Barclays refusing to reimburse money paid to wrong account

Nick_C

Jmoo wrote: »

... 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.

The key thing is Barclays are not at fault here. Your sister asked Barclays to send her money to a specific account. Barclays have done that. End of story for Barclays.

grumbler

Not an "end of story".
It is one of two banks involved that have to "take action within two days and investigate and report the outcome of their investigation within 20 working days".

System

grumbler wrote: »

Not an "end of story".
It is one of two banks involved that have to "take action within two days and investigate and report the outcome of their investigation within 20 working days".

There is nothing to investigate.
The transaction was carried out as instructed.

grumbler

Fine, all transactions to wrong accounts are "carried out as instructed".

What are the MSE news and the article about then?

JuicyJesus

grumbler wrote: »

Fine, all transactions to wrong accounts are "carried out as instructed".

What are the MSE news and the article about then?

MSE wanting clicks by portraying people who send their money to the wrong account as victims.


However in this case, it's completely irrelevant - the payment was correctly instructed by the customer and processed as such by the bank. It wasn't mistaken in any sense other than that the landlord is a dimwit.

eskbanker

Jmoo wrote: »

according to the landlord Nationwide can clearly see it's an error and it hasn't reached an account

Jmoo wrote: »

Although Natwest (receiver account) seem to think it's an error and it hasn't gone into their account. Barclays were the sender.

Hopefully this is just a typo but if Barclays sent money to Natwest, it's hardly surprising that it hasn't reached a Nationwide account!

agrinnall

eskbanker wrote: »

Hopefully this is just a typo but if Barclays sent money to Natwest, it's hardly surprising that it hasn't reached a Nationwide account!

Good spot! The OP does say NatWest in more than one post, but it's an inconsistency that would be good to have cleared up.

grumbler

JuicyJesus wrote: »

It wasn't mistaken in any sense other than that the landlord is a dimwit.

Yes, it was mistaken in this sense only - and this is sufficient for asking the sending bank to help with recovering the money. And the banks must help - according to the voluntary code they subscribed to.

If the 'dimwit' landlord closed this account and it was reassigned to a new person, he has no means of recovering this money without help of the sending party.

I have a feeling that you didn't read the article and believe that if the account was reassigned to a new account holder this person can rightfully keep and spend the money.

JuicyJesus

grumbler wrote: »

Yes, it was mistaken in this sense only - and this is sufficient for asking the sending bank to help with recovering the money. And the banks must help - according to the voluntary code they subscribed to.

Does this voluntary code apply to cases where the customer agrees they gave the correct instruction in good faith? It's my understanding that it only applies when the customer themselves has made a mistake.


The agreement also isn't a blanket indemnity that must be adhered to in all instances. A payment was processed into the account of the individual it was intended for, not a random stranger.

grumbler

JuicyJesus wrote: »

Does this voluntary code apply to cases where the customer agrees they gave the correct instruction in good faith? It's my understanding that it only applies when the customer themselves has made a mistake.

How mistakes happen

The top reasons

• The sending customer accidentally enters the wrong account number or sort code.
• The sending customer uses an old account number and sort code that is no longer correct.
• The sending customer selects the wrong payee from a list.
• The intended recipient provides the wrong account information to the sender.

...
If you have made a mistake when sending a payment you can expect:

1. In two days...
   When you notify your bank or building society that you have made an electronic payment to the wrong account, your bank will commence action on your behalf within a maximum of two working days.
2. Your bank investigates
   Where your bank finds clear evidence of a genuine mistake, they will contact the receiving bank on your behalf with a request to prevent the money being mistakenly spent. As long as the recipient does not dispute your claim, you will subsequently receive a refund of the protected funds within 20 working days from when you notified your bank.
3. The receiving customer is contacted
   In cases where the circumstances of the claim are not clear cut, your bank will still contact the receiving bank on your behalf. The recipient will be contacted by their bank to ask for consent to debit their account. No funds would be removed without the consent of the receiving customer.
4. Response within 20 days
   If it is not possible to reclaim a payment you have sent in error – for instance if the recipient disputes its return – you will be notified of the outcome within 20 working days from the point of your enquiry and in many cases much sooner.
5. Information about options
   If funds cannot be recovered through the standard central process your bank will give you clear and accurate information on the options you have available – such as court action against the recipient.
6. Your legal rights
   The industry procedures do not change the legal rights and responsibilities of you, your bank or the recipient of the funds. Anyone that intentionally spends money that does not belong to them is committing a crime, which can be reported to the police.

http://www.payyourway.org.uk/consumer-advice/have-you-paid-wrong-account/payments-error-plain-text-guide

A payment was processed into the account of the individual it was intended for, not a random stranger.

What we know is that the "individual it was intended for" closed this account.