The bank messed up, what should I do?

KX321

First of all, sorry if this doesn't belong here but I'm new.

Last week I went to my bank, Lloyds TSB to see whether they could cash in some United States Savings Bonds I was given as a gift from American relatives a few years ago. I didn't know much about the bonds but thought it was worth asking whether or not they can be cashed here in the UK.

I was happy when I was told that I could indeed cash them there, the bank simply converted the dollars into pounds using the exchange rate on the day. So off I went with my £230 and put that together with some other savings to treat myself to an Android Tablet.

Yesterday I received a call from the bank asking me to come down and speak to them about the bonds. I went down there this morning and was told that they needed the £230 back because they couldn't turn the bonds into funds (although on the day I cashed them one of the employees said I can get cash on the day because they were "guaranteed funds").

I'm a college student with no income and have spent the £230 that they are asking me to repay, I have £2 in my bank account which I'm happy about because I was told they would have automatically taken the money back if it were in my account.

I want to know what I should do. What happens if I decide not to pay them this money? Yes they have my bonds still but I've already got the money they're worth and I'm now in this horrible situation because of THEIR mistake.

Any advice or guidance on what I should do would be greatly appreciated.

Lokolo

If you had no money why did you go and spend £230 on a tablet?

KX321

Lokolo wrote: »

If you had no money why did you go and spend £230 on a tablet?

Well I HAD some money saved and put that together with the £230 to treat myself. I don't have any money now but it doesn't bother me too much because I am living at home and don't really have any expenses.

MonkeyMad

Personally I would tell them that they agreed to exchange YOUR bonds for cash. The fact they cannot now exchange THEIR bonds for cash is their problem.

At bare minimum you want to come away with an interest free loan and generous repayment plan

jamesd

If you purchased the Android tablet mail order you still have a legal right to return it for a refund.

Ask them to solve the problem. They created it by telling you that they could carry out the transaction and they are the people who should be able to find out how they can solve it for you and them. Make a complaint if required to dump the problem into their lap and get them to tell you how to help them to solve the problem.

You can usefully provide them with a copy of the US Savings Bond page from the US Embassy that will tell you and them how it's possible to proceed. The bank can presumably handle providing a notary public or solicitor to witness your form PD 1522 so it can be posted off to the Foreign and Commonwealth Office for legalization. Then on to the US with the bonds to get a cheque in return. When you have that cheque you can deposit it with them and that will take care of the matter. Note also that the FCO makes a £30 charge for their service and you may need to borrow this from the bank as part of the work of getting most of the money to them. A solicitor or notary will probably also charge for their service if the bank doesn't want to take care of that aspect.

Be sure to also complete form W-8BEN to avoid paying US tax on the interest. The correct answers to the W-8BEN questions include:

3 - individual
Country: United Kingdom (assuming you're a UK domiciled and tax resident person)
6 - if you have one
7 - your national insurance number
8 - don't answer here except if the instructions give you some reason to.
9a except in the very unlikely case that you've had past tax affairs in the US.
10 - don't answer here.
11 - don't answer here.
IV capacity in which acting, beneficial owner.

I do not warrant that these answers are correct or correct for your circumstances, it's just how I'd answer them based on my limited experience in completing this form.

If all goes well the interest will cover the FCO fee and the bank will get all of its money back. Else you and they will end up agreeing a payment plan that is affordable for you.

If you decide not to pay them they will ultimately pass the debt on to debt collectors and perhaps seek a CCJ against you. But if you act as suggested and assuming they see sense and cooperate all they will end up doing is providing you with an interest free loan for as long as it takes you to get the money from the US. Probably a few months.

KX321

jamesd wrote: »

If you purchased the Android tablet mail order you still have a legal right to return it for a refund.

Ask them to solve the problem. They created it by telling you that they could carry out the transaction and they are the people who should be able to find out how they can solve it for you and them. Make a complaint if required to dump the problem into their lap and get them to tell you how to help them to solve the problem.

You can usefully provide them with a copy of the US Savings Bond page from the US Embassy that will tell you and them how it's possible to proceed. The bank can presumably handle providing a notary public or solicitor to witness you completing form PD 1522 so it can be posted off to the Foreign and Commonwealth Office for legalization. Then on to the US with the bonds to get a cheque in return. When you have that cheque you can deposit it with them and that will take care of the matter. Note also that the FCO makes a £30 charge for their service and you may need to borrow this from the bank as part of the work of getting most of the money to them.

Be sure to also complete form W-8BEN to avoid paying US tax on the interest. The correct answers to the W-8BEN questions include:

3 - individual
Country: United Kingdom (assuming you're a UK domiciled and tax resident person)
6 - if you have one
7 - your national insurance number
8 - don't answer here except if the instructions give you some reason to.
9a except in the very unlikely case that you've had past tax affairs in the US.
10 - don't answer here.
11 - don't answer here.
IV capacity in which acting, beneficial owner.

I do not warrant that these answers are correct or correct for your circumstances, it's just how I'd answer them based on my limited experience in completing this form.

If all goes well the interest will cover the FCO fee and the bank will get all of its money back. Else you and they will end up agreeing a payment plan that is affordable for you.

If you decide not to pay them they will ultimately pass the debt on to debt collectors and perhaps seek a CCJ against you. But if you act as suggested and assuming they see sense and cooperate all they will end up doing is providing you with an interest free loan for as long as it takes you to get the money from the US. Probably a few months.

Thanks for this. Very informative.

SliAbhaile

jamesd wrote: »

The bank can presumably handle providing a notary public or solicitor to witness your form PD 1522

Push very hard to get the bank to provide this service. If it comes out of your pocket it could cost you dearly.