Payment sent to closed account

Daffodily

Back in April I did an online bank transfer of £100 to my student grandson. Unfortunately I wasn't aware that he had just closed that account - having been induced by another bank. I notified my bank (HSBC) at once but have been unable to recover the money. I was initially told the payment would "bounce back". It didn't and I was then told a trace would be put on the payment and it might take some time. Since then both HSBC and the receiving bank (Nat West) are each saying it's up to the other to sort it. Surely the payment must be somewhere! Glad of any ideas please.

pochisoldi

Daffodily wrote: »

Back in April I did an online bank transfer of £100 to my student grandson. Unfortunately I wasn't aware that he had just closed that account - having been induced by another bank. I notified my bank (HSBC) at once but have been unable to recover the money. I was initially told the payment would "bounce back". It didn't and I was then told a trace would be put on the payment and it might take some time. Since then both HSBC and the receiving bank (Nat West) are each saying it's up to the other to sort it. Surely the payment must be somewhere! Glad of any ideas please.

Get your grandson to chase their current bank.
If he used the "full switching service", payments destined for the old account should be redirected to the new one for 3 years.

See
https://www.bacs.co.uk/services/accountswitchingservice/pages/accountswitchingservice.aspx

Assuming he used the switching service:
If your grandson's new bank refuses to do anything, he should raise a complaint, and if they still refuse, when he gets the deadlock letter, go to the ombudsman.

If he didn't use the switching service, he should complain to the old bank.
If they refuse to send the money back or forward it on, then he should raise a formal complaint with them.

As an aside, when I've had a problem with two organisations speaking to each other I usually complain to each one at the same time in writing and I explicitly give each organisation permission to share any personal data to resolve the issue. Something like "For the avoidance of doubt I explicitly give X and Y permission to share whatever data is required between themselves in order to resolve this issue" avoids any BS "data protection" excuses.

PochiSoldi

18cc

Did your grandson simply close his old account and then independently open a new account or did he use the switching service to switch bank accounts

if the latter the payment would have been automatically forwarded onto his new account

agrinnall

I'm going to assume that CASS wasn't used, so what you were initially told by HSBC is more or less correct, the payment should either have been bounced back to your account or it should go into a suspense account at NatWest. It is the responsibility of HSBC to trace and recover the money, if they fail to do so you should make a formal complaint and if necessary take it to the FOS.

Daffodily

Many thanks pochisoldi and 18cc. My grandson did not use switching service. When he enquired of Nat West they sent him an e mail basically saying "there were no credit payments received for your closed account". I will do as you suggest pochisoldi and write to both banks. Thanks again.

robatwork

https://www.hsbc.co.uk/1/2/contact-and-support/feedback-and-complaints

Complaints Form

agrinnall

Daffodily wrote: »

I will do as you suggest pochisoldi and write to both banks.

You can't write to NatWest as you're not the owner of the closed account (well, you can, but they won't answer). As I've already said, it is the responsibility of HSBC to resolve this, but feel free to ignore me and carry on with what you seem to think is the right thing to do.

18cc

agree with agrinall

jonesMUFCforever

I wonder if said grandson left one bank with a debt which was closed / written off to a collections account.
The £100 received could possibly gone towards that?

Thrugelmir

jonesMUFCforever wrote: »

I wonder if said grandson left one bank with a debt which was closed / written off to a collections account.
The £100 received could possibly gone towards that?

My thought as well.

lhamdaoui

I have had a payment sent from an international account in the UAE unfortunately to my closed account with Natwest. This was back in February. I have called Natwest numerous times trying to find out what to do. They said the bank in UAE will need to recall the funds. The bank in UAE (Mashreq) say they received an appended Swift confirmation from Lloyds bank confirming that the funds have been credited to the beneficiaries (My) Account on the 14 April 2020.  Has Natwest anything to do with Lloyds? I'm confused as I have never held an account with Lloyds. The bank in UAE said that i will have to resolve this from my end.