Funds Transfer gone awry!

oldagetraveller

Yesterday I set up a transfer of £3k from my Smile current a/c to my Lloyds current account. I received a code at Smile advising that the transfer method could not be determined. It left the account immediately.
Checking Lloyds this morning the funds did deposit there by FP yesterday but were immediately debited as a COR (correction) and would look to have been returned to Smile. Probably by BACS, as not in the Smile account yet.
Smile's FP limit is £5k and there were more than sufficient funds to cover the transfer even allowing for any debits in the pipeline.
Lloyds say there were no problems with the FP system yesterday and that they have no control over the transfer, it must be Smile who have reversed the funds.
Smile say they have no control once it's left my account and they have done as requested, it must be Lloyds where the problem lies. They say it went via BACS when it obviously didn't.
What might have happened, which bank or which system is at fault or not telling the truth? If I make a complaint, to which bank should it be directed? I've effectively "lost" £3k until it credits my Smile a/c. Both say it will appear there in two or three days.
Any idea what might have actually gone wrong?
Edit to add - now the code has changed in my transfer list at Smile. It now shows a code advising that the funds could not be sent by FP - well it was! Shows at Lloyds as FPI on the same day.
This has happened a few times with Smile, i.e. cannot be sent via FP and the money has gone immediately BUT on those occasions via BACS.

stclair

In situations such as this the onus is always on the sending bank to resolve the issue. Therefiore you may want to raise a concern with smile? I would leave it until thursday to see if it credits your lloyds account again inbetween.

strawberrylane

My best guess as to what has happened, based on the information provided, is that Smile initially attempted to send the funds by FPS, the funds were actually accepted by Lloyds, for some reason Smile did not receive immediate confirmation of success and so aborted the FP and reverted to BACS. If that is true, your funds should show up at Lloyds later this week. I'd wait until Thursday to see if the funds show up at Lloyds. If they don't you'd have to raise it with Smile and ask them to trace the BACS transfer.

oldagetraveller

Thanks both. So which bank would be the more "guilty" party?
I think I'll raise a complaint with both which might shed more light on what went wrong - or still is wrong if my money doesn't revert to either account. It's a little worrying when £3k disappears from one account, appears in another (as requested) then disappears again (not requested)!
Both CS reps. had to go and consult with someone before giving me the "it wasn't our fault gov" brush off. That must be the standard text book reply when neither know the answer?

LittleVoice

Interesting to find someone else where an FP was received by Lloyds on Monday but then debited and marked as COR. I too had that with a payment from A&L (Santander). A&L received the funds back the same day and marked it as a rejected payment. The money would originally have left A&L sometime between 7 am and 9 am.

I then re-sent another amount today from A&L to LTSB. It arrived "immediately" and was still in the LTSB account half an hour later. I'll go and check again now.

Added: Yes funds still in LTSB account this evening. Looks like a problem with their system yesterday.

strawberrylane

@OP - did the funds arrive at Lloyds today?

strawberrylane

Would you care to update us on what happened?