Bank messed up internation funds transfer...what compensation?

ucjtckc

At my request the bank carried out a telegraphic transfer of 5500GBP to an account in Hong Kong. I said that I wanted to transfer 5500 sterling to a sterling account in HK. At one point the operator said that's roughly equivalent to 83,000 HK$ to which I commented why do I need to know that - I just want to transfer the sterling amount. She said it's just for information. I then proceeded to give her the account details and becuase it's a multi-currency account IN HK, I asked whether a special instruction could be made to ensure that it was deposited in the sterling sub account so that the receiving bank would not carry out an FX translation into HK$ and put the funds into the HK$ account. She said it was not possible but we could put as a reference 'For GBP account'. She then confirmed all the details basck to me regarding the amount that would be taken from my account and the receiving bank details.

Unfortunately I got a call today from the HK account owner and it appears that my bank have converted the GBP amount into HK and transferred that instead. If the person in HK was to convert their received sum back into GBP with their bank they have (becuase of the spread charged by their bank and the spread used by my bank in transmitting the funds) they end up being about £100 short. She doesn't want to transfer it to her GBP account just yet for fear that my bank won't make up the difference and therefore she'll have lost out on the spread again when her bank does the transfer for her.

I've called my bank to complain and they have opened up an investigation saying they will listen to the original telephone conversation. Assumming that they find that I did request a sterling transfer how can I quantify how much compensation I am due? Has this happened to any of you before? how was it resolved?

jonesMUFCforever

First of all I'm suprised that they have accepted a telephone call for an International payment - some banks will not do this.
Doing it this way is a disaster waiting to happen because you do not have a paper copy to refer back to and confirm what you signed.

Have you had confirmation paperwork for the transfer?
Look at it carefully if your bank did what you wanted then the error may be at the receiving end and if so then your customer should refer to their own bank for recompense.
If your bank has dropped a clanger then they should do an extra transfer for any shortfall and make sure that they pay both side's charges.

MPH80

From what you've said - it sounds to me like the problem is at the recieving end than the english end.

The simple fact is - you've got a special account at the other end - not something their system can deal with - so they did the best they could. I think providing the reference made it all the way through the system - the complaint lies at the other end.

M.

AndyR_3

If your bank is at fault, they the compensation paid will probably only be to cover the losses caused by exchange rates/extra bank charges. However, as has been said, if your bank followed the instructions, but the other bank got it wrong, then they won't offer you anything.

Which bank, out of interest, allows foreign TTs by phone?

topbombing

Natwest does foreign payments over the phone as long as yur a private banking cutomer.

you need to ensure that you definatly asked for £5500 sterling.

it sounds to me that the bank is not at fault as you have asked for it to go in sterling. in that case, all your bank will do is send £5500 to HK, what happens once it gets there is nothing to do with your own bank unfortunately. i think you are stuck.

also beware, an investigation usually triggers a fee (roughly £25)

hope this helps

thanks

ucjtckc

The bank in HK is definitely not at fault - they have received HK$. I have confirmed this with my bank's international bank transfer department - the instruction they received from telephone banking was to transfer HK$.

It would appear that when the lady at Halifax (my bank) gave me an indication of what the HK$ amount was - she really had done the FX translation and was going to transmit this. Despite my questioning her about his when she gave me the figure and then stating quite clearly that the amount was to go into a sterling account overseas it all still goes wrong

They haven't mentioned any costs involved with looking back at the taped conversations just yet...

jonesMUFCforever

So have you had a paper copy of the transaction?

ucjtckc

Yes, came through the post today and confirms that they transferred a HK$ amount. Spoke to Customer care this morning and they do not have a recording of the conversation so have decided to take my word for it - they working out now how much to pay back to me...

jonesMUFCforever

ucjtckc wrote:

Yes, came through the post today and confirms that they transferred a HK$ amount. Spoke to Customer care this morning and they do not have a recording of the conversation so have decided to take my word for it - they working out now how much to pay back to me...

Good for you - but If I were you I would put any further foreign transfers in writing!