Lloyds delay of transferred in moneys

janeskips2

I have noticed Lloyds routinely keeps large incoming transfers an extra day before they are available. These are not high risk or complex international transfers, just transfers from UK savings accounts but involve payments over 10,000.

To test this theory, I made a transfer each from two of my savings accounts, one where the nominated account was with Lloyds and the other Santander. The money arrived a day late to Lloyds. To rule out the sender being at fault, I then changed my nominated accounts around and sent another round of payments. Same result, Lloyds only showed as available a day after Santander. What is even worse is when this falls on a Friday, Lloyds then keeps it until Monday. The savings banks have no special relation with Santander, in fact one is Birmingham Midshires, part of Lloyds Group!

PeacefulWaters

Totally compliant with legislation.

I think BM still use Barclays as an intermediary for payments.

janeskips2

Legislation, what legislation? And why then is the application or interpretation different between Lloyds and Santander?

PeacefulWaters

janeskips2 wrote: »

Legislation, what legislation?

Payments Services Directive to give it the European name.

https://www.paymentsuk.org.uk/policy/european-developments/payment-services-directive

Basically your money, if sent on a weekday, doesn't need to hit the receiving account until the end of the following working day. In reality most payments tend to be instant.

And why then is the application or interpretation different between Lloyds and Santander?

Numerous possible reasons. Fraud checking being one of them.

janeskips2

Are you seriously telling me Lloyds needs this additional day to check for fraud each and every time I transfer money from my savings account? A savings account I hold under my own name with a UK bank like BM? A savings account I have saved as a payment recipient and have transferred to multiple times.

What are the other "numerous possible reasons"? To me it just seems they sit on my money an extra day to work the interest for their own benefit.

BoGoF

You have already been told that this is compliant with the Directive so instead of jumping down peoples throats who are trying to help you the simple solution if you're not happy is to move to another bank.

ceredigion

Your are being confused by different cut off times with different banks. Santander move to tomorrow at 8.30 pm Monday to Friday and mid day on Saturday. Lloyds change at midnight and ignore the weekends, so a transfer in on Saturday gets Mondays date.
Think about it and work it to your advantage.

PeacefulWaters

janeskips2 wrote: »

Are you seriously telling me Lloyds needs this additional day to check for fraud each and every time I transfer money from my savings account?

No. Just when they want to. It could be random. It could be specific to your short term activity and be something they learn to ignore quite quickly.

A savings account I hold under my own name with a UK bank like BM? A savings account I have saved as a payment recipient and have transferred to multiple times.

Maybe the third party provider of the Faster Payment (always used to be Barclays) is actually holding things up.

What are the other "numerous possible reasons"?

How long is a piece of string? Let's start the list with money laundering. Build in random checks that you've been unlucky enough to suffer more than once. And remember others involved in making the transfer could be making similar checks.

To me it just seems they sit on my money an extra day to work the interest for their own benefit.

Yes. That must be it. Genius paranoia.

janeskips2

The third party is not the source of the hold up, this has been confirmed in my test as explained.

You cited "numerous possible reasons" and further this with "how long is a piece of string?" but then go on to list... security measure which is highly unlikely in this scenario and "random check".

ceredigion has supplied a relevant answer which explains what has likely happened on a few of the occasions, but not all.

How is a bank not releasing paranoia exactly? Have you ever deposited a large cheque before?

System

BM Savings are part of Bank of Scotland anyway - not part of Lloyds Bank, so they are only part of the same wider group - not bank.

Use CHAPS for same day transfers.

PeacefulWaters

janeskips2 wrote: »

The third party is not the source of the hold up, this has been confirmed in my test as explained.

You cited "numerous possible reasons" and further this with "how long is a piece of string?" but then go on to list... security measure which is highly unlikely in this scenario and "random check".

ceredigion has supplied a relevant answer which explains what has likely happened on a few of the occasions, but not all.

How is a bank not releasing paranoia exactly? Have you ever deposited a large cheque before?

Ultimately, your problem seems to be that they are meeting their legal obligations to move your money from A to B within the regulatory timescale.

What do you intend to do about it?