Managing agent lost fund money

Skag

We decide to change our MA due to incompetency. By accident, we found out that they paid twice an invoice for our block of 3k to a sub-contractor to do a job.

Now the MA claims that this was due to a banking (system) error and that they find it extremely difficult to request the money back from the sub-contractor.

What can we do? Any legal fallbacks?

HampshireH

If it was a banking error then the bank would put it right .  If a double payment accidentally sent out the bank would reclaim the funds. The statement would show a double payment on the same day.

The MA is probably lying. How many in your block? I would put a letter in writing formally requesting funds are returned by the MA to rectify their error (whether they recoup it from the contractor isn't your problem). 

You could contact the contractor but they are unlikely to speak to you are you aren't the client.

Small claims against the MA may be next step once you have the paper trial behind you

user1977

Skag said:

Now the MA claims that this was due to a banking (system) error and that they find it extremely difficult to request the money back from the sub-contractor.

What exactly do they mean by that? They're entitled to get the money back. And if they're having trouble doing so, it sounds like that ought to be their problem rather than yours.

Grumpy_chap

How long ago was the double payment remitted?

Skag

Due to an error the banking system paid the contractor twice.  As the fault was between the systems we use and the banking systems, only one transaction is currently showing in your property.

This is what the MA said by the way.

Skag

Grumpy_chap said:

How long ago was the double payment remitted?

About 8 months or so.

Skag

HampshireH said:

If it was a banking error then the bank would put it right .  If a double payment accidentally sent out the bank would reclaim the funds. The statement would show a double payment on the same day.

Agreed. I'll request some proof then.

The MA is probably lying. How many in your block? I would put a letter in writing formally requesting funds are returned by the MA to rectify their error (whether they recoup it from the contractor isn't your problem).

20 flats.

You could contact the contractor but they are unlikely to speak to you are you aren't the client.
That's true, plus it's not our job to do that.

Small claims against the MA may be next step once you have the paper trial behind you
True, thanks.

user1977

Skag said:

Due to an error the banking system paid the contractor twice.  As the fault was between the systems we use and the banking systems, only one transaction is currently showing in your property.

If only one transaction is showing against your property's account, it doesn't sound like the double payment is even your problem.

Skag

user1977 said:

Skag said:

Due to an error the banking system paid the contractor twice.  As the fault was between the systems we use and the banking systems, only one transaction is currently showing in your property.

If only one transaction is showing against your property's account, it doesn't sound like the double payment is even your problem.

Exactly. They have their wires crossed. Main reason why we changed them!

eddddy

Skag said:

Due to an error the banking system paid the contractor twice.  As the fault was between the systems we use and the banking systems, only one transaction is currently showing in your property.

This is what the MA said by the way.

So what's the problem from your perspective?

If only one transaction (of £3k) is showing against your property, everything should be ok.

It sounds like they're mentioning that they had some problems with their back-end systems, but they don't affect you.

Put another way:  They've paid £6k - but they've only charged you £3k.


Or is that the MA is wanting you to pay another £3k, and/or they're returning your 'unspent funds' and it's £3k short?

Or have I completely misunderstood?

Gentoo365

Is there a Director (or equivalent) of the residents company? 
Someone should arrange a meeting with the management company to get full details. Money doesn't just go missing. Either it's all an admin/records issue and actually there is no missing money, OR the bank has it, OR the management company has it OR the contactor has it.
If there is money 'in the wrong place' then it should not be too difficult to correct it. 
Worse case I guess is if the contactor bead paid twice due to an error in the software the management company uses (i.e. not the banks fault). 
If that is the case then surely the solution is to ask for the contactor to pay the money back. If they refuse then consider action (which could be against the contractor, the management company, the software provider or the bank, depending on the situation).

You would hope that the contactor is known to the managing agent and therefore won't want to do a runner or risk losing goodwill and future work for the sake of £3k. 

I would guess that this can be resolved by a few phone calls and follow up emails/letters for evidence in case it turns out legal action is needed.