rent lost in tranfser, what next?

97trophy

What do you folks think of this.

Tenant claims he paid rent to letting agent by BACS (or faster payment). Has Internet statement to prove it - looks genuine.

Letting agent claims not to have received money. Has supplied photocopies of their actual hard copy bank statements and rent it not there (also look like the real thing)

My initial thoughts are, it is the responsibility of the tenant to chase his bank on where the money went (is).

Does this count as non-payment of rent?

Opinions / advise please.

Mrs_Arcanum

Could the letting agent have miss allocated the funds? If the reference number is not included/or is incorrect for the transaction it is very easy to put the amount against the wrong account or leave it in abeyance. BG do this frequently with payments our company makes.

We have a managing agency who cannot allocate funds properly even with the invoice number.

Would say it is down to the tenant to chase the LA to find out if they have such a sum. Then they should ask their bank to check where the BACS went!

jjlandlord

If tenant correctly entered the sort code/account number when issuing the transfer, it seems extremely unlikely that it could be "lost".

If the agent has genuinely not received the funds, then the rent is unpaid.

97trophy

Mrs_Arcanum wrote: »

Could the letting agent have miss allocated the funds......Would say it is down to the tenant to chase the LA to find out if they have such a sum. Then they should ask their bank to check where the BACS went!

No reason to think it's an allocation problem.

The letting agent has sent me copies of their bank statements for the whole month in question. There is no credit for the amount of rent in question..I also have the previous months statement that show the credit from the tenant.

Thanks.

Tenant refuses to do anything. Will have to keep chasing them.

97trophy

jjlandlord wrote: »

If the agent has genuinely not received the funds, then the rent is unpaid.

Thanks. That's what we think too.

Lokolo

The tennant could have just setup a new payee (to another account in his name), send it there with the same reference, and on the bank statement it will look exactly the same.

If he did send it to the wrong account accidentally he should contact the bank.

G_M

As with any money that gets lost in a bank transfer, the sender will need to investigate via their bank.

In the meantime, the rent is unpaid, but obviously the LL will want to give the tenant every opportunity to trace the money.

theartfullodger

Politely ask (preferably my email?) all parties to work together to find where the money is (T, Agent, T's bank, Agent's Bank..).

Why?? Well, suppose T has been paying this way successfully for months & this payment goes walkabout. Nobody does anything & it stays lost.. Next month's payment made same way & money comes through etc etc..

So, what do you do now?? Sue T for payment?? If it ever got to court he has a cast-iron defence by showing evidence of payment..

I think you need to be conciliatory & ask for cooperation and help, not go around, say, apportioning blame..

(Unless this is 1st time T paid this way...).

Cheers!

Artful

jamie11

I also think the tenant is the only person that can initiate an investigation into the matter, the banks will probably politely ignore any request from a third party.

In which case a formal demand for payment might be in order, just to concentrate his mind.