Botched loan transfer to CC.  Owe ££x2 now

First off sorry if this is in the wrong forum.

Ok thinking to save some money on a Abbey car Loan (£8k) and pay it off early I got a 0% Virgin Credit card hoping to transfer the loan over. It appears the transfer has been botched and I now owe both companies £8k and both claim it isn’t their fault

• Transferred my £8k loan from Abbey to CC when setting up card (i.e. when sending back forms)
• Got CC at the start of November
• On V CC December statement, £8k paid to Abbey around the 10th November
• Seen on 12th Dec that Abbey had still taken loan payment on 1st Dec
• Phoned up Abbey who said my Loan still stood at £8k and that they do not accept CC transfers on loans so transfer couldn’t have happened
• Phoned Virgin who said transfer had happened on 10th – the amount, acc id and sort code they quoted me for the transfer where correct. The operator was confused and told me all she could do was trace the funds.
• Phoned up Abbey who again said that the loan had not been transferred and that no transfer request had arrived.

I know one of the companies owe me £8000 but which one?
Which one do I need to chase up?
What can I do to get some action on this?

Any help would be greatly appreciated, with Christmas and all the stress of work at the minute this is the last thing I need. Any help on this would be greatly appreciated.

Thanks
Stephen

Comments

  • If it has been debited to your credit card then start with them.
    Ask for a copy of the transfer authority to confirm who made the error in the first place.
    Your credit card provider should conduct a search for the corresponding credit and once it has been sorted out you will know who to chase up for compo.
    Eric
  • MarkyMarkD
    MarkyMarkD Posts: 9,912
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    I think that the terminology you are using might be adding to the confusion.

    As far as Abbey are concerned, it's not a transfer. It's a lump sum repayment. It shouldn't matter to them if you pay it or someone else does - it's just a BACS payment between 2 banks.

    You have correctly asked MBNA (Virgin) to confirm the account details - and they have. And they are correctly tracing the funds.

    MBNA will find where the money has gone, and then the problem will be resolved. So don't worry about it over Christmas.

    Most likely MBNA have actually paid it to the wrong account at Abbey, and it's floating around in an Abbey suspense account waiting to be matched with your account.

    Once the funds are located, you need to establish a bit more clearly who lost them and whose fault it was - as I expect you'll want the funds to be treated as if the transfer happened when it should have.
  • Thanks for the replies guys I feel a bit better now :)

    Stephen
  • deemy2004
    deemy2004 Posts: 6,201 Forumite
    What will probably happen is that the account number of the transfer from virgin to the abbey account was somehow wrong and they will probably send the money back to Virgin.
  • Most likely MBNA have actually paid it to the wrong account at Abbey, and it's floating around in an Abbey suspense account waiting to be matched with your account.

    Precisely. I am sure it is sitting at Abbey in their Clearing Suspense account...

    ..or in some other bank's Clearing suspense account if the sort code has been botched up instead of the account number as Deemy suggests...
    It's always the grass that suffers, irrespective of whether the elephants are fighting or making love !!!
  • Make sure that if you have incurred any charges that you get them back from whoever made the mistake!
  • johnllew
    johnllew Posts: 1,928 Forumite
    Precisely. I am sure it is sitting at Abbey in their Clearing Suspense account...

    ..or in some other bank's Clearing suspense account if the sort code has been botched up instead of the account number as Deemy suggests...
    Surely MBNA will have checked that the sort code given tied up with an Abbey one. I agree it's probably in an Abbey suspense a/c and that all that needs to be done is to trace it and then reallocate to your loan a/c. I don't see the need for it to go back to MBNA. You should also insist they credit your a/c with the amount on the date they received the payment, not when they eventually sort it out.
  • Walletwatch
    Walletwatch Posts: 1,055 Forumite
    Surely MBNA will have checked that the sort code given tied up with an Abbey one. I agree it's probably in an Abbey suspense a/c and that all that needs to be done is to trace it and then reallocate to your loan a/c. I don't see the need for it to go back to MBNA. You should also insist they credit your a/c with the amount on the date they received the payment, not when they eventually sort it out.

    True. A transfer having been effected should be treated no differently from cashing a cheque, and the transfer should be value-dated the day funds were received by Abbey.
    It's always the grass that suffers, irrespective of whether the elephants are fighting or making love !!!
  • MarkyMarkD
    MarkyMarkD Posts: 9,912
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    I wouldn't be so sure that MBNA would check the sort code was a valid Abbey one.

    Egg (for one) do not even ask for the name of the other bank when you request a SBT to a loan or current account. So there's nothing for them to check. They rely 100% on the customer giving them correct details - and why not?

    Anyway, all this guesswork gets us nowhere - MBNA are already tracing the payment and once they've done so, OP can ensure that it gets allocated to the loan.
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