Unfortunately as IRMN mentioned, the nephew probably owes Aunt Betty money so he put her name on direct deposit.  Or he did not have an account so he let Aunt Betty get money in mean time.  So are you saying Aunt Betty should not get the money that her nephew intended her to get.  Credit Union is simply doing as taxpayer (nephew) directed when he (or preparer) mistakenly listed wrong account number.  Bank is not guilty party!!