Ridiculous Bank charges on a failed transaction - What can I do?

Mrbusiness_2

Hi Guys

I ordered that my bank send a sum of money to another UK bank.

I would have done so myself via Faster payment (free) but dont have a digipass yet.

The bank sent it by CHAPS. Cost £25

The receiving bank didnt get the money.

It was returned to my original bank less £20 (I assume deducted by the clearing house).

Apparently the sort code was incorrect, but the one I gave was DEFINATELY correct.

The bank sent it again via chaps, and again it was returned back less £20.

It has so far cost me £65 + ......and the CHAPS hasnt worked.

What can I do about all these bank charges? Do I have any legal right to appeal? The info I provided was correct and even verified by the sending bank.

Dr_Cuckoo3

The Bank may use a different sort code for CHAPS receipts



In the above example sort code 08-60-81 accepts faster payments and BACS , but not CHAPS

Dr_Cuckoo3

http://www.fasterpayments.org.uk/faster_payments/sort_code/-/page/1949/

Mrbusiness_2

Dr_Cuckoo3 wrote: »

Thanks for the above.

But I have used it already. The bank I am sending to is Barclays Bank and the sort code accepts ALL forms of transfer. It is a new account with £0 in it but it is fully activated per my endless conversations with Barclays staff.

To be honest I am more worried/angry with all the bank charges I have accumulated on this one unsuccesful transfer - Do i have any legal right to reclaim the bank charges?

Dr_Cuckoo3

It may be worth performing other tests to see if the account is fully open

http://www.postcodeanywhere.co.uk/demos/bankvalidator.aspx

or a payment from another bank (even opening another account for this purpose)

Not many people refer to HSBC's PIN device as a digipass and they are the main issuer as far as I am aware

I hold accounts with banks were they do call a digipass by it's name eg Bank of Cyprus / Triodos

Mrbusiness_2

I am actually transferring from Bank of Cyprus UK.

(Oh and i've used that account checker as well).


The clearing house has said that the sort code is incorrect/unrecognisable on return on the funds to BOC. Its definately correct though!

Dr_Cuckoo3

It looks like the fault is with Bank of Cyprus

You have unusual circumstances in that your account is with a non-mainstream bank (with a lot of recent media attention) and your new account is receiving funds using a method which I doubt is common for initial deposits

I don't have a digipass for my Bank of Cyprus account yet either , so I have to use the debit card to move funds into a savings account and onwards from there

xylophone

http://www.chapsco.co.uk/chaps_company/members/
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/42/42_automated.htm
"The main banks and larger building societies are "direct" members of CHAPS. There are also over 400 "indirect" members – typically smaller banks and building societies who have access to the system through a "direct" member. This arrangement is similar to the way the cheque clearing system is set up."

BOC is not a "direct member" - can some problem be occurring with the BOC/direct member interface? http://www.paymentscouncil.org.uk/files/payments_council/guidance_document_2011_v2.pdf
"As CHAPS is a real-time gross settlement system, each payment is guaranteed
and irrevocable.

PSPs that are not direct members of CHAPS will be subject to the contractual
arrangements that they have with the direct member through whom they
process CHAPS payments. Direct members are those PSPs that are members of
the scheme. Indirect members are PSPs that do not have a direct connection to
the CHAPS technical infrastructure and utilise the services of a direct member to
send payments through CHAPS."

Mrbusiness_2

They apparenrtly use Lloyds as a clearing house.

I still dont understand why lloyds are returning it as " Sort code unrecognisable" when it obviously is.

My concern however is still the £65 of bank charges accumulated!!

xylophone

You need a clear explanation of what exactly is causing the problem.
BOC initiated the payment- insist that they find out.

Mrbusiness_2

Well they have told me the sort code is incorrect.

The sort code is definately valid. Even though its a new account I have checked it with Barclays and online via two different sort code checkers.