standing order paid to incorrect account

fleur54

I have just found out that a standing order from my bank account has been paid to an incorrect egg esaver account. I sent a copy of the letter from my bank to YBS confirming the payments made from 2009 until now. I have now received a reply from YBS advising that it wasn't checked as it was an automated payment and they don't go by the name, only the account number and they are saying it was my fault . I explained that I wasn't able to see the account number or sort code my bank paid it to as the way it is viewed online banking it only shows my name and egg savings. The YBS are now saying I may not get my money back.
Am I entitled to get my money back, plus compensation and interest as how can the other person who has been receiving my payments for 3 years say the money belonged to them and regardless of it being my fault for giving an incorrect number surely the name should at least match the egg savings account and egg should have queried.
what are my next steps if they fail to recover the money for me form the other person egg account who I don't know.

Buzby

Basically, they are correct. As long as they are following your instructions with regard to the beneficiary Sort Code and Account number, their liability ends.

As it was you who provided the information that was incorrect, why would you believe you are entitled to compensation and interest? Did you not check to see if the payments you were making actually were being credited to the correct destination?

As for the person receiving the payments - who would they know who YOU were? All they see is an inbound credit, and this provides no details of how to contact the originator (you) or even stop it - short of closing their account - which would cause the amount to be bounced and returned to you.

The action you could take is limited to writing a letter to the account holder at Egg/YBS explaining the error on your part, and asking if they would mind returning it because of your oversight? You would sent this to YBS and ask them to forward it to the account holder credited. If they do, great - if not, that's an end to the matter.

fleur54

Hi thanks for your reply. As the esaver was online I didn't notice plus I already had another standing order set up from another account paid into my egg esaver account. The thing is YBS have taken the payment I made in sept and refunded that back to me when I contacted them in Oct 2012. How can they do this without the other persons permission if my money has been paid into this persons account. surely the other person must know the money doesn't belong to them.

Does the 1968 theft act apply as they are keeping money not owed to them?

dunstonh

The YBS are now saying I may not get my money back.

Unfortunately, they are correct. If the receiving account holder refuses to refund the money then you are stuffed.

Am I entitled to get my money back, plus compensation

no.

how can the other person who has been receiving my payments for 3 years say the money belonged to them and regardless of it being my fault for giving an incorrect number surely the name should at least match the egg savings account and egg should have queried.

The other person has no entitlement to that money but the bank cannot take the money back from them without permission. They cannot identify that person to you either for you to take action against them. They can pass a letter on to that person on your behalf but dont hold your breathe.

The thing is YBS have taken the payment I made in sept and refunded that back to me when I contacted them in Oct 2012. How can they do this without the other persons permission if my money has been paid into this persons account.

There is an ability to recall payments for a limited period.

surely the other person must know the money doesn't belong to them.

almost certainly they do. However, they wont know who to contact to say it is not theirs.

Does the 1968 theft act apply as they are keeping money not owed to them?

The problem is that you have not given the person any chance to refund the money. Plus, you dont know who it is that has got the money.

fleur54

Can I complain to the financial ombudsman or will be a waste of my time. Can they do anything?

balmk

Out of curiosity, had you never checked your savings account or received an annual statement advising you of deposits and interest earned?

Unless you can prove that the bank have been negligent in sending your payments, you don't have a leg to stand on with them, so the FO will be unable to help. Who set up the standing order - was it you or the bank?

roonaldo

fleur54 wrote: »

Can I complain to the financial ombudsman or will be a waste of my time. Can they do anything?

What do you expect FOS to do? The bank hasn't done anything wrong!

magpiecottage

The bank has done nothing wrong.

If you think you have a valid claim against the owner of the other account you COULD ask his/her bank for their details using Section 35 of the Data Protection Act but they do not have to comply with such a request unless a court orders them to.

Miss_Havisham

as various people have said, your only chance of recovering your money is to contact the person to whose account you have been paying the money for 3 years. In theory they should do the right thing and refund you. On the other hand they might have spent it all.

Unlike some of the earlier replies I think that their bank would have been able to trace the payments back to your bank which would have identified you as the sender (every payment has a unique ref number.) This does not mean their bank or yours are at fault. Modern automated bank payments are validated by sort code and account number only. This is assuming that the other person actually tried to find out what the money was for.

Good luck - let us know how you get on.

Miss H

PS personally when setting up a standing order I put in a small amount for the first payment and check that it goes to the right account, and then amend the amount. Might be worth trying.

dunstonh

Can I complain to the financial ombudsman or will be a waste of my time. Can they do anything?

The bank have done nothing wrong. The FOS has no remit over account holders.

Unlike some of the earlier replies I think that their bank would have been able to trace the payments back to your bank which would have identified you as the sender (every payment has a unique ref number.) This does not mean their bank or yours are at fault. Modern automated bank payments are validated by sort code and account number only. This is assuming that the other person actually tried to find out what the money was for.

The problem isnt tracing where it has gone. That is easy. The problem is that the receiving bank is not allowed to pass the details of the account holder on to the sending bank or the OP (without court order)

fleur54

Hi thanks for all your replies. The reason I didn't notice the payments weren't being paid was because another direct debit gets paid into the egg saver account. I only noticed when YBS took over it and I happened to compare it with my bank statement I noticed sept and oct weren't showing. I'm still not sure who input the incorrect acct no. as my bank are trying to find out how the standing order was set up whether by phone or internet banking etc so waiting on a copy showing how. Also the way the standing order shows on the online banking it doesn't show the sort code or account number the standing orders were being paid to it at egg it only shows my full name and egg esaver account so all the time it was being paid I couldn't tell where the payment was going to or not. Which isn't good. can't see the point in ever giving a name for the account if the banks don't use the name at all. anyway will keep you posted and fingers crossed the person it was paid to it honest and gives it back