Bank Mistake

callum9999

YorkshireBoy wrote: »

I'm obviously talking about corporate embarrassment. If this is happening a lot, then systems (both prevention and remedy) need to improve.I didn't mention going to the regulator (which would be FCA, and to a lesser degree here, the PRA). I said go to the FOS. Indeed, the FOS themselves say "we don't write the rules for financial businesses – or fine them if rules are broken. That’s the regulator’s job."

I struggle to believe this is happening a lot, and I know you are talking about corporate embarrassment - I merely don't accept it's particularly embarrassing.

I was talking about the ombudsman.

Westie983

grumbler wrote: »

What branch?
It wasn't the OP's branch's error.

Lloyds where their bank account is held, they said they have already spoken to the branch manager!

I know it was a error of the recipient bank but the reclaim the money this is done by visiting their bank, as they are the ones out of pocket.

**Edit **

I see further up the thread someone else has explained how it can work.

Customers money is refunded from the NPA (internal accounts) and its reclaimed from the recipient (builder) who has had an extra £100 that they were not entitled to, or it is wiped off as bank error.

The cashier must have credited the account with £1900 otherwise the till wouldn't have balanced, it could have also been incorrectly scanned, either way with the copy cheque showing the amount being £1800, The error would only have come to light by the issuing customer, so its their bank they go to to get their account corrected.

Either way the OP shouldn't have to wait or do the investigating themselves.

grumbler

Westie983 wrote: »

I know it was a error of the recipient bank but the reclaim the money this is done by visiting their bank, as they are the ones out of pocket.

Why visiting? The branch staff cannot do anything that telephone CS can't.
I can understand visiting the branch if it was this branch's fault.

Super_Whiskey

Ballard wrote: »

I would be surprised (although not amazed) if the payee didn't get £1,900. I've Googled 'unpaid cheque' and the first result is attached. The 300 on the right hand side at the bottom is £3.00 and it's this figure that drives the entries.

That cheque is out-dated. Modern cheques do not get encoded like that nowadays. They will have the serial number, sort code and account number on. Any further encoding will either be done via the processing centre or through the deposit machine.

Westie983 wrote: »

The cashier must have credited the account with £1900 otherwise the till wouldn't have balanced, it could have also been incorrectly scanned, either way with the copy cheque showing the amount being £1800, The error would only have come to light by the issuing customer, so its their bank they go to to get their account corrected.

Either way the OP shouldn't have to wait or do the investigating themselves.

I've seen this mentioned a couple of times and in my experience that is untrue. Most bank staff rarely have the time to go back through their work to check to make sure their entries match the cheques received.


Either way, as mentioned before, this is quite clearly an easy one to fix. Bank credits OP £100 and goes about retrieving it from the recipient.

Chino

Super_Whiskey wrote: »

Modern cheques do not get encoded like that nowadays. They will have the serial number, sort code and account number on.

In fact, exactly like the cheque in the picture has.

Super_Whiskey

Chino wrote: »

In fact, exactly like the cheque in the picture has.

Minus the transaction code and the 00000300 part so not quite exactly.

Westie983

Super_Whiskey wrote: »

I've seen this mentioned a couple of times and in my experience that is untrue. Most bank staff rarely have the time to go back through their work to check to make sure their entries match the cheques received.

Either way, as mentioned before, this is quite clearly an easy one to fix. Bank credits OP £100 and goes about retrieving it from the recipient.

Of course they do, if you have a credit entry for £1900 and the cheque scans at £1800 the balance will be out and the cashier cant continue and complete the transaction.

If (this is more likely) the cheque was scanned as £1900, and the credit entry was added automatically based on the scanned cheque amount the figures would balance and the cashier can complete the transaction.

At the end of the day when the cheques are sent for processing the cheques are checked against a list of cheques taken that day, for errors like pre dated cheques or unsigned cheques as these would have been scanned but not rejected if not spotted at the point they were credited, and also to check all cheques are sent for processing and you haven't accidentally put a cheque in the wrong filing box (vouchers to be retained in branch) or a cheque is not still sitting in the hopper as it was the last customer you served...

Checking of the cheques is part of the cashing up procedure at the end of every working day, along with the paying in machines whose cheques also needed checking and validating.

Of course I am taking for my experience and other banks may work differently but your comment assumes that there isn't time to check those that are processed.

I agree with the end of your post where the £100 is credited back via the bank and its debited from the recipient, as part of the investigation, after all they have accepted an error was made.

Super_Whiskey

Westie983 wrote: »

At the end of the day when the cheques are sent for processing the cheques are checked against a list of cheques taken that day, for errors like pre dated cheques or unsigned cheques as these would have been scanned but not rejected if not spotted at the point they were credited, and also to check all cheques are sent for processing and you haven't accidentally put a cheque in the wrong filing box (vouchers to be retained in branch) or a cheque is not still sitting in the hopper as it was the last customer you served...

So if, as you state, the cashier is checking for pre or post-dated cheques, signatures etc, at first point of contact surely they would see the OP's cheque didn't match the amount that the recipient/scanner let them deposit in to their account?

Yorkshire_Pud

Mrs.W wrote: »

Last month my OH used a cheque from his Lloyds bank business account to pay a plumber who did some work for us.

The cheque was for the sum of £1800.00. Lloyds freely admit there was a keying error, their error - they have image evidence that the cheque was made out for £1800.00 - and they incorrectly paid out £1900.00.

It took us a week to realise they had overpaid, and ask the branch manager to remedy their mistake. The manager said we needed to go through the telephone banking system to remedy their mistake.

OK, we tried. Promises of call backs never happened. We were passed from pillar to post. No one could give the number or name of anyone who could sort out this problem. Many times we were told, "Can't you just ask for the money back from the tradesman?!"

Well, he is not answering his phone to us. Fat chance of chasing him for the money. And we should not have to!

My OH is now so irate, he is about to start legal proceedings, cost be damned. It is the principle that makes him so irate. The bank admits this is a problem they caused, yet they are doing their best to avoid making good on their mistake.

Is there anything anyone can suggest - above telephone calls and writing letters to Lloyds, because they are ignored - to try to resolve this situation?

If you say you want to make a formal complaint with compensation they will always allocate a named person and a reference number, no need to mess about with call centre staff or branch staff. That's how the system works. If its not working that way you are asking the wrong questions or just getting 'irate' and getting nowhere.

As for Lloyds suggesting you ask the plumber for £100 overpayment by Lloyds error?! I find it hard to believe this happened sorry.

Ballard

Super_Whiskey wrote: »

That cheque is out-dated. Modern cheques do not get encoded like that nowadays. They will have the serial number, sort code and account number on. Any further encoding will either be done via the processing centre or through the deposit machine.

Thanks for correcting me. It's been ages since I've had to take any notice of the clearing so I'm not shocked to have been proved wrong.