Problems with new account

TheBanker

libra10 said:

Thanks @xylophone you have summed up the situation perfectly. 

However, the bank from which the cheque was issued, insist and are absolutely adamant that this cheque has never been received by them. When I spoke to them on Friday, they said that if the BS sorted it out, they would clear the cheque the same afternoon.

Unfortunately, although I was on the phone for ages, I was unable to get through. 

@wmb194 I could certainly write a new cheque, but first I want to get hold of the first cheque. I would definitely be in trouble if both cheques were inadvertently presented. 

There are several parties involved.
1. The Building Society - who may have scanned the cheque for payment electronically, or passed the physical cheque to their clearing bank
2. The Building Society's clearing bank - who will have processed the cheque (either from the scan received, or by scanning it themselves)
3. Your bank, who will have received the scan.

The error could have occurred anywhere in the chain. It is possible that an incorrect account number has been used somewhere, it does happen.

The most effective solution would be to:
1. Issue a new cheque to the Building Society
2. Tell your bank the original one is lost and needs to be stopped

Problem solved - far easier than trying to establish what happened to the original cheque. 

Also ask the Building Society if you can send a Faster Payment instead - quicker and less likely to go wrong!

libra10

Thanks @TheBanker Last evening received a reply from the BS from which I had submitted a message on their contact from.

They are asking me to phone (and if no reply) leave name and number and this will keep my place in the queue.  If I get no further with this, will call at both BS and bank with all paperwork, including new cheque. and try to get someone to resolve the issue.

Will update when/if resolved.

Thanks for everyone's help. 

xylophone

I wouldn't bother chasing around after this. Just send a new cheque.

Problem solved - far easier than trying to establish what happened to the original cheque. 

Cancelling the original cheque and issuing a new one might "solve the problem" of getting funds credited to the OP's ISA but it does not in any way compensate her for the stress and inconvenience caused by the error that has been made.

In my opinion, it is certainly worth her going the extra mile to establish the chain of events and where responsibility for that error lies.

The BS has provided her with a copy of the original cheque - she has examined it and ascertained that it was correctly drawn.

The OP states

It's the BS saying that the reason the cheque was returned was due to the paying bank stating the account was closed. 

That the BS has been able to make this statement shows (one must assume) that it has documentary evidence from the bank (letter or cheque stamped a/c closed/return to drawer etc).

In the OP's place I would visit my bank taking with me the letter from the BS and requesting an explanation.

The OP could then sort out cancellation of the cheque.

At the very least she is owed an apology and a clear explanation - in my opinion some financial compensation for the trouble caused and  her wasted time is also due.


The question is, which institution is liable  for making the apology and paying any compensation - on the face of it is her own bank?

TheBanker

It's unlikely there will be a letter or stamped cheque. Cheque clearing is electronic now - the depositing bank retain the physical cheque and just upload a scanned image. So there's nothing for the drawing bank to stamp or return.

As I said the added complication is that the Building Society probably use another bank for their clearing, so another point in the chain where it could have gone wrong.

As for compensation, I agree the OP has experienced a degree of inconvenience, and if they can identify the source of the problem then they could request compensation. But it will be modest - I believe the FOS recommend £10 - £20 per hour. So it depends if the OP wants to invest further time in getting to the bottom of the problem, or just take the easy option which is to write another cheque (or use a Faster Payment etc). 

libra10

Thank you to everyone for your comments.

I have experienced a real runaround these past few days,  The BS where I want to deposit a decent sized cheque, given an account number, all being sorted, then (through no fault of my own) having the offer withdrawn.  Being made to feel that I have written a dodgy cheque, when I have never done such a thing in my life.

Trying to contact two financial companies over the telephone, one with difficult security questions, then incrediby long waits before anyone is available to answer.  Recorded messages taking your phone numbers, stating they will phone back, but rarely do.  Then being given incorrect information.

I will phone the BS tomorrow morning, and try to get this matter finally resolved.  Otherwise, I can write a new cheque, ask the bank to cancel the old cheque.  I do want to know who is to blame for this catalogue of errors and move on.  Luckily both companies have branches in my nearest town and I can call in.

Although I deserve compensation for all the hassle, I'm not really interested.  All I want is my ISA with a competitive rate of interest, and someone taking responsibility for errors which have occurred.

xylophone

As for compensation, I agree the OP has experienced a degree of inconvenience, and if they can identify the source of the problem then they could request compensation. But it will be modest - I believe the FOS recommend £10 - £20 per hour.

I go back to that old chestnut (but it's still sound!) "the principle of the thing".

A degree of inconvenience - have you read the OP's posts?

As for the amount of compensation, it is not only a question of the rate per hour although that certainly counts - the OP's time is at least as valuable as that of the customer service agents who have put her to such trouble.

But there is also the question of the stress and worry and also what might be felt by the OP to be an implication of incompetence or (at the very limit) even misconduct.

In the OP's place I would certainly ask for financial compensation - if she feels she does not need it I am sure that her chosen charity would be grateful for a donation.

libra10

@xylophone Thanks for your comments.  I agree that this issue has caused me to be stressed, made worse by incredibly long waiting times for phones to be answered.  Then no-one taking responsibilty for errors which have occcurred.

I will see how I get on tomorrow and update.

xylophone

I will see how I get on tomorrow and update.

Thank you.

I hope you will be able to bring matters to a satisfactory conclusion.

born_again

Simple way is to get B/S  to represent cheque. 
But as this was originally done in branch. Would it not be easier to call in, rather than try phoning.

Grumpy_chap

If this were me, I would simply stop the original cheque and present a new one.  Quick and easy.

Any effort expended chasing around after the original cheque is as much a choice given there is an easy and simple resolution.

Any compensation will be a token amount (unless the OP can demonstrate some loss suffered as a result of the mistake).  Not even clear who is actually at fault here and who, therefore, to make the complaint to.  Cannot go to the ombudsman until a deadlock letter has been received having exhausted the internal complaint processes.

What is the OP looking for and how much emotional energy is it worth expending on the matter?