Missing Bacs payment after current account switch

Goodvibrations

Hello, I recently did a current account switch from Santander to Monzo and was told any BACS payments made will be automatically redirected. I had a payment that was paid in last week and was confirmed by the sender to be paid in on Monday 26th however neither my new bank or old bank can see this payment. 

It was a payment from student finance for my maintenance loan and has been paid into the same account since 2019. 

I am unsure on what to do because neither banks can see the payment but student finance has said it is paid, they have received a payment failed notification. I have asked student finance to set up a trace but this can take 30 working days and I have many bills such as rent that need to come out before then. They also said if they can’t find the payment I would be fully liable. 

I have never been in this predicament and although the current account switch terms covered me for redirection of payments my payment still hasn’t been received by my new bank. My old bank told me they wouldn’t even be able to see the payment if it was paid as it would just automatically get redirected. I am at a loss with what to do as I’m going round in circles. I cannot wait 30 working days for a payment trace and I don’t know who is liable for this mistake. 

Any advice would be greatly appreciated, many thanks. 

Goodvibrations

Apologies I made a mistake student finance have not received a payment failed notification. 

eskbanker

Goodvibrations said:

I have never been in this predicament and although the current account switch terms covered me for redirection of payments my payment still hasn’t been received by my new bank. My old bank told me they wouldn’t even be able to see the payment if it was paid as it would just automatically get redirected. I am at a loss with what to do as I’m going round in circles. I cannot wait 30 working days for a payment trace and I don’t know who is liable for this mistake.

It's the responsibility of your new bank to sort this out, rather than the old one, who are correct to say that they won't see the payment as it's redirected centrally rather than via them - this redirection should be instant so shouldn't cause any delay.  Was the BACS payment process started on Monday or was it last week with a view to reaching your account by Monday?  Have you seen any evidence from the student finance company about when it was sent?

Goodvibrations

eskbanker said:

Goodvibrations said:

I have never been in this predicament and although the current account switch terms covered me for redirection of payments my payment still hasn’t been received by my new bank. My old bank told me they wouldn’t even be able to see the payment if it was paid as it would just automatically get redirected. I am at a loss with what to do as I’m going round in circles. I cannot wait 30 working days for a payment trace and I don’t know who is liable for this mistake.

It's the responsibility of your new bank to sort this out, rather than the old one, who are correct to say that they won't see the payment as it's redirected centrally rather than via them - this redirection should be instant so shouldn't cause any delay.  Was the BACS payment process started on Monday or was it last week with a view to reaching your account by Monday?  Have you seen any evidence from the student finance company about when it was sent?

Hello, thank you for your reply. The Bacs payment process was started last week to reach my account on Monday. On Monday the status on student finance website changed to paid. My new bank are saying they can’t see any payment at all, but student finance has provided me with the transaction IDs. I’m not sure how to hold my new bank liable as they keep telling me that they can’t see the payment. 

eskbanker

Goodvibrations said:
I’m not sure how to hold my new bank liable as they keep telling me that they can’t see the payment. 

Your new bank isn't necessarily liable as such (it could be a fault of the sender or the recipient or somewhere in between) but have the responsibility to investigate, rather than your old bank doing so.  All they can do is to use the tracking information provided by the student finance company to ascertain whether they saw the payment and where it went - the process is summarised at https://www.bacs.co.uk/Services/bacsschemes/bacsdirectcredit/Receivingpayments/Pages/HowToComplain.aspx

Thrugelmir

Goodvibrations said:

eskbanker said:

Goodvibrations said:

I have never been in this predicament and although the current account switch terms covered me for redirection of payments my payment still hasn’t been received by my new bank. My old bank told me they wouldn’t even be able to see the payment if it was paid as it would just automatically get redirected. I am at a loss with what to do as I’m going round in circles. I cannot wait 30 working days for a payment trace and I don’t know who is liable for this mistake.

It's the responsibility of your new bank to sort this out, rather than the old one, who are correct to say that they won't see the payment as it's redirected centrally rather than via them - this redirection should be instant so shouldn't cause any delay.  Was the BACS payment process started on Monday or was it last week with a view to reaching your account by Monday?  Have you seen any evidence from the student finance company about when it was sent?

On Monday the status on student finance website changed to paid.

Sounds as if the money is in transit then. 

Goodvibrations

Thrugelmir said:

Goodvibrations said:

eskbanker said:

Goodvibrations said:

I have never been in this predicament and although the current account switch terms covered me for redirection of payments my payment still hasn’t been received by my new bank. My old bank told me they wouldn’t even be able to see the payment if it was paid as it would just automatically get redirected. I am at a loss with what to do as I’m going round in circles. I cannot wait 30 working days for a payment trace and I don’t know who is liable for this mistake.

It's the responsibility of your new bank to sort this out, rather than the old one, who are correct to say that they won't see the payment as it's redirected centrally rather than via them - this redirection should be instant so shouldn't cause any delay.  Was the BACS payment process started on Monday or was it last week with a view to reaching your account by Monday?  Have you seen any evidence from the student finance company about when it was sent?

On Monday the status on student finance website changed to paid.

Sounds as if the money is in transit then. 

Usually redirections are instant it’s been 4 days and nothing has been received. 

flo22

Monzo is not a direct Bacs participant bank, I think they settle via Natwest. 

Was it a full current account switch that you did?

All Bacs payments have a transit as it is a 3 day cycle, if the file was submitted on Thurs 22nd for payment on Monday 26th and the it was a full current account switch then the scheme will have redirected it to the new account for Monday 26th, if Monzo rejected it back to the originator then they would see it on their reports.  If student finance say it has not been rejected then ask them to do a Bacs trace.

Thrugelmir

Goodvibrations said:

Thrugelmir said:

Goodvibrations said:

eskbanker said:

Goodvibrations said:

I have never been in this predicament and although the current account switch terms covered me for redirection of payments my payment still hasn’t been received by my new bank. My old bank told me they wouldn’t even be able to see the payment if it was paid as it would just automatically get redirected. I am at a loss with what to do as I’m going round in circles. I cannot wait 30 working days for a payment trace and I don’t know who is liable for this mistake.

It's the responsibility of your new bank to sort this out, rather than the old one, who are correct to say that they won't see the payment as it's redirected centrally rather than via them - this redirection should be instant so shouldn't cause any delay.  Was the BACS payment process started on Monday or was it last week with a view to reaching your account by Monday?  Have you seen any evidence from the student finance company about when it was sent?

On Monday the status on student finance website changed to paid.

Sounds as if the money is in transit then. 

Usually redirections are instant it’s been 4 days and nothing has been received. 

Be surprised if it's instant without some form of manual intervention. 

jackjones01

If you don’t receive the fund ask student finance to do a BACS trace 

eskbanker

flo22 said:

If student finance say it has not been rejected then ask them to do a Bacs trace.

jackjones01 said:

If you don’t receive the fund ask student finance to do a BACS trace 

From first post:

Goodvibrations said:

I have asked student finance to set up a trace