Monzo have taken my money following advice from HSBC

GillsMan7

About a month ago, someone who owed me money transferred £500 into my account. Since then it sounds like they have contacted their bank, HSBC to say that they transferred this to me in error and entered the wrong details.

Yesterday, I had a message from Monzo saying that HSBC had contacted them about the payment saying that it had been paid in error and they've taken the money from my account to make sure I don't accidentally spend it. They've left me with £0 in my account!!

They've said I can tell them that this is a mistake but said that by law the other bank can ask Monzo for my name and address so their customer can follow up the claim. I've told them that the money is mine and I was expecting it and they've now asked me to explain in full why I was expecting the payment and asking for screenshots. Here are my questions:

1. I do not want the person who sent me the money getting my address. Are Monzo right that they can share my name and address?
2. There are some embarassing reasons why the money was owed to me which I'd really rather not get into with my bank - do I really need to share my private financial dealings with them?
3. This was a verbal agreement so I don't have any screenshots - does this mean I've no chance of getting my money back?

At the moment I'm feeling very let down by Monzo and am strongly considering moving to another bank as I use Monzo for everything. I suppose if the replies tell me that Monzo are being reasonable I'll back down, but I'm really not sure about them just taking money from my account leaving me with nothing!!

Shakin_Steve

Monzo are doing what they are obliged to do. The money will not have been returned to HSBC, it will have been retained by Monzo, waiting for a reply from you. 

In normal circumstances, the minute you dispute the recall the money should be returned to your account. However, it seems that you don't wish to engage, and banks can't second guess what's going on. Obviously, the person claiming that the money was sent in error is entitled to your details, so they can take action to recover it if necessary. 

This resolution, though not perfect, is the best way of dealing with these kind of disputes. Your situation is somewhat unusual.

grumbler

MSE article.

Sent money to the wrong bank account? Now it should be easier to ...

Keep_pedalling

As this was a personal transaction then I would keep it simple and say exactly that that it was a personal transaction and that Joe Bloggs did actually owe you the £500. If the transaction does not show the account holders name on your statement you can provide their details to show that you know exactly who sent you the money.

grumbler

Banks aren't arbiters. If you don't agree to return the money, your bank will give your details to the sender so that they could try to recover it by other means, e.d. Small Claims Court.

eskbanker

grumbler said:

Banks aren't arbiters. If you don't agree to return the money, your bank will give your details to the sender so that they could try to recover it by other means, e.d. Small Claims Court.

Only if they're prepared to breach the Data Protection Act (so they won't do this)!

grumbler

eskbanker said:

grumbler said:

Banks aren't arbiters. If you don't agree to return the money, your bank will give your details to the sender so that they could try to recover it by other means, e.d. Small Claims Court.

Only if they're prepared to breach the Data Protection Act (so they won't do this)!

Well, how wrong I was believing that this nonsense changed at last when new safeguards were introduced!

So, when MSE suggest going 'even to court' do they mean suing the bank? Poor banks - I feel more and more sorry for them.

Some time ago it was impossible to check whether some bank account belonged to some particular person - allegedly because of the same stupid DPA. Now it's easy to do. Was the DPA changed accordingly?

Shakin_Steve

grumbler said:

eskbanker said:

grumbler said:

Banks aren't arbiters. If you don't agree to return the money, your bank will give your details to the sender so that they could try to recover it by other means, e.d. Small Claims Court.

Only if they're prepared to breach the Data Protection Act (so they won't do this)!

Well, how wrong I was believing that this nonsense changed at last when new safeguards were introduced!

So, when MSE suggest going 'even to court' do they mean suing the bank? Poor banks - I feel more and more sorry for them.

Some time ago it was impossible to check whether some bank account belonged to some particular person - allegedly because of the same stupid DPA. Now it's easy to do. Was the DPA changed accordingly?

I obviously misunderstood the legislation also. I thought that the recipient of the funds could be sued directly, must pay more attention.

eskbanker

grumbler said:

eskbanker said:

grumbler said:

Banks aren't arbiters. If you don't agree to return the money, your bank will give your details to the sender so that they could try to recover it by other means, e.d. Small Claims Court.

Only if they're prepared to breach the Data Protection Act (so they won't do this)!

Well, how wrong I was believing that this nonsense changed at last when new safeguards were introduced!

Which 'nonsense-changing' new safeguards are you referring to?  If you mean the introduction of the misdirected payments procedure in 2014/16 then that didn't reverse the protections afforded by the DPA.

grumbler said:

So, when MSE suggest going 'even to court' do they mean suing the bank? Poor banks - I feel more and more sorry for them.

It is true to say that court action would be the route to follow in the event that a recipient of a misdirected payment refuses to return the funds, but the sender first needs to obtain a court order to force the recipient's bank to disclose the recipient's personal details (a Norwich Pharmacal order), after which the sender can take court action against the recipient.

grumbler said:

Some time ago it was impossible to check whether some bank account belonged to some particular person - allegedly because of the same stupid DPA. Now it's easy to do. Was the DPA changed accordingly?

Assuming you're referring to Confirmation of Payee, this protocol was presumably implemented within the bounds of what DPA, sorry, the 'stupid DPA', permits, as it was never likely that the data protection legislation would be amended specifically for this purpose!  CoP obviously falls some way short of full disclosure of the payee's details, even though it does confirm a partial or full match with the name of the account holder....

grumbler

eskbanker said:

grumbler said:

eskbanker said:

grumbler said:

Banks aren't arbiters. If you don't agree to return the money, your bank will give your details to the sender so that they could try to recover it by other means, e.d. Small Claims Court.

Only if they're prepared to breach the Data Protection Act (so they won't do this)!

Well, how wrong I was believing that this nonsense changed at last when new safeguards were introduced!

grumbler said:

Some time ago it was impossible to check whether some bank account belonged to some particular person - allegedly because of the same stupid DPA. Now it's easy to do. Was the DPA changed accordingly?

Assuming you're referring to Confirmation of Payee, this protocol was presumably implemented within the bounds of what DPA, sorry, the 'stupid DPA', permits, as it was never likely that the data protection legislation would be amended specifically for this purpose!  CoP obviously falls some way short of full disclosure of the payee's details, even though it does confirm a partial or full match with the name of the account holder....

Just imagine (in pre CoP times) coming to a branch (or using telephone) and asking politely "Can you tell me, please, whether your account xx-xx-xx yyyyyyyy belongs to Mr J.Smith? The answer would be something like "DPA.... DPA.... DPA .... DPA........"

eskbanker

grumbler said:

eskbanker said:

grumbler said:

eskbanker said:

grumbler said:

Banks aren't arbiters. If you don't agree to return the money, your bank will give your details to the sender so that they could try to recover it by other means, e.d. Small Claims Court.

Only if they're prepared to breach the Data Protection Act (so they won't do this)!

Well, how wrong I was believing that this nonsense changed at last when new safeguards were introduced!

grumbler said:

Some time ago it was impossible to check whether some bank account belonged to some particular person - allegedly because of the same stupid DPA. Now it's easy to do. Was the DPA changed accordingly?

Assuming you're referring to Confirmation of Payee, this protocol was presumably implemented within the bounds of what DPA, sorry, the 'stupid DPA', permits, as it was never likely that the data protection legislation would be amended specifically for this purpose!  CoP obviously falls some way short of full disclosure of the payee's details, even though it does confirm a partial or full match with the name of the account holder....

Just imagine coming to a branch (or using telephone) and asking politely "Can you tell me, please, whether your account xx-xx-xx yyyyyyyy belongs to Mr J.Smith? The answer would be something like "DPA.... DPA.... DPA .... DPA........"

Your point being....?