Fraudulent Bank Transfer removed from my account (2)

JABA

I can see from 2011 there was a similar post, so I would appreciate some advice regarding this.

Last week I received a call from a potential customer that wanted to buy products from my online website. He called back on the 1.st of September and confirmed his order and made payment the same morning by online bank transfer.

The funds cleared into my account early in the day, he was a little pushy to try to rush things, but I told him I had to wait at least 24 hours before I would be able to ship the products out.
It was goods for the total value of £10.000
(please do not ask what goods etc., because this is irrelevant in this case, these are normal transactions from time to time in my online business, I admit not very often this big order, but does happen)

I felt a bit suspicious, so I contacted my business bank account manager, I provided the name and address of the payee, and any other relevant details.

I got reply from him that the transfer was secure, the name of the payee was the same as the name of the person I was sending the goods to. He also confirmed the transaction had been made online, and that the payment was safe, and could NOT BE RECALLED by the bank, without my authorisation.
This all was confirmed by email on the 1.st of September.

Furthermore I requested copy of passport and proof of address by the buyer, which I provided me by email. The names and address on both ID and Electric bill was the same as the postal address, and the name of the payee.

So late on the 2.nd of September, just before Special delivery cut off time, I posted the goods, so there was at least approx. 26 - 28 hours from payment was made, until I shipped the goods.

On the 3.rd of September, I noticed that around £400 had been removed from my bank account, so I contacted my bank to investigate this, nobody could understand what this was for at this stage.

At around 4 pm on the 3 September, my business bank manager called me, his first question was if I had shipped the goods, which i confirmed I had. He then explained me that HSBC had tried to recover the funds from my bank (other bank name), but due to various reasons had only been able to recover £400 or so, but that the funds into my account was fraudulent funds, and most likely will be removed shortly.

However first I acted in good faith, and this was not an unusual transaction for me to have, I also requested special information from my bank and the customer in this case.
Due to a glitch in the banking system I am made to pay for their weakness in security of online transfers / bank transfers?

Now I also have written confirmation from the bank via email, that confirms my transaction was safe and could not be revoked, which now turns out to be wrong information.

I have been a customer with this bank for almost 14 years now, and I feel extremely betrayed by the banks lack of security and how they simply just want pass the problem over to me!

I have made a police report on this issue, and would greatly appreciate some advice in this case.

The products of £10.000 aren't even mine, as I sold them on consignment for a small mark up, and still need to pay the suppliers for this goods that they gave to me.

pmduk

I'm not an expert in this area, but I'd use their complaints procedure. After all, you relied on their ability to give you accurate advice on their own procedures. Remember, you may also have access to the Financial Ombudsman, but this depends on the size of your company so double-check this first.

JABA

I am a sole trader small business.

agrinnall

Given what you've told us I can't really see how the bank could fail to uphold a complaint, they are clearly in the wrong both for telling you that the transfer was from a valid source and that it could not be reversed.

I haven't been able to determine if you can use the FOS should they decline to compensate you, so you may need to call them to find out if they will consider your case.

http://www.financial-ombudsman.org.uk/default.htm

In any case you still have the option of making a Small Claim against the bank.

https://www.moneyclaim.gov.uk/web/mcol/welcome

mgdavid

OP, was the value exactly £10,000 or a bit more, or a bit less? Because the small claims court limit is £10,000.

agrinnall

mgdavid wrote: »

OP, was the value exactly £10,000 or a bit more, or a bit less? Because the small claims court limit is £10,000.

Although you can use MCOL for claims up to £100,000.

https://www.gov.uk/make-court-claim-for-money/court-fees

JABA

It was exactly £10.000.

I had a meeting today, and was told that an initial removal of funds approx. £450 was the only part that could be removed, as Barclays confirmed nothing more could be removed by the other bank. I got email case was closed, and they would try to return my £450 after complaint case. All very nice and good!

I asked if my other personal accounts was safe, and was told yes, and also no more action against my business account would be taken. Case closed, I was told, only the matter of the refund of the £450.

I arrive home, check my bank accounts, and see the £450 has be returned!

But now they have removed funds from 2 of my private accounts, transferring funds into my business account, 2 amounts of approx £400. So now total £1250 in my business account, together with the £450 they returned earlier.

Now this total of £1250 gets removed in full.

This after given assurances that case was closed, and also how they have authority to move money from my private accounts to business account without my authorization?

Now I am furious over this!

masonic

JABA wrote: »

But now they have removed funds from 2 of my private accounts, transferring funds into my business account, 2 amounts of approx £400. So now total £1250 in my business account, together with the £450 they returned earlier.

Now this total of £1250 gets removed in full.

Wow! At least by involving your consumer accounts in this mess there's no doubt you'll be able to make use of the Financial Ombudsman if you need to do so, at least for those transactions.

10pence

JABA wrote: »

But now they have removed funds from 2 of my private accounts, transferring funds into my business account, 2 amounts of approx £400. So now total £1250 in my business account, together with the £450 they returned earlier.

Now this total of £1250 gets removed in full.

This after given assurances that case was closed, and also how they have authority to move money from my private accounts to business account without my authorization?

Now I am furious over this!

What type of business is this; sole trader, limited company etc?

How did the bank justify the transfer of funds, did they use the 'right of "set-off"?

Thrugelmir

Furthermore I requested copy of passport and proof of address by the buyer, which I provided me by email. The names and address on both ID and Electric bill was the same as the postal address, and the name of the payee.

So what. If someone is going to scam £10k of goods. Then they'll be prepared to provide suitable evidence. None of this proves who the person actually is.

Thrugelmir

JABA wrote: »

I got reply from him that the transfer was secure, the name of the payee was the same as the name of the person I was sending the goods to. He also confirmed the transaction had been made online, and that the payment was safe, and could NOT BE RECALLED by the bank, without my authorisation.
This all was confirmed by email on the 1.st of September.

The bank would be none the wiser if the transaction was fraudelent or not.