Halifax new terms and conditions 2014

We are adding condition 6.1 (p) as follows: “If we are advised, for example by another bank, that money has been paid into your account by mistake, we can remove up to the amount of the mistaken payment from your account. We do not have to ask you to agree to this, but will let you know if it happens. If this happens we will always act in a reasonably appropriate way and will try to minimise any inconvenience to you.”
This cannot be right, no checks, no time limit, anyone can take money back (banks an example)... Taking to ombudsman, any ideas to challenge this. Was told I'm the only one. They say contact us OR in force on December 1, when you do they say it will happen anyway. HELP
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  • colsten
    colsten Posts: 17,597
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    What's your issue with giving money back that doesn't belong to you?

    What's your issue with somebody else having to give your money back if it went into their account by mistake?
  • None at all
    But how is it decided the transfer was in error
    If you are expecting money transferred when you sell a car its a bit rich if that person then claims it was an error. As one banker said, its a recipe for fraud. Or is it, I don't know enough about the processes in banking to be sure that taking money without your concent is safe. Hence the question.
  • Steve_xx
    Steve_xx Posts: 6,960
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    It wont be as easy as you might imagine to recover monies in this way. I'm sure that the banks wont simply whip cash from your account without very good information to cause them to do so.

    In the sample you mention, of a car sale, it will become all too quickly familiar if this sort of thing was to start happening.

    This clause is related to money mistakenly deposited into the wrong account. Not the I bought a car and it wont go situation.

    It really wont be as simple as someone saying they have mistakenly deposited money into the wrong account and they want it back.

    In any case, if your bank wrongly hands out cash to someone from your account then the end result will be that the bank will have to put it back there.
  • stclair
    stclair Posts: 6,843
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    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
  • eskbanker
    eskbanker Posts: 29,932
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    I believe this is to do with the new(ish) code of practice introduced by the Payments Council earlier this year and to which the Lloyds Banking Group has signed up (not sure if the other LBG banks are also changing their Ts & Cs too?). Prior to this coming in, recovery of misdirected payments was practically at the mercy of the recipient, whereas now there is a more structured process to handle this.

    The quoted wording of the new clause doesn't spell out the checks and balances but part of the process does involve ascertaining whether or not the recipient is contesting the recovery, so in the car-buying scenario, the sender couldn't simply recover the funds if the recipient challenged this, as this clearly wouldn't be compliant with their statement that "we will always act in a reasonably appropriate way and will try to minimise any inconvenience to you".
  • Thank you, not sure Halifax conditions comply as doesn't allow you to dispute the 'error' before money goes which I think is implicit in the code. The bank is calling me tomorrow, I'll ask about the code then. I think I would be happier if the condition included 'only with banks who adopt the code'.
  • Steve_xx
    Steve_xx Posts: 6,960
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    1Steven wrote: »
    Thank you, not sure Halifax conditions comply as doesn't allow you to dispute the 'error' before money goes which I think is implicit in the code. The bank is calling me tomorrow, I'll ask about the code then. I think I would be happier if the condition included 'only with banks who adopt the code'.
    Look forward to hearing the results of your phone call. But, as I said earlier, if the bank gives your cash to someone who's not entitled to have it then it will have to suffer the loss and reinstate you to your rightful position.
  • eskbanker
    eskbanker Posts: 29,932
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    1Steven wrote: »
    Thank you, not sure Halifax conditions comply as doesn't allow you to dispute the 'error' before money goes which I think is implicit in the code. The bank is calling me tomorrow, I'll ask about the code then. I think I would be happier if the condition included 'only with banks who adopt the code'.

    As per previous poster it will be interesting to hear what they have to say, but personally I think a lot comes down to interpretation - it doesn't say they will remove funds in these circumstances but merely that they can. I'd still expect that their bit about acting reasonably would preclude automatic removal without reasonable attempts being made to identify the full picture first.
  • chanz4
    chanz4 Posts: 10,852
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    stop the I have received funds I shouldn't and don't want to give back threads
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • It will be ALL financial institutions that will amend their terms and conditions.
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