Student Loan paid into someone else’s account

in Loans
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FishoutofwaterFishoutofwater Forumite
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Asking for my friend who has a son just started at Uni in Sept and does not have an account here.

The Student Loan did not go into his account and so he chased it up in September. The Student finance team said there had been an incorrect digit on the form and so it’s computer automated system guessed at an account number and paid the money into that account.

It was explained to the Student Loan call handler that the student had not got the money and needed it for food and rent.

They said it would take 30 days to investigate but that the money had gone into someone else’s account, they could see who but would not tell my friend the account number or any other details.

The 30 days went by and despite many phone calls to student finance there is no progress. There have been promises of people looking into it, escalation to the highest level etc and calls back promised but not delivered. They still say that the money can’t be claimed back from the incorrect account and that my friends son is still responsible to pay it back and he is also still out of pocket.

Any ideas on what can happen next and quickly to get him the money? All the stress is taking a toll on my friend who is already unwell anyway.

Replies

  • DCFC79DCFC79 Forumite
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    You tried asking twitter if any update ?

    You tried a complaint letter although this needs to be from your son.
  • lees80lees80 Forumite
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    Asking for my friend who has a son just started at Uni in Sept and does not have an account here.

    The Student Loan did not go into his account and so he chased it up in September. The Student finance team said there had been an incorrect digit on the form and so it’s computer automated system guessed at an account number and paid the money into that account.

    It was explained to the Student Loan call handler that the student had not got the money and needed it for food and rent.

    They said it would take 30 days to investigate but that the money had gone into someone else’s account, they could see who but would not tell my friend the account number or any other details.

    The 30 days went by and despite many phone calls to student finance there is no progress. There have been promises of people looking into it, escalation to the highest level etc and calls back promised but not delivered. They still say that the money can’t be claimed back from the incorrect account and that my friends son is still responsible to pay it back and he is also still out of pocket.

    Any ideas on what can happen next and quickly to get him the money? All the stress is taking a toll on my friend who is already unwell anyway.

    Whoever said that clearly doesn't know their !!!! from the elbow. Bank systems are not setup to 'guess'. They are setup to process the payment into the account details that have been entered into it. You've either been misinformed or someone is pulling a fast one.

    Copies of the form will easily confirm or deny the existence of an incorrect digit.
  • boo_starboo_star Forumite
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    lees80 wrote: »
    Whoever said that clearly doesn't know their !!!! from the elbow. Bank systems are not setup to 'guess'. They are setup to process the payment into the account details that have been entered into it. You've either been misinformed or someone is pulling a fast one.

    Copies of the form will easily confirm or deny the existence of an incorrect digit.

    I read that as the Student Finance system "guessing" the correct number not that banks.

    However it still seems like a ridiculous explanation for the issue, and I'm having trouble buying it.
  • lees80lees80 Forumite
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    boo_star wrote: »
    I read that as the Student Finance system "guessing" the correct number not that banks.

    However it still seems like a ridiculous explanation for the issue, and I'm having trouble buying it.

    Ah, with you. Yes, either scenario it sounds like a very poor explanation. Wreaks of 'oh crap' someone's realised they've made a mistake and are trying to cover it up.
  • edited 15 November 2019 at 1:40PM
    lees80lees80 Forumite
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    edited 15 November 2019 at 1:40PM
    OP - your friends son needs to ask for a copy of the form they are referring to. (BTW, the Student Finance team have acted correctly in refusing to reveal personal info about anyone other than your friends son, to him)

    Ask the Student Finance team to confirm the account number they made payment to is the one on the form. (Note, this is not the same as asking for the actual account number they have paid into, no personal details are being requested).

    If yes, your friends son has filled the form in incorrectly and they have simply entered the data as they were given it.

    If no, the Student Finance team have a lot more explaining to do and would find it far more difficult to wash their hands of the error.

    Simples - at least to start with.
  • The student finance company cannot know or see whose account the money was paid into. They will have only an account number and sort code.
    The only way you could be liable to repay this would be if they had proof you had deliberately supplied the wrong account details of somebody else and had an arrangement with this person to withdraw the cash and give it to you as part of a pre-planned fraud.
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