Citibank Sends Payment Incorrectly, But Lender Refuses To Return the Money

It’s an unwritten rule that mistaken payments are sent back, and that’s what everyone thought would happen when Citibank accidentally sent $900 million to the lenders of the Revlon makeup company. In 2016, Revlon borrowed money and agreed to make periodic interest payments on the loan until 2023. So, every few months Citibank sent a couple of million dollars from Revlon to the lenders. Thinking that’s what they were doing, Citibank missed checking two little boxes that sent the excessive payment right to the lenders. Finding out they had made a mistake, Citibank immediately contacted the lenders and asked for the overpayment to be returned. To the bank's surprise, the lenders declined. Citibank immediately filed suit, but in the end, the court ruled that the lenders could keep the money. Needless to say, Citibank appealed and the court is supposed to hear Citibank's oral arguments for the appeal sometime in the next few months.