Missing faster payment

iqy007

Hi,

Not sure if this is the correct area to post
I used a currency converter to convert dollars to pounds and made a payment in GBP via faster payment to my HSBC account

The currency converter account has Barclays (very reliable many of us using it for years without hitch), they used faster payment on July 31st
I have provided the senders name, account, sort code, payment reference and faster payment ID (provided y Barclays) to HSBC, yesterday HSBC told me that they are able to locate the transfer and it should be credited into my account soon
Today they say it was a mistake and they are not able trace and the time scale is around 20 working days

I have been in touch with the sender they contacted Barclays who then tried to trace and say that their faster payment response confirms that money is credited to beneficiary account, they say that they have tried to contact HSBC but there is no response

Can someone tell me how to proceed looks like HSBC are trying to sit on my money and earn interest

I have complained to Financial ombudsman which will take another 4 weeks
has anyone faced this kind of problem? what are the chances that I will be able to recover my money and how long it will take

anselld

So you only have the senders word that the payment has been sent and the response from Barclays is also hearsay via the sender.

I would suggest that you need to obtain some more concrete proof that the funds have been sent. Then complain formally to HSBC (FOS will not accept your complaint until you have exhausted HSBC internal procedure)

PeacefulWaters

It's for the sender's bank to trace the payment on the instructions of the sender.

Barclays should provide the sender with the account details the funds have been sent to. Do they match your account?

iqy007

anselld wrote: »

So you only have the senders word that the payment has been sent and the response from Barclays is also hearsay via the sender.

I would suggest that you need to obtain some more concrete proof that the funds have been sent. Then complain formally to HSBC (FOS will not accept your complaint until you have exhausted HSBC internal procedure)

PeacefulWaters wrote: »

It's for the sender's bank to trace the payment on the instructions of the sender.

Barclays should provide the sender with the account details the funds have been sent to. Do they match your account?

Both the sender and Barclays have provided all the details, like senders account name, number.sort code and even faster payment ID (very long number) - is there anything else I need as proof of transfer?

as per Barclays they can confirm that faster payment response shows no error, Barclays said that they tried to reach HSBC but there was no response

HSBC have been changing stories every time I call them, yesterday they told me the the faster payment is located and today they said it was a mistake, funds are not traced, before that they asked me question about source of funds i explained it to them tomorrow I plan to visit the branches of HSBC and Barclays

At this point I have no reason to believe sender is lying just to give background
I myself and many of my colleagues have been using the sender for years, we get allocated company shares in USD and sell them, bring those to our dollar accounts and then send those to currency converter, then transfer back GBPs to our UK accounts

iqy007

update on this
I got my funds on 16th and few days later a letter from HSBC can confirming that funds were received on 31st, because of that I have to pay £460 as interest + penalty

Meanwhile HSBC have not credited another set of funds sent via CHIPS wire transfer, I do have MT103 so fighting again for those funds

As soon as funds get cleared I will close my account with HSBC

Wondering if this is usual thing by HSBC by sitting on funds and earn interest while their customers suffer, if they do this to pensioners and retired people they might not even fight

jonesMUFCforever

iqy007 wrote: »

update on this


Wondering if this is usual thing by HSBC by sitting on funds and earn interest while their customers suffer, if they do this to pensioners and retired people they might not even fight

Absolute rubbish I'm afraid.

robatwork

iqy007 wrote: »

I got my funds on 16th and few days later a letter from HSBC can confirming that funds were received on 31st, because of that I have to pay £460 as interest + penalty

I have no idea what this means. Can you explain this in more detail?

Ballard

iqy007 wrote: »

update on this
I got my funds on 16th and few days later a letter from HSBC can confirming that funds were received on 31st, because of that I have to pay £460 as interest + penalty

Meanwhile HSBC have not credited another set of funds sent via CHIPS wire transfer, I do have MT103 so fighting again for those funds

As soon as funds get cleared I will close my account with HSBC

Wondering if this is usual thing by HSBC by sitting on funds and earn interest while their customers suffer, if they do this to pensioners and retired people they might not even fight

HSBC do not delay funds like this just to make money. There are strict rules about treating customers fairly and they'd be liable to fines should they not adhere.

To put into context $50,000 would earn $35 for three weeks. £50,000 £7 and €50,000 would cost them €11 if these amounts were lent in the market. Hardly worth risking a fine and compensation.

That said you should definitely complain about the delay in both cases. Presuming there were no money laundering questions then the pounds should have arrived within a day. The dollars could take longer but two or three days should really be the absolute maximum (I actually don't see why it shouldn't arrive the day following the payment day) if the payment was formatted correctly.

iqy007

robatwork wrote: »

I have no idea what this means. Can you explain this in more detail?

I transferred funds on Jul 31 via faster payments from Barclays (sterling current account) into my HSBC sterling account, funds did not show into HSBC until 16th August, I got a letter from HSBC on 17th (dated 14th) stating:
We can confirm that above faster payment has been credited to your account on 31 July 2017

No apology or compensation, when I called them up they say it is under investigation and will take up to 8 weeks to determine what went wrong

iqy007

Ballard wrote: »

HSBC do not delay funds like this just to make money. There are strict rules about treating customers fairly and they'd be liable to fines should they not adhere.

To put into context $50,000 would earn $35 for three weeks. £50,000 £7 and €50,000 would cost them €11 if these amounts were lent in the market. Hardly worth risking a fine and compensation.

That said you should definitely complain about the delay in both cases. Presuming there were no money laundering questions then the pounds should have arrived within a day. The dollars could take longer but two or three days should really be the absolute maximum (I actually don't see why it shouldn't arrive the day following the payment day) if the payment was formatted correctly.

I have account with HSBC for 16 years, have been using wire transfer since 2005 from same account, and currency exchange since 2013

They have acknowledged delay in sterling transfer and are investigating why this happened, meanwhile for USD wire transfer they not only failed to credit funds, they also deactivated my currency account today, I asked them to activate, they told me it'll take 24 hours

Looks like HSBC have either got huge problem inside or they are counting on people not complaining too much, if they do this with say 10,000 customers then they can make lot of money in interest, something similar to people not fighting bogus parking tickets and they can hide behind anti money laundering cover to avoid paying fines

Ballard

I'm sorry but no bank would deliberately withhold cash in order to earn interest on the funds. The amount of interest that they'd earn is minimal but on the other hand they risk fines, compensation, loss of reputation and ultimately loss of the customer. It would make absolutely no business sense.