That’s actually a good question.
I vaguely remembered something but I couldn’t find anything
I’ve posted it before but I can’t find it again right now because I can’t remember what it was called. 
Some kind of principle?
2 Likes
I’d say first in first out, but that’s really baseless speculation on my part.
You gave me the extra search terms I needed to find out, and you’re absolutely right.
Banks follow the Clayton’s Rule in returning money:
This says that each withdrawal is presumed to be a return of all or part of the oldest deposit. The result is that the oldest deposit is withdrawn first, or the oldest debt is paid first.
If one were to search the ombudsman decisions using “Clayton’s” as the search term, there are plenty of examples of the rule being applied.
5 Likes
As if by magic, the top ombudsman decision for Monzo, references just this rule.
As the investigator has already explained to Mr W, Monzo were following the Claytons Rule commonly known as the first in first out rule when it removed the money and sent it back to source. This says that each withdrawal is presumed to be a return of all or part of the oldest deposit. The result is that the oldest deposit is withdrawn first, or the oldest debt is paid first.
5 Likes