Help with banking indemnitys?

Barry1989

Hi people new here and looking for some advice on a very complex issue.

So I was with bank a had various direct debits set up including PayPal credit cards etc, no problems all direct debits paid.

I changed to a different bank account bank b and had money in my PayPal account from sales I sell dj equipment very expensive high end stuff.

One day I withdraw money from my paypal account to bank b who froze my account because of the value of this withdrawal.... (£18400) they asked me the origin of these funds I explained sales from eBay.

After some months bank b told me they had received a banking indemnity from bank a because all the direct debits on that account had went through but never debited my account apparently over the time this was to the tune of £52000.

I complained to bank b and they told me there is is nothing they can do and that they are obliged to refund the said money to bank a. After many more months or arguing I done a subject access request and requested the said indemnity this was back in January and they would not provide this but did provide me with history of the account which shows money only leaving my account in March 2018 and been returned to bank a some what 9 month after they apparently received the banking indemnity.

Bank a are not chasing me for any money nor does my account reflect I owe them any money on my internet banking page.

My complaint is currently with FOS but I am looking for someone who works in the banking sector to explain banking indemnitys and when they are used ?

Any help is much Appreciated and sorry for the
Very confusing post

jonesMUFCforever

Was this a business or personal bank account?
Wasit a business Paypal account?

OP you will need to find proof that you legitimately purchased the gear then sold them on.... take it from there.

As for the indemnities are you saying that you did not sell £52k worth of goods to somebody and that nobody has complained to you about either the quality of the goods or their authenticity?

Barry1989

Hi thanks for replying

They are all personal accounts, and no I never sold £52000 worth of goods bank a are saying my direct debits all the time I have had the account where paid but never processed on my actual account technically saying I have never paid a direct debit although they have paid them all.

I just don’t understand the banking indemnity part at what point can a bank do this to another bank? The payment did not come from bank a to bank b it came from PayPal to my bank b current account I am really confused with it!

Thanks for replying is there any other information you can give me to try and help me

Xbigman

Get your bank statements from bank A and check to see if any direct debits were not taken off the balance. This will tell you in 5 minutes if bank A are correct. I must say that if £52k of direct debits had not been taken you should have noticed anyway.
You also need to realise that running a business through a personal bank account is possibly a breach of the terms and conditions of the account. This is not going to help your case in any way.
Finally, what does your accountant say? Even if you don't have a professional accountant someone must have done your accounts/tax return. Ask them why they never spotted a £52k discrepancy.



Darren

Xbigman

Get your bank statements from bank A and check to see if any direct debits were not taken off the balance. This will tell you in 5 minutes if bank A are correct. I must say that if £52k of direct debits had not been taken you should have noticed anyway.
You also need to realise that running a business through a personal bank account is possibly a breach of the terms and conditions of the account. This is not going to help your case in any way.
Finally, what does your accountant say? Even if you don't have a professional accountant someone must have done your accounts/tax return. Ask them why they never spotted a £52k discrepancy.



Darren

Barry1989

Bank a reflect none of the direct debit.

I don’t have an accountant I don’t do it for business I simply buy stuff from eBay gumtree etc that I know I will make money on and then re-sell it,
I understand this is an odd situation but I just can’t understand the banking indemnity situation where as bank a have instructed bank b to pay the balance of my account over to them without and court order. The money in bank b did not come directly from bank a either so it was not an incorrect payment

My problem is bank a if they are claiming I owe this money would surely need to default me etc none of this has taken place

noh

Barry1989 wrote: »

............

I don’t have an accountant I don’t do it for business I simply buy stuff from eBay gumtree etc that I know I will make money on and then re-sell it,.........

You are trading for profit. You are running a business. There is no other way to describe it.
I assume you do your own accounting and tax returns?

Zanderman

Barry1989 wrote: »

I don’t do it for business I simply buy stuff from eBay gumtree etc that I know I will make money on and then re-sell it,

Er... that is a business.

As for the wider issues - it's a very very strange story you're telling us.

User Hasseld1 is so fascinated that they've registered overnight merely to thank you for your posts!

eskbanker

Zanderman wrote: »

User Hasseld1 is so fascinated that they've registered overnight merely to thank you for your posts!

Probably makes a change from 'bidding' for high-end DJ equipment....

Barry1989

Whatever I am doing in regards to business is irrelevant here all I am looking to find out is about banking indemnitys...

Bank a won’t speak to me -
Bank b again won’t speak to me won’t tell me anything and my complaint is currently with the FOS.

The reason I need to find out about a banking indemnity is so I know what I am talking about when speaking to the FOS,

My understanding of a banking indemnity is when a payment is made from one account to another but there is a error for example and the paying bank has enter incorrect details?

Is there anybody who can give me guidance

flo22

Barry1989 wrote: »

The reason I need to find out about a banking indemnity is so I know what I am talking about when speaking to the FOS,

My understanding of a banking indemnity is when a payment is made from one account to another but there is a error for example and the paying bank has enter incorrect details?

Is there anybody who can give me guidance

Unclear as to what you mean by banking indemnity. If you mean Direct Debit Indemnity then this is the Direct Debit Guarantee:

• The Guarantee is offered by all banks and building societies that accept instructions to pay Direct Debits
• If there are any changes to the amount, date or frequency of your Direct Debit the organisation will notify you (normally 10 working days) in advance of your account being debited or as otherwise agreed. If you request the organisation to collect a payment, confirmation of the amount and date will be given to you at the time of the request
• If an error is made in the payment of your Direct Debit, by the organisation or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society
• If you receive a refund you are not entitled to, you must pay it back when the organisation asks you to
• You can cancel a Direct Debit at any time by simply contacting your bank or building society. Written confirmation may be required. Please also notify the organisation.

I'm assuming you wish to understand the bold part. Was there a Direct Debit from Paypal claimed in error on your account? A Direct Debit Indemnity is raised for the Service User to accept or reject, so in this case Paypal. What transactions are showing on your Paypal account and do they match transactions to your bank?