civil Code—Quasi-Contracts & Unjust Enrichment
- Solutio indebiti (Arts. 2154–2163): If you receive something by mistake, you must return it.
- Article 22: No one should unjustly enrich themselves at another’s expense.
- Damages (Arts. 2200 et seq.): If a bank’s wrongful reversal causes loss (fees, returns), you may claim actual/temperate, moral, and exemplary damages where warranted.
Obligations & Interest
- Money awards generally earn 6% legal interest per annum from finality of judgment; if the amount is liquidated and demand has been made, courts may award interest from demand.
Criminal Law touchpoints
- Estafa (Art. 315[1][b] RPC): Appropriating money received by mistake can become criminal after demand if you knowingly misappropriate or refuse to return.
- Access Devices & Cybercrime laws: If the “credit” traces to a hacked/compromised instrument, other offenses may be involved (for the perpetrator).
Data Privacy Act (R.A. 10173)
- If a mispost reveals your or another person’s financial data, you may assert data subject rights (access/correction/security), and the bank must handle logs and disclosures minimally and securely.
Prescription
- Civil actions on quasi-contracts generally prescribe in six (6) years; actions on written contracts (e.g., deposit agreements) in ten (10) years.

III. Typical scenarios and who owes what

You receive money you do not expect (unknown sender / duplicate / wrong amount).
- Duty: Notify the bank promptly and do not spend the windfall.
- Liability: You must return; good faith does not let you keep it.
- If already spent in good faith: You still owe return to the extent of enrichment; once the bank demands, continued refusal can escalate.
The bank reverses a prior credit without warning, causing penalties or an overdraft.
- Banks reserve a contractual right to correct errors, but they should act fairly, avoid avoidable harm, and notify you.
- Remedy: Seek fee waivers, reimbursement of consequential charges (e.g., returned check fees), and a written explanation with logs.
A remittance meant for you is posted to another customer (or vice versa).
- The originator (sender) and PSPs coordinate recalls. You are entitled to a timely correction; the unintended recipient must return.
“Phantom credit” scam (a small credit used to socially engineer you to send a larger amount).
- Treat unsolicited credits with suspicion; never send out funds merely to “balance” someone else’s mistake—route all action through your bank.

IV. What to do immediately (consumer checklist)

Within 24 hours of discovery:

Secure and document
- Screenshot ledger entries, timestamps, reference numbers, notifications; download the latest statement.
- Note any incoming messages/calls about the credit.
Notify your bank/PSP
- Use hotline/in-app/email; get a case/reference number.
- State whether you authorize a reversal (if clearly erroneous) or dispute (if the bank’s reversal harmed you).
Freeze exposure
- Do not move or spend the disputed amount. If funds are co-mingled, maintain a balance at least equal to the erroneous credit.
Ask for specifics
- Request the source rail (intrabank, InstaPay/PESONet, card scheme, cross-border), error type (duplicate, wrong amount, misroute), and intended beneficiary without violating privacy (banks can describe without doxxing).

V. Your remedies against harmful corrections

If the bank’s fix hurts you (fees, returned checks, negative balance, reputational injury):

Written complaint under R.A. 11765
- Demand: (a) root-cause analysis; (b) fee reversal/interest credit; (c) compensation for documented consequential loss; and (d) process improvements (alerts/holds before debit).
Provisional relief
- Ask for temporary credit while the investigation is pending if the bank cannot yet prove the error or your liability.
Escalation path
- If unsatisfied with the final response, escalate to the bank’s higher CAM tier and, as needed, to the sector regulator. (Keep all case numbers and timelines.)
Civil action (last resort)
- For persistent refusal to correct/compensate: claim damages and interest for breach of the deposit contract and/or quasi-delict (negligence).

VI. Your duties when the money isn’t yours

Tell the bank and cooperate in documentation or credit-back.
Keep the funds intact; if frozen, do not attempt to bypass the hold.
Return any fruits (e.g., interest credited because of the mistaken principal).
Do not negotiate directly with a purported sender outside bank channels (avoid scams, privacy breaches).
After demand, failure to return may justify civil recovery and could support estafa if misappropriation is shown.

VII. How banks usually handle erroneous credits

Immediate hold on the disputed amount to prevent dissipation.
Reversal (“debit back”) once internal controls confirm the error; many deposit agreements reserve this right.
Notification via SMS/email/app and explanation on request.
Downstream corrections (fee waivers, returned check fee reimbursements) if their process caused your loss.
AML controls: large or unusual credits trigger reviews; banks will not share STR details with you but may seek your help to substantiate legitimate origin.

VIII. Special situations

Payroll or government benefit misposts
- Coordinate through your employer/agency and the bank; return paths are streamlined but still require your ledger proof and consent if already withdrawn.
Cross-border remittances
- Recall windows vary by corridor. If you are the unintended recipient, your obligation to return remains; if you are the intended recipient but the bank reverses in error, demand re-credit plus compensation for knock-on costs.
Joint accounts
- Any co-holder might withdraw; all co-holders should receive notice. Good faith withdrawal does not extinguish the duty to return an undue credit.
E-wallets and neobanks
- Same principles apply. Wallet providers maintain CAMs and must implement timely corrections and transparent logs.

IX. Evidence you should keep

Statements and transaction history (PDF/CSV).
Screenshots of app alerts/SMS and balances before/after reversal.
Correspondence with the bank (case numbers, timestamps).
Downstream loss proofs: returned check notices, penalty/interest debits by other institutions, merchant chargeback letters.
If you returned funds, formal receipt or credit-advice.

X. Templates you can adapt

A. Affidavit of Erroneous Credit (Receiver)

I, [Name], of legal age, [status], residing at [Address], state:

On [date/time], my account [Bank, last 4 digits] was credited with ₱[amount] bearing reference [ref].

I have no legal right to said funds and did not solicit or authorize the transaction.

I notified [Bank] under Case No. [number] and undertake to preserve/return the funds as directed. I execute this to document the error and facilitate reversal. [Signature/Notarial block]

B. Demand for Redress (Bank Reversed Wrongly and Caused Loss)

Subject: Erroneous Reversal & Consequential Loss – Request for Redress Dear [Bank CAM], On [date], ₱[amount] was debited as “error correction,” causing [returned check/penalties]. Please provide (1) the investigation report and control logs, (2) immediate re-credit or provisional credit, (3) waiver/refund of fees and reimbursement of consequential charges, and (4) confirmation of preventive measures. Case No.: [number]. Attachments: [list]. Sincerely, [Name]

XI. Do’s and Don’ts (quick rules)

Do:

Report immediately; keep the money untouched; ask for logs; get everything in writing.
Seek provisional credit if the bank’s action left you short but the facts are unsettled.
Ask for fee reversals and interest compensation for bank-caused harm.

Don’t:

Don’t spend or transfer the windfall.
Don’t negotiate off-platform with a “sender.”
Don’t ignore a formal demand to return; that’s where criminal exposure can begin.

XII. FAQs

Is an erroneous credit taxable income? No. It’s not your income; it must be returned. If you earned interest because of it, expect the bank to net that out upon reversal.

Can my bank debit back without my consent? Most deposit agreements allow error corrections. Banks should still notify you and mitigate collateral harm (fees/overdrafts). If they won’t, you can seek redress.

What if I genuinely thought it was mine? Good faith spares you from bad-faith damages, but you still must return. After demand, continued refusal can trigger civil and possibly criminal consequences.

How long can a sender/bank chase the error? Civil actions on quasi-contracts: six years; contract claims: ten years—but banks usually act immediately.

Bottom line

With erroneous credits, the rule of thumb is return what isn’t yours and document everything. Banks may correct mistakes, but they must do so fairly and make you whole for avoidable harm their process causes. Move fast, keep the funds intact, insist on clear written findings, and use the statutory consumer-protection pathway if your bank falls short.