Credits to Deceased Accounts

Pasalan

I would really appreciate some help/guidance. My father passed away suddenly in February. We closed his bank account swiftly with all funds transferred to my Mum.  He had purchased flights that then needed to be refunded. The airline did this but the bank claim they rejected it as the account was closed. We now have no idea where this money is. The airline claim they don't have it and the bank say the same. Really don't know where to turn to now or what to do next. Does anyone know what should happen in this circumstance please? 

Bobziz

Have the bank provided evidence that they rejected it ?  

Pasalan

We raised a formal complaint to request they investigate where the money is. They have rejected the complaint saying as the account was closed it was returned direct to the airline. 

Brynsam

At the risk of stating the obvious, you and your mum are obviously going to be in a state of heightened emotion when your father died so recently. Factor in the fact that many things are taking longer to accomplish/firms are having to operate in ways which were totally alien pre-Covid19, and you have a perfect storm of frustration and upset just waiting round the corner. 

As the post above suggests, go back to the bank and ask them to provide written evidence (by e-mail is fine) that funds were returned because the account was closed, and then forward this to the airline. Just one tiny point: if you asked for the flights to be refunded, did you confirm the account to which the refund should be paid? If you knew your father's account had already been closed (which you confirm you did 'swiftly'), is it just possible you gave them another account to which funds should be sent? Bereavement and grief can play tricks with the memory.

Pasalan

Thank you for taking the time to reply.  Yes we have raised with both airline and bank and both are claiming the other have the money. At the onset the airline said the money had to be refunded to the account from which it was paid even when we told them it was closed. The bank had the account details to which funds needed to be forwarded. We have a written response from the bank stating they would have rejected any credit. We are left in limbo as have followed the complaint/investigation for both companies and they both refute they have the funds. I don't know how to escalate it further? 

xylophone

The banks involved can trace the payment if they take the appropriate steps.
You have a final response to your complaint -  try the ombudsman.
https://www.financial-ombudsman.org.uk/

Dox

If you have had 'final replies' from the two organisations, your next stop is the Financial Services Ombudsman - but you are in for a hugely long wait before they are even going to acknowledge your application, let alone do anything. Link: https://www.financial-ombudsman.org.uk/contact-us

I am not normally a fan of the 'going to the press' option, but possibly someone like Tony Hetherington could help. I'd be tempted to e-mail him on tony.hetherington@ mailonsunday.co.uk and copy if both the bank and the airline on your e-mail. The fact that both organisations can see you've raised the matter with him might just be enough to stir them into action.

You really shouldn't have this sort of carry on and I'm sorry there is no magic wand to sort it out. 

Dandylion

I seem to remember experiencing something similar, and it did get resolved in the end. I suspect the reason both bank and airline say they haven't got the money is because they can't see it anywhere; it's likely to be sitting in some kind of limbo until it can be identified. The airline and bank should know this, and could probably make a bit more effort to find it - but it may be the current situation that's delayed things. When did the airline send the money? 

Ganga

How much is the refund from the airline ? is it worth all the time,effort and frustration you are putting in to get it

Pasalan

Money was 'refunded' middle of February, it's over £500 so for us not an amount that can be written off.