Barclays refusing to reimburse money paid to wrong account

Jmoo

Hello all,

My sister has just taken a new property up and has just paid rent upfront to the landlord with the agreed BACS details supplied by the letting agent. However, several days later it transpired they had provided money to an account which was an old account of the landlord, and the landlord had failed to provide new up-to-date information.

Clearly this is the landlord's mistake but nonetheless given it was an old defunct account we assumed it would be returned as soon as Barclays and Natwest were informed of the mistake.

However, a week later, despite best efforts to contact both banks and cooperation from all parties, Barclays are refusing to return the money. I find it hard to believe given this account is said to be closed, that it is not possible to trace the money and get it returned.

It is clearly not her mistake, and she was only following the orders of others (so really they should take responsibility) but surely the bank should have cooperated more?

Robin9

This is the landlords problem. It's up to him to sort - not your sister.

cheesetoast

Robin9 wrote: »

This is the landlords problem. It's up to him to sort - not your sister.

Exactly what I was going to say! Although I would add that it would be worth withholding any further payments until the landlord confirms the new bank details in writing, in case he makes a second mess-up.

And if he asks you to "pay the rent again for now" and he'll "reimburse you when he gets it back from the bank", tell him to jog on.

JuicyJesus

In any event, the money is in the landlord's account and therefore it has been paid to the landlord. I have no idea what is meant by "defunct" account but a Faster Payment to an actually closed account would have been returned or just failed to send.


Whether that account is blocked, overdrawn or the landlord just doesn't like money going into it, it is none of your sister's concern - she has paid the money for her rental according to details she was provided and she has therefore done her bit. Let the landlord argue the toss with Barclays and the agent.

mt99

I agree with the above - in particular:


1. the old account cannot be 'closed' otherwise the payment would not have gone through. Thus the account must be open.


2. if it is indeed open then the landlord has received the money, albeit maybe into an account he doesn't want it to go to


3. the only other possibility is that the landlord closed the account such a long time ago that the account number has been recycled to someone else. Although this does occur the banks wait quite a long time before doing it. I can't believe in that case he has left it so long to notify the letting agent of his new details.


My view is the landlord has the money.

colsten

mt99 wrote: »

1. the old account cannot be 'closed' otherwise the payment would not have gone through. Thus the account must be open.

Not necessarily. Only this week, I managed to send money from Santander to a closed Tesco account (matter resolved now). So it appears that the existence of the receiving account isn't always checked.

Jmoo

I don't disagree with the above, but it's frustrating as according to the landlord Nationwide can clearly see it's an error and it hasn't reached an account, and that Barclays need to be pushed further. I will get her to push them further, she can take it to the ombudsman, but frankly whether it surfaces or not isn't really her concern. She has the numbers in writing of what was provided.

grumbler

Jmoo wrote: »

...
However, a week later, despite best efforts to contact both banks and cooperation from all parties, Barclays are refusing to return the money.

It's not clear whether Barclays was a sending or receiving bank, but regardless, it's not as simple as just 'return': Sent money to the wrong bank account?

I find it hard to believe given this account is said to be closed,

What I see 'given' and 'said' is "old defunct", not "closed". And even a closed account can get a new owner after a while.

Jmoo

Apologies, I'm trying to get up-to-speed on this too.

It was closed but as you say it possibly has been reopened by someone else. Although Natwest (receiver account) seem to think it's an error and it hasn't gone into their account. Barclays were the sender.

Nonetheless, we'll keep pushing, and if all fails it's down to the landlord to sort.

agrinnall

Unless there was an FPS glitch at the time of sending then I don't believe the receiving account was actually closed, as there's no doubt that Barclays and NatWest FPS will do a real time communication to check that before allowing the payment to proceed. So NatWest will need to explain why they think the payment hasn't gone to the account, but as said, it's the LLs issue to resolve.

xylophone

if all fails it's down to the landlord to sort.

It's down to the landlord in all events.



Your sister was given details (and has it in writing) of where to send the payment.

She made the payment from her Barclays account as instructed.

She has checked that she gave the details provided to Barclays ( ie that she herself had not made a keying in error) and that the payment was duly sent.

The landlord says that he gave her the wrong details.

It is up to him to sort it out.