Bank won't return money to my account

last-again

Without her knowledge I put £150 into a HBOS account belonging to my daughter. When I mentioned what I'd done she told me the account was closed. When HBOS were first contacted by her they told her the money would be returned to my HBOS account within 7 days. I have since discovered that she owes money to HBOS and the money has gone into an lloyds group account with the sort codes 30 00 00 (an unpaid account sort code) I have received a letter basically telling me that they've got my money and if I want it back I have to "discuss it with the benefactor". I had no idea the account was closed and no idea of her financial problems and paid the money into the account in good faith. Can they actually take my money to pay off her debts?

opinions4u

Can they actually take my money to pay off her debts?

if the money had gone into her account it would then be her money. At that point, the answer to your question becomes yes.

But you should simply complain. They'll back down and refund given the circumstances you describe.

Agricolae

Technically-speaking yes they can take the money if you paid it into an account that was written off due to outstanding debts. Or at least that appears to be the general practice as I have seen it happen quite a few times. Hopefully someone who works in a collections department at a bank may be able to clear that up.

However I think if you are able to get hold of the correct department (might be tricky if you're not an HBOS customer) then they may return the funds as they were paid to the wrong account in error.

It's possible they may say you should have checked the account details were correct before sending the payment (this would be harsh but probably fair according to T&Cs), but I hope they are more judicious.

last-again

Thanks for responses. I am a HBOS customer and I would have had no reason to check the details were correct as I had paid money to the account some time ago and it was set up on my online banking. Hopefully they will agree to refund.

pmduk

If you don't get a refund, at least you've benefited your daughter by the desired amount, albeit by reducing her indebtedness.

dalesrider

last-again wrote: »

paid the money into the account in good faith. Can they actually take my money to pay off her debts?

Yes, they can.

Once you press submit, that money is no longer yours. It becomes the account owners. Given that her account was closed and possibley written off. Anything that comes that way will go to paying of the debt.

I would guess the rep she spoke to, was not aware of why the account was closed and was just using std returns info.

jalexa

last-again wrote: »

Hopefully they will agree to refund.

Had the money been paid to an open (daughter's) account then the funds would belong to your daughter and be open to "set off". However I believe any amount so appropriated would be subject to a "means test".

However I am less certain (than others) that it is lawful to appropriate funds diverted to a holding account without reference to the intended account holder's means.

TBH I'm not much wiser on that than the poster who posted "Given that her account was closed and possibley written off. Anything that comes that way will go to paying of the debt.". Hmm... surely "possibley" (or possibly?) is relevant to the logic of the action?

I suggest you test the bank's action via a formal complaint. If you remain dissatisfied after 8 weeks you can then ask the Financial Ombudsman Service to consider the issue. Take advice whether you (or your daughter) should be the complainant.