Whose bank is liable for a lost payment?

lilithepink

Hi - I have a problem.
My new temporary lodger paid his first month's rent via internet banking but it never turned up in my account. His bank says that it's left his account and the bank (HSBC) and the trace said that it had gone into mine (Nationwide). Mine ran searches on my account, his account and the trace and came up with nothing (including no record of ever having been contacted by HSBC). Nationwide are saying that HSBC are liable and that they should recall the payment. HSBC are saying that the money was paid in good faith and they can't recall the payment. Meanwhile I'm £300 down in rent and the lodger can't afford a duplicate payment. Does anyone know which of our banks is liable for this mess and how to make them sort it out? I've checked the lodger's transaction and all my bank details were correctly inputted. Help!!
Thank you in advance
L

opinions4u

The sending bank.

I'd suggest your lodger checks the sort code and account number used. In fact, I'd suggest you get him to show you the full transaction details used.

lilithepink

Thanks for such a swift reply, but I've already done that and he's inputted everything correctly.

Dr_Cuckoo3

How did you verify that the correct sort code and account number were used ?

HSBC do not record this information on statements and recent transcations via internet banking

Valli

lilithepink wrote: »

Hi - I have a problem.
My new temporary lodger paid his first month's rent via internet banking but it never turned up in my account. His bank says that it's left his account and the bank (HSBC) and the trace said that it had gone into mine (Nationwide). Mine ran searches on my account, his account and the trace and came up with nothing (including no record of ever having been contacted by HSBC). Nationwide are saying that HSBC are liable and that they should recall the payment. HSBC are saying that the money was paid in good faith and they can't recall the payment. Meanwhile I'm £300 down in rent and the lodger can't afford a duplicate payment. Does anyone know which of our banks is liable for this mess and how to make them sort it out? I've checked the lodger's transaction and all my bank details were correctly inputted. Help!!
Thank you in advance
L

Well the quick answer is you haven't recieved monies due therefore they are still due to you and it's the lodger's duty to pay.

HOW have YOU checked the lodger's transaction?

Do you mean you have checked the sort code and A/c number HE SAYS he used?

Sometimes, when I'm generating a new payment I send a nominal amount e.g. £1. I then have the destination A/c number in my bank records and if it does get lost I have only lost a £1.

gt94sss2

HSBC Internet Banking saves the details of where each payment was made under the 'payments' area to make future payments easier.

They also check that the sort code and account number are a valid combination before sending a payment.

However, while that reduces errors, its still possible for someone to put in the wrong details/transpose something and the resulting details are 'valid'

Regards
Sunil

lilithepink

Valli wrote: »

HOW have YOU checked the lodger's transaction?

Do you mean you have checked the sort code and A/c number HE SAYS he used?

Yup - sat on with him and his computer and looked at all the details of the transaction online. Everything right. But thank you.

lilithepink

gt94sss2 wrote: »

HSBC Internet Banking saves the details of where each payment was made under the 'payments' area to make future payments easier.

They also check that the sort code and account number are a valid combination before sending a payment.

However, while that reduces errors, its still possible for someone to put in the wrong details/transpose something and the resulting details are 'valid'

Regards
Sunil

Thanks Sunil, I think that's what has happened. He's been back to the bank and they are being very shifty about it. He's also agreed to pay the balance of his rent on departure regardless of whether the bank has sorted it by then.

Many thanks to all who took the time to reply to my question, very much appreciated. L

pmduk

He should make a formal complaint to his bank. Hopefully this will ensure that the problem is dealt with by the correct people, rather than being fobbed off by branch or call centre staff.

Dr_Cuckoo3

If I was feeling a bit cheeky I could create the bill payment in the landlord's name but put the sort code and account number of a friend or one of my other accounts instead of the landlord's - it would look like the payment had been sent to the landlord (HSBC don't quote the sort code / account number on statements or details of the last payment to a particular beneficiary in the list of bill payments)

I could always delete the friend's sort code / account number from the list of bill payments and replace it with the landlord's correct sort code / account number later incase they ask to see it :whistle: