Money sent to hsbc inactive/dormant current account

just_about

I just sent £2500 from my Nationwide to a HSBC business current account, and the payment got sent via faster payment.

Now the recipient is saying that he cannot confirm me about the payment till Monday as the account number he provided was by mistake for a dormant current account and he cannot tell me before Monday if the payment has been credited in the account or bounced back as HSBC has refused to give him any further information till he activates the account on Monday, for which he has apparently fixed up a meeting with the branch manager.

Now I am getting sick worried about this as the payment has not credited/bounced back in my account as well, and Nationwide is asking me to check with the recipient.

Can someone help me with this ? Did anyone have such an experience before ?

1. Does faster payments get credited to a dormant current account if the account number and sort code is correct ?
2. Will the payment bounce back in my account in case there is any problem ?
3. Has the funds already been credited to this dormant account/will be credited as soon the account becomes active ?

Please help me with this ! Thanks for the help in advance

grumbler

Relax.
There is nothing to worry about unless the recipient is pulling a fast one.

just_about

grumbler wrote: »

Relax.
There is nothing to worry about unless the recipient is pulling a fast one.

So the money would be credited in his account regardless ?

agrinnall

I'm not sure why you're worrying too much about it, you sent the money to the account provided, it's not your concern that the information given to you was incorrect.

The most likely situation is that the money has gone into a suspense account at HSBC, and when the dormant account is reactivated they will manually transfer the money into it. No action required from you.

The less likely alternative is that the money will be returned to you, in which case you'll either need to resend it to the same account if it's active, or to a different account that the payee tells you to use.

If you have paid the money in order for goods or a service to be provided I would say you have fulfilled your part of the contract already and you should expect the business to fulfil theirs even if they don't have their hands on the money yet.

jonesMUFCforever

If the account is dormant then it could be sent back to OP's account.
It might take a day or so.

10pence

jonesMUFCforever wrote: »

If the account is dormant then it could be sent back to OP's account.
It might take a day or so.

HSBC won't automatically return the funds, if the account is dormant/closed it will be sent to a 'holding' or suspense account.
The thread starter could request his bank do a trace and then it could force the return if account is dormant.

If the account is dormant then it will need to be reactivated by the account holder(s)/signatories in person. This could be done at branch and won't require a branch manager as any staff member should be able to do reactivate an account - unless branch insist that it be a business specialist or commercial manager with it being a business account.

jonesMUFCforever

10pence wrote: »

HSBC won't automatically return the funds, if the account is dormant/closed it will be sent to a 'holding' or suspense account.
The thread starter could request his bank do a trace and then it could force the return if account is dormant.

If the account is dormant then it will need to be reactivated by the account holder(s)/signatories in person. This could be done at branch and won't require a branch manager as any staff member should be able to do reactivate an account - unless branch insist that it be a business specialist or commercial manager with it being a business account.

What right do HSBC have to hold onto the funds?
Either it goes into the account or has to be returned.
I know this will first go to a suspense account then looked at by a human rather than an automated process, but the bank has no right to keep hold of it.

tarajayneb

Can any one help me I have a money transfer issue - inset to wrong account I don't know the person danske bank told me they have refused to give it back it's 450 so I don't know if it's worth contacting a court order to get the name. Transfer was from danske to halifax anyone been in the same situation or how they got money back?

I have complained to danske with no luck in them helping. I have asked halifax for evidence that they have been contacted and that the account is a valid one. But I am still waiting to hear about this.

grumbler

MSE articles:

What to do if you send money to wrong bank account

Sent money to the wrong bank account?

jonesMUFCforever

I have had 2 letters in post from different banks this week with new T&C from 22/11/2015 - both state from then that if monies are credited in error then they will deduct the monies from my account before asking but advising me after the event.

grumbler

I think this means a different sort of 'error'.
In cases like this it's the word of the sender against the word of the recipient, and banks generally aren't in position to judge if the recipient refuses to return the money.

A court is in position, but the stupid ill-thought DPA allegedly creates obstacles for taking such simple cases to courts.