Loan Rescinded (under indemnity rules)????

TimArundel

My bank has just told me that the money that I deposited which came from my other bank account with a different bank, has been rescinded under indemnity rules, they wont say or give any details, only that the orginating bank is saying to my current bank which had the money, that they suspect the loan was obtained fraudulently, its just crazy.

What are indemnity rules, and where can I find more details on them, also does the bank that made the transfer to the other bank have the right to rescind it?

Thanks

[Deleted User]

Did you obtain a loan fraudulently and then try and move the money to stop them coming after you?

fwor

Assuming you didn't misrepresent anything in your loan application, it's probably just a misunderstanding, but the fact is that banks will cooperate with one another in cases of suspected fraud, and there's nothing you can do to stop that happening.

Questioning the rules won't help - all you can do is wait until they have investigated the matter.

However, it won't harm to speak to the original bank in a calm manner and ask if there is anything you can do - any information that you can provide - that will help them sort the matter out quickly.

Sandtree

What loan?

Maybe it would be easier to start at the beginning of the story?

TimArundel

Ok, I had both a personal and business account with Barclays, which received a £50,000 bounce back loan, as has happened before corona virus, The turnover of the company is £500 - £550K, my renumeration is just under £75'000, so when I made the bounce back loan application, I told Barclays that it would be for my salary (after Tax and NI).

That was all fine, loan approved, money went into business account, I then a few months later, paid my salary, last week, the card stopped working, went into a branch and Barclays told me they were closing the account, however would I like the money transferred to another bank, which I did. (I want to make it clear, that was at the suggestion of Barclays, when I went into the branch, not me trying to move all the money out of my personal account).

The staff at the branch happily arranged a payment instruction to my other bank and the entire remaining amount (41k) was traansferred.

A few days pass and then Santander received "a notification" from Barclays stating something about an unpaid loan/credit or something along those lines (which I found out as the woman in the recieving bank was reading out the notes on the account out loud to me).

The receiving bank (Santander) has now frozen the account, and yesterday the amount just dissapeared from the account, (it still shows as a balance, it is just the money isn't there) when I inquired the branch staff, said it had been withdrawn from the account, whilst it is under investigation.

I went into the branch with my ID again and a letter explaining how the money is mine from my company and my renumeration, that is all that Santander have asked for?

When Santander phone, they say that the transaction has been notified from Barclays as suspected fraudlent activity, that is why they have removed the funds. I asked what are Barclays rights to take back money, and the bank said that all banks have an "indemnity" with each other, which means they could get the money back. I have no idea what she is talking about.

I know there is a 'right of set off' (the right to take money paid into your account to cover missed payments on other accounts you have with them) but my understanding was, that procedure can only be used within that bank itself, not from one bank to another.

I just want to know how long can Santander withhold the money from my account and is there anything else I can do?

Thanks

[Deleted User]

Theyll hold it until they've completed their investigations.  Nothing you can do to influence it.

kaMelo

Was there not a condition that the business account which received the BBL had to remain open and closure of the business account would result in a requirement to repay the BBL.
Is the business bank account still open?

sparklep0ny

So exactly the same as this thread... https://forums.moneysavingexpert.com/discussion/6265549/frozen-bank-account

Something doesn't add up...

k3lvc

sparklep0ny said:

So exactly the same as this thread... https://forums.moneysavingexpert.com/discussion/6265549/frozen-bank-account

Something doesn't add up...

Amazing that two individuals can do exactly the same thing with the same banks and have the same phrases highlighted in their posts

sparklep0ny

k3lvc said:

sparklep0ny said:

So exactly the same as this thread... https://forums.moneysavingexpert.com/discussion/6265549/frozen-bank-account

Something doesn't add up...

Amazing that two individuals can do exactly the same thing with the same banks and have the same phrases highlighted in their posts

Indeed it is.