Money sent to inactive bank account is now somewhere in banking cyberspace

V_R_Street

A rather large sum was sent to me via chaps unfortunately I did not realise that HSBC who I have a number of accounts with had made my flex savings account inactive. Anyway when the money failed to be credited on the same day I was eventually told after first being told to double check with the sender that they had the correct bank details, that the account had been made inactive because I hadn't used it in over 12 months. I was immediately able to reactivate it but told that the money would have bounced back to the senders Barclays account. Two days later the sender is stating the money has still not arrived back. I have called HSBC as the sender stated it might be sitting in an HSBC suspense account who may pay it into my now reactivated account, but they say they dont have it although it could take 10 working days to be sent back. I've called the sender who said he can ask Barclays to recover the money but this could take up to 20 working days!!!!. Does this sound correct, why would it take so long and where is the money now. I'm feeling a little desperate as I needed the funds to complete on a house sale.

xylophone

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/42/42_automated.htm

Did HSBC make no attempt at all to locate the account and credit the payment?

henm2

More than likely the flexible saver account was frozen due to being inactive for more than 2 years (their dormancy procedures). However unlikely that the money will have been sent back and will more than likely be sat in one of HSBC's internal awaiting you reactivating the savings account.

To reactive the account go into a branch with either passport or driving licence as ID and they will update your details and reactivate the account. Insist they trace where the money is and get them to put it into the account asap.Ask for compensation for the distress caused.

Edit: just another thought. A large sum of money going to a dormant account. This transaction may also have fallen foul of HSBC's 'safeguard' procedures and may be caught up in an AML check.

agrinnall

I find it highly unlikely that a CHAPS payment will have gone missing, once the system failed to find a valid destination account it should have been returned to the sender - in fact, I'm not even sure it would ever have left the sender's account in such circumstances.

Stevie_Palimo

I paid money into a wrong business account that had since closed and it did leave my account and then sit in a holding account for the business one that was closed, After I made a call and explained my issue I waited around 5 days or so and it was returned to my account. This was around 2 years ago now so things may have changed.

V_R_Street

They say not, but get a different answers from HSBC telephone advisors some saying it was never received and would have bounced back and another stating it could be in a suspense account. Still confused

V_R_Street

What is an AML check and how long would this take

societys_child

V_R_Street wrote: »

What is an AML check and how long would this take

Anti money laundering. It "takes as long as it takes", so hope it isn't that.

Ed-1

V_R_Street wrote: »

What is an AML check and how long would this take

AML = anti-money laundering. Can take anything from days to months and can happen to anyone at any time if a bank wants to check a transaction to make sure it's not the proceeds of crime (an unusually high transaction for a customer into a dormant account could be the proceeds of crime in the view of the bank). When they freeze an account for AML checks they can't even tell the customer - that's how ridiculous it's got.