Transfer to closed account

Mr_S_in_Easton

Quick bit of advice required from you banking experts out there in MSE-land. Recently a friend attempted to transfer a small amount of money, (itro £30) from her current account (bank A) to a current account I used to use, but which have since closed (bank . I have visited the local branch of bank B since the attempt, who are quite clear in their advice - they agree with me that the account is closed and advise that no transfer is possible to a closed account and that the funds do not appear in the records for the closed account.
On the other hand, my friend tells me that her bank A report that the the transaction took place successfully and indeed has emailed me a pdf from bank A which is headed Payment Confirmation.
So now we're in limbo - what should we do next?

Ballard

The funds should be returned to the remitter. When did this transaction take place and how was it sent?

Mr_S_in_Easton

The tranfer took place on 23 July, made by a transfer via mobile app.

Ballard

Okay so almost certainly a faster payment. I presume that you bank with a high street bank so this should have been returned almost instantly.

Did she input the details for the payment this time or use an existing instruction that she had previously used? If the former then perhaps she mistyped. If the latter then I think that she needs to tell her bank that the beneficiary account is closed and that they need to trace the money.

Mr_S_in_Easton

Thanks for reply - account details showing on the doc friend shared with me show correct account number and sort code for my closed account - I'll suggest she asks they trace the money.

Ballard

That’s the only option now. Good luck.

Nicholas

Mr_S_in_Easton wrote: »

The tranfer took place on 23 July, made by a transfer via mobile app.

That's interesting. I would have thought the money would have bounced back long before now.

Ed-1

How did you close the account? If you switched it, it will have been redirected to the account you switched to.

SuperAllyB

Ed-1 wrote: »

How did you close the account? If you switched it, it will have been redirected to the account you switched to.

I have no idea about the technical side of things but would have though that Bank B would have been able to see that in their records?

jonesMUFCforever

There are only 2 possibilities which have been discussed above -
1 The payment left Bank A and was bounced back to Bank A certainly within 24 hours if not instantly.
2 Payment left Bank A - Bank B transferred it to Bank C if the CASS was used to close the account.

There is a third scenario where the friend is telling porkies - ask them to show you the bank statement not payment confirmation.

badger09

How long ago did you close the account?


Is it possible the account has been recycled?
Caveat: I have no idea which banks do this, or their timescales

https://www.theguardian.com/money/2016/dec/17/recycled-bank-accounts-send-money-wrong-person


If you put the sort code and account details in here you'll know if it is still a live account. If it is, your friend can take it up with her bank

https://www.sortcodes.co.uk/


Finally, if its no longer a live account, could it be held in some sort of suspense account at the receiving bank?