Can I put through an indemnity claim? HELP!

Mikeyorks

EarthBoy wrote: »

I didn't think they could reject the indemnity claim -can they? It would make a mockery of the system.

Yes they can. And ..... no it doesn't. It adds balance to the system which could otherwise be manipulated by anyone who decided they were a bit cash strapped that month?

When the OPs Bank agrees to invoke the DD guarantee and refund the money - they then send an indemnity claim to the originator Bank. In order to reclaim the funds for which they are now out of pocket. The originator Bank contacts the originator, with the details. The originator has one or more indemnifiers who look at the transaction. If they decide that the transaction was perfectly legitimate and no 'error' has been made (a fundamental of the DD Guarantee?) .... they will decline to indemnify.

Their Bank then goes back to that effect to the OP Bank ... who will re-debit the account in order to recover their funds.

The protection against originators simply declining indemnities out of hand ... is that BACS patrol the system and have the ultimate deterrent of removing them from the DD system. Hence why indemnifiers are usually both knowledgeable and fairly senior people in the originating organisation.

EarthBoy

Mikeyorks wrote: »

.....indemnifiers are usually both knowledgeable and fairly senior people in the originating organisation.

They weren't senior at British Gas when I used to work there. In fact, I don't think they had any such people as indemnifiers. Banks would often ring us up to say that they had sent through an indemnity claim but hadn't had a reply. We never knew what to say to them except try and fob them off and tell them to send the claim through again. The finance dept who dealt with banking weren't familiar with the customer accounts side of things at all and wouldn't have a clue as to whether the d/d had been claimed in error or not. They certainly weren't senior people.