Bank reversing payments- how does it work?

MrSlipper

We're  expecting some money to be returned, as the bank has accepted that the money was withdrawn without authority. However, it's taking a while. We're told that the bank requested the money from the receiving bank  (using an indemnity claim?) "before Christmas" and they've chased it up in January, then again in February. They seem to "diarise" it monthly, not exactly pro-active! We should hear by the end of this month. Whenever we've chased it, they apparently "can't" escalate the matter- it's already at senior management level. Really?? These are two High Street UK banks. I can't believe they won't chase the matter more frequently than 30 days. I strongly suspect the bank has messed up this request. Does anyone know how these things work (or should work). The matter is going to the FOS soon. It's been a shambles from the start. 

colsten

You should not need to know how these things work. Assuming you have raised a formal complaint already, you will be able to take your complaint to the FOS if you have no t had a satisfactory resolution within 8 weeks from raising the complaint. If not, you should consider raising a complaint now. Be aware though that the FOS have recently taken their time to respond, and they don't have any 8-week or other limit to get back to you in.

eskbanker

MrSlipper said:

the bank has accepted that the money was withdrawn without authority

[...]

Does anyone know how these things work (or should work).

If a transaction was unauthorised then your bank should refund you "by the end of the next business day, unless the bank has reasonable grounds to suspect that you acted fraudulently" - any internal issue they have with another bank shouldn't affect this:

https://www.fca.org.uk/consumers/unauthorised-payments-account

MrSlipper

Thanks for the replies. Yes, a complaint was raised, back in September. There is a fraud aspect to this, but by a third party. The Police are also involved, but they aren't seeking the return of the money, so we are attempting to do that ourselves. You would think that escalating the matter to the bank's CEO three months ago would achieve fast results. Far from it! The bank are suggesting their indemnity has been "ignored" by the receiving bank, which I doubt. 

MrSlipper

Oh, and another "complication" is that the account is now closed, as the account holder is deceased. The money was taken in the days following the account holder's death. 

eskbanker

What actually happened, i.e. in what way was money withdrawn without authority?

soulsaver

eskbanker said:

What actually happened, i.e. in what way was money withdrawn without authority?

POA misuse — MoneySavingExpert Forum

eskbanker

soulsaver said:

eskbanker said:

What actually happened, i.e. in what way was money withdrawn without authority?

POA misuse — MoneySavingExpert Forum

Ah - good spot!  There's obviously a significant back story to this one, so I'd suggest to OP that the original thread is continued, rather than starting a new one which conveys little of the complexity, that seems likely to be impacting the timescales involved, i.e. 'unauthorised payment reversal' somewhat underplays the situation....

Thrugelmir

MrSlipper said:

You would think that escalating the matter to the bank's CEO three months ago would achieve fast results. 

Why? Are you friends of the CEO and expect treatment that mere mortals don't receive.  Would need an army of CEO's if everyone wanted them to personally handle complaints. Sometimes expectations are simply plain daft and unrealistic. 

MrSlipper

Thrugelmir said:

MrSlipper said:

You would think that escalating the matter to the bank's CEO three months ago would achieve fast results. 

Why? Are you friends of the CEO and expect treatment that mere mortals don't receive.  Would need an army of CEO's if everyone wanted them to personally handle complaints. Sometimes expectations are simply plain daft and unrealistic. 

Before I return to my original thread on this subject, the contact with the CEO was in desperation. No, I don't know him...but the level of incompetence by his "Complaints Manager" was shocking, so I contacted him. Within days, we had a senior person on the case, promising a "full investigation" into the matter. This seems to have had little effect, frankly. We are now 9 months down the line from the first contact with the bank. 

MrSlipper

soulsaver said:

eskbanker said:

What actually happened, i.e. in what way was money withdrawn without authority?

POA misuse — MoneySavingExpert Forum

Yes, that's the one. I'm sorry, I should, of course, have continued that thread. I'll go and do so now.