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NatWest honoured a cancelled standing order

My bank, NatWest, have honoured a standing order which I cancelled online before the required three day notice period. After many telephone calls, they have finally agreed that I cancelled it with sufficient time and they should not have honoured the standing order.

The standing order has paid money into another account of mine at HSBC. Due to the rules of the HSBC account, I cannot withdraw any funds without incurring a penalty.

NatWest originally told me that, even though it was their mistake initially, they cannot take any action because they are unable to retrieve the money from HSBC. After much argument, they expressly told me that as a 'gesture of goodwill' they would refund the money back to me.

A week has passed and the money hasn't been refunded. I telephoned them again today and have now been told that they have decided not to refund the money on this occasion but could not provide a reason for this change of heart! They have not only inadvertently sent a large sum of money into a black hole, but they are backtracking on their promise to refund this money :(

What can I do in this situation, please?

Peter.
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Comments

  • pmduk
    pmduk Posts: 10,707 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Make a formal complaint. It's their mistake, why should you suffer? If they've not dealt with the matter in your favour within 8 weeks take it to the Financial Ombudsman.
  • pg2114
    pg2114 Posts: 92 Forumite
    pmduk wrote: »
    Make a formal complaint. It's their mistake, why should you suffer? If they've not dealt with the matter in your favour within 8 weeks take it to the Financial Ombudsman.
    Sorry, I should have mentioned that the person who I have been dealing with is one of the top men at the RBS group.

    I guess if he is unwilling to refund the money or offer a meaningful explanation, I should make a complaint to the Financial Ombudsman. If I were to take it this far, what would be my chances of winning?

    Thank you very much,

    Peter.
  • stclair
    stclair Posts: 6,856 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    What time and date did you cancel the S/O?

    When was the next payment due to leave the account?
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
  • pg2114
    pg2114 Posts: 92 Forumite
    stclair wrote: »
    What time and date did you cancel the S/O?

    When was the next payment due to leave the account?
    I cancelled before the end of banking hours on the 16th August for a payment due on the 20th August. They've confirmed that was sufficient time.

    Peter.
  • stclair
    stclair Posts: 6,856 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    pg2114 wrote: »
    I cancelled before the end of banking hours on the 16th August for a payment due on the 20th August. They've confirmed that was sufficient time.

    Peter.

    Can you elaborate on the date and time of cancellation please.
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
  • stclair
    stclair Posts: 6,856 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    pg2114 wrote: »
    I cancelled before the end of banking hours on the 16th August for a payment due on the 20th August. They've confirmed that was sufficient time.

    Peter.

    What time do you deem as being end of banking hours?
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
  • pg2114
    pg2114 Posts: 92 Forumite
    stclair wrote: »
    What time do you deem as being end of banking hours?
    It was something like 2:00pm I think. Either way, the online system confirmed that the standing order had been cancelled and no payments, including that of the 20th August, would be taken.

    Peter.
  • stclair
    stclair Posts: 6,856 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    pg2114 wrote: »
    It was something like 2:00pm I think. Either way, the online system confirmed that the standing order had been cancelled and no payments, including that of the 20th August, would be taken.

    Peter.

    You was in time then lol

    The banks system thinks it the next day after 18.30 I was just checking :D

    You still would have made it though.
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If you haven't already done it, contact HSBC and ask them to assist NatWest in correcting this error by returning the funds to the NatWest account it came from without penalty.

    If HSBC decline, NatWest should be paying you redress of the amount it takes to put you into the position you would have been in if the transfer hadn't happened. That would include the whole of any penalty levied by HSBC. But it's still much better to see if HSBC will help to solve the problem easily.

    I'm assuming that the penalty isn't grossly disproportionate to the amount of money involved. Say losing all interest on a hundred thousand pounds for a year when the payment into the HSBC account was a thousand Pounds and you don't have any urgent need for the thousand Pounds. In such circumstances, NatWest making an interest free loan to you for the time the money is locked up at HSBC might be the most proportionate and appropriate resolution, that minimises the costs to you and NatWest while leaving you with access to the money until you can get it from HSBC and repay the loan.
  • stclair
    stclair Posts: 6,856 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    How much money we talking here?
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
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