Investigating transactions... frozen account .... financial loss

AAAA24

HI,
Any help here would be very much appreciated. I received funds from overseas (Germany) to my UK which cleared to my account. So 3 days later I bought a flight ticket using the funds and when i got to the airport tried to exchange currency using my card (knowing that I had sufficient funds in my account) but the transaction was declined i couldnt withdraw any cash either due to this I had to cancel my flight (non refundable, non changeable ticket). Visited the bank the same day and an employee sat there and said after some phone calls that he cant help me and that I should call back on Monday (it was Saturday). On Monday I went to the bank and immediately asked to speak to the branch manager who wasnt there but a sales manager was available. After explaining the whole situation the manager made enquiries and after sitting there for more than 1 and a half hours the manager couldnt find out was wrong with my account. So they took my mobile number and promised to give me a call. I received a call from the manager later that day telling me that the transaction from germany is under investigation although it had cleared 3 days earlier into my account and that i have already used some of it. And when I complained that I cannot withdraw any money I was told I had no access until the investigation is over, leaving me with no money at all. (I had to borrow money to pay the taxi back from the airport). Today in a desperation move I tried to withdraw money and I was successful. It seems obvious to me that there was some mistake in the banks part that led to all this mess and my losses (a 500 pounds flight ticket). Surely I have enough grounds for compensation. P.S. Since the conversation with the manager until now havent heard from the bank.

jonesMUFCforever

Write a formal complaint - send in copies proving how much the air ticket cost you and see how you get on.
If they do not respond to your satisfaction within 8 weeks you can take the dispute to the ombudsman.

Loughton_Monkey

Just don't expect compensation for you flight costs etc. They cannot be held responsible for this any more than if you had said "I tried to transfer £300 to a share trading account. It was refused. Had it not been refused, I would have made 300% profit because they struck oil....."

AAAA24

I am going to make a formal complaint.. but after doing some research found out that the bank withhold funds if it associated with fraudulent activity. (No fraud involved here as the funds were released) and that the bank is not liable for any financial losses incurred due to their investigation. My question would be why have the funds cleared in my account making it accessible if it is to be invesigated and why only 30 min before my flight 6:05 Saturday morning bearing in mind that I withdrew 10 pounds from a cash machine en route to the airport for the taxi fare. I have also received a letter from the bank informing me that the I have received the funds.

AAAA24

Why shouldnt i expect compensation if I had no fault in the whole situation ? Had I had access to the money I wouldve been half way around the world by now. but due to the banks withholding of the funds I could not travel.

AAAA24

opinions4u wrote: »

Money appears from a foreign destination. Then there's a modest test transaction.

Within hours a large sum is being withdrawn in a foreign currency transaction.

Whether it's fraudulent or not, you've mirrored a very common form of fraud/money laundering and the bank has quite understandably stepped in to investigate.

You may, at best, get a modest goodwill payment.

Not within hours after 3 full days, and after using more than half the transaction funds already. (bought the ticket using the funds from the same account 10 hours before the flight). Please note also that I have received funds from the same sender 2 time prior to the last one for larger sums and didnt encounter any problems with them whatsoever.

Azrael_1701

If the money from Germany was suspicious, then the transaction could have been reported to SOCA, who have the power to tell the bank to freeze the account until they have had a look.

zppp

Azrael_1701 wrote: »

If the money from Germany was suspicious, then the transaction could have been reported to SOCA, who have the power to tell the bank to freeze the account until they have had a look.

Absolutely.

Not only that, but under the Proceeds of Crime Act 2002, it makes it illegal for the financial organisation to tip you off that you have been reported to SOCA.

You will also find that in general, banks do incorporate this kind of situation in their terms and conditions, stating that they do reserve the right to freeze your account under fraud suspicions or fraud detection.

AAAA24

Azrael_1701 wrote: »

If the money from Germany was suspicious, then the transaction could have been reported to SOCA, who have the power to tell the bank to freeze the account until they have had a look.

Is this governed by any rule, law .... is it governed at all ? like I stated earlier I received money twice from the same sender for larger amounts but never had any problems. Why now? and in my case when was it triggered ? Why did the bank credit my account with the funds and sent me a letter stating that the money is available for me? Doesnt make any sense at all. The fact that at 4:30 Saturday morning I withdrew money from an ATM and 15 min later couldnt use the my card for exchanging currency leads me to believe that the bank made a mistake. Dont u agree?

AAAA24

zppp wrote: »

Absolutely.

Not only that, but under the Proceeds of Crime Act 2002, it makes it illegal for the financial organisation to tip you off that you have been reported to SOCA.

You will also find that in general, banks do incorporate this kind of situation in their terms and conditions, stating that they do reserve the right to freeze your account under fraud suspicions or fraud detection.

Yes It is in the banks T's and C's that they reserve that right. but why did the credit my account with the money, let me use half of it before freezing the rest ?

Azrael_1701

AAAA24 wrote: »

Yes It is in the banks T's and C's that they reserve that right. but why did the credit my account with the money, let me use half of it before freezing the rest ?

The bank may need to get permission from SOCA to freeze the accounts funds completelly.... that cant happen straight away