Help, bank skipped my rent standing order, didnt find out for 2 weeks

CornishAndy

Dear readers,

Please forgive a newbie if this is a frequent question, I did a quick search of the forums first.

My rent is set up on standing order, but my bank wrote to me saying they skipped the standing order, they had connection problems with landlord's bank and didn't pay my rent this month. I've only just found out by letter well over 2 weeks later, and now haven't got the money (I paid an extra utility bill after finding myself with enough cash).
Short question, what can I do?

Is it normal for banks to decide unilaterally to not pay my standing order if they have a inter-bank glitch, when at the time I would have had sufficient funds in the account? If it was a temporary bank interconnection problem surely they are bound by law to pay it as soon as the connection came up? Is it in my rights to request some kind of reparation for this now that I'm short? I'm thinking I should at least demand a short-term interest-free overdraft for the trouble they've put me in, or is there more they should do for me?

Adding insult to injury, they're now asking that I go in and create a new standing order to replace it, indicating that the !!!!-up wasn't as temporary as the bank-to-bank connection glitch they claim!

Sorry for the long post,
Many thanks for any tips,
Andy

grumbler

CornishAndy wrote: »

...(I paid an extra utility bill after finding myself with enough cash).

This sounds funny, doesn't it? In your position you can't afford not to keep your eye on what is going on with your account. There is a simple way of doing this - online banking. If you find yourself with extra cash it's very easy to find out why this happened.

If you suffered some loss because of the missed payment, you would be in a position to claim compensation, but I think this is not the case.

Adding insult to injury, they're now asking that I go in and create a new standing order to replace it,

You can't be serious. It took you more time to post here than it is needed to create a new standing order.

CornishAndy

Humbly agree, point taken, lesson learned. Buyer beware and keep a closer eye on bank account.

However, does that really let the bank off the hook for skipping a standing order?
If I have to monitor my bank account daily to ensure the bank do what I tell them to, what's the point of standing orders in the first place?

thatsean

If the funds were there then you could raise a formal complaint - you're right, the point of a SO is that (where funds allow) they pay it, so it's not unreasonable to expect them to do that. Don't expect more than an apology and £20 though.

stclair

I am sorry to hear that your standing order was not paid.

However just to make you aware due to an issue with Lloyds TSB not being able to send or receive faster payments on 21/01/13 all payments sent to them was returned back to the account unpaid.

The bank did make customers aware of this issue by putting a message on the IVR and including a message on the NatWest website. As Lloyds TSB created the issue its them you need to raise your concern with, Natwest have no control over what does and does not happen with Lloyds TSB system.



If a standing order is returned for what ever reason they will automatically be cancelled. If their is a glitch with the receiving banking my understanding is the bank is under no obligation to re-attempt to send the payment.

You may find it useful to download the Natwest app so enable you to check your account whilst your out and about etc.

http://www.natwest.com/personal/mobile-phone-banking.ashx

However I hope you get the matter sorted.

CornishAndy

Thanks all for the tips, and the simple explanation of how Natwest treats the bounces.

Andy

dalesrider

CornishAndy wrote: »

Thanks all for the tips, and the simple explanation of how Natwest treats the bounces.

Andy

Same would go for any bank as well.

There has been a lot of updating of the faster payment systems covering most of the banks over the last month.

Get online banking set up and setting up s/o etc is much easier.

jonesMUFCforever

There was a problem between RBS and Lloyds Tsb faster payments -including standing orders last month.
I know Lloyds are sending out letters to affected customers - payments will not be automatically sent again.
Go through complaints procedure if branch cannot help you to sort it.

stclair

jonesMUFCforever wrote: »

There was a problem between RBS and Lloyds Tsb faster payments -including standing orders last month.
I know Lloyds are sending out letters to affected customers - payments will not be automatically sent again.
Go through complaints procedure if branch cannot help you to sort it.

When was the RBS problem?

jonesMUFCforever

Around 21st I think.
Problem was with Lloyds - RBS/Nat West sent payments to Lloyds accounts which were rejected and returned to NW.