Last year I intended to transfer £760 from the Halifax to my Nationwide account. Unfortunately, I mistyped a digit of the account number and the money went to a stranger. I did not notice this until three weeks later, at which point I called Halifax. They explained that their policy was to email the bank into which the money went and ask them to retrieve it.

Months passed without result. I then contacted Nationwide. They confirmed the money was no longer in the recipient’s account so they could not retrieve it, and they were unable to provide me with their details due to data protection. They wrote to the account holder but received no response.

I was advised that I would need to take Nationwide to court to obtain the details of this person and begin legal action. It cost me £70 to do this, then I began a claim, paying a further £60, but there was no response from the recipient. The next step is to issue a warrant, but this will cost me another £70! Will this get me my money back or is it time to give up?

I completely understand it was my initial mistake. However, the fact remains that somebody has taken and spent £760 which is not theirs – and why, over a year later, am I still no closer to getting it back? GM, London

The obvious advice is to check and recheck you’ve typed the account number correctly when transferring money because, as you have discovered, banks only note the sort code and account number, and there is no guaranteed protection if you misdirect a payment. However, the number of transactions on the fiddly keypads of smartphones and tablets means mispayments are on the rise and last year a number of banks signed up to a voluntary code to make it easier to reclaim errant funds.

Under the code, the bank will act within two working days of being alerted and, if they can’t immediately retrieve the money, they will investigate further and inform the sender of the outcome within 20 days.

Your problem was compounded by the fact that three weeks had passed before you realised the mistake, by which time there was no money left to be returned. “If we have been notified sooner, and were satisfied the money was hers, we would have withdrawn it immediately and returned it, or ringfenced it if there was a dispute on ownership,” says a spokesperson for Nationwide.

It will not force the recipient to become overdrawn because it says it will not take on a debt that stems from someone else’s mistake.

Payments UK, which represents payment services, says it is working with banks and financial providers on the issue but that there is no “silver bullet” that can eradicate the problem.

Some banks and building societies, such as First Direct, have amended their terms and conditions to allow them to claw back mispayments or ringfence them if they are contested, but this is on a case-by-case basis to prevent, for instance, a buyer changing their mind after a purchase and reclaiming their payment.

Spending someone else’s money is a criminal act, but the reality is the police are unlikely to spend much time pursuing the “thief” on your behalf.

Your only option then, is to obtain a court order allowing a bailiff or high court enforcement officer to recover the debt, but if the defendant refuses to admit the bailiff or lacks the goods or funds to pay, you’ll be left out of pocket.

The small claims system relies heavily on defendants playing ball. If they don’t, enforcing a judgment can be pricey and ineffectual. You’ve already lost £760 and two court fees. You might be best dismissing the experience as a hard lesson learned.

If you need help email Anna Tims at your.problems@observer.co.uk or write to Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU. Include an address and phone number.