A loophole in the banking system could leave customers who make a mistake when transferring money over the internet permanently out of pocket.

According to the site MyMoneyDiva.com if you are not careful when you transfer money you could end up permanently out of pocket. The consumer site highlights the case of Clare Logie who transferred £2000 to the wrong person's account by clicking the wrong box when she did the online transaction. Alliance & Leicester, told her it has tried to contact the other customer to request they return the money but has not had a response, probably because the person in question is having a nice holiday at Logie's expense.

Logie was told that  banks can only request permission to retrieve the mistaken payment from customers' accounts.  If the person refuses to hand over the money then there is nothing anyone can do to make them part with it. Alison Steed, editor and co-founder of MyMoneyDiva.com, said: 'It is outrageous. For all intents and purposes, the person who has chosen to hang on to your money is being helped by the legal system as it stands.”

Under Blighty law it is not theft if the money has been transferred to their account in error and therefore they can hang on to the dosh if they like.  Apparently however they could get into hot water if they spend it.