Incorrect bank transfer

deb1111

Hi. I incorrectly transferred some money to the wrong account and I'm struggling to get it back. I have asked the bank for the recipients details do that I can take it to a small claims court. 9 months later and I still haven't received the information I need. What can I do?

eskbanker

Neither bank is obliged to disclose the recipient's address to you without a court order - how much did you send?

ForumUser7

@eskbanker

In the HSBC terms (I know OP hasn't named a bank), when payments go wrong section, it says:

'If you tell us it wasn’t a mistake we won’t return it. However, we’re required by law to share all the information about it with the bank the payment came from, if they ask us to.

This will include your name and address and the payment information. This is so that the person who made the payment can contact you directly.'

Does this mean that although they aren't obliged to give the details, but they can if they so wish? Just seems odd that they could possibly just give out the details without a court order.

I may have misinterpreted it, but it seems that theoretically someone who wanted an address for someone else could make a deposit into their account (maybe from like a work funds collection for a present), you think it was legitimate as it was an amount you were expecting from someone else, so you say it wasn't a mistake, but then the bank gives the address to the customer of the other bank.

sheramber

deb1111 said:

Hi. I incorrectly transferred some money to the wrong account and I'm struggling to get it back. I have asked the bank for the recipients details do that I can take it to a small claims court. 9 months later and I still haven't received the information I need. What can I do?

Which bank did you ask?

note  from above post.
However, we’re required by law to share all the information about it with the bank the payment came from, if they ask us to.

Information is given to the sending bank , not the person.

eskbanker

That does seem to be odd wording that HSBC have used in their terms, as my understanding is that data protection legislation prevents them from disclosing personal data in that way.  I wonder specifically what they're referring to when asserting that they're "required by law" to do this, i.e. exactly which legislation is held to take precedence over DPA - there is always the argument that a recipient of mistaken funds is benefitting from unjust enrichment and that choosing not to cooperate with recovery efforts constitutes the criminal act of theft, but I was under the impression that recipients' banks weren't required to disclose personal data as a matter of course in these scenarios....

deb1111

I sent money from a Halifax back account. I mistyped 1 digit in the sort code. It was over £1000. 
 "If funds can't be recovered, your bank is required to give clear and accurate information on the options available to you, which may include making a complaint or taking court action against the recipient" (from Which)
Halifax have requested the recipient's details from the receiving bank, but 9 months later, I am no further forward. I can't take court action as I don't know the money has gone to.
I just wondered if anyone knew what my next steps should be.

eskbanker

So have Halifax spelt out the options available to you yet?  What's happened over that nine months, have they indicated that they haven't been able to obtain the recipient's details or just stopped updating you?

What was the name (or sort code) of the bank you paid into?  Did the Confirmation of Payee check appear to work OK or did it report a failed matching attempt, i.e. was it your error or something awry within Halifax?

deb1111

Halifax said if I wanted to take legal action, I worked need to put in writing that I wanted the recipient's details. I did that. Then I heard nothing. When I chased it up they said the other bank hadn't replied. Halifax suggested I should make made a complaint with them which after 3 months, the ombudsman rejected, and said my complaint was with Halifax.  The ombudsman has told me today, after another 3 months that my complaint with Halifax is not valid because they have tried to get the details. It's so frustrating.

eskbanker

deb1111 said:

Halifax said if I wanted to take legal action, I worked need to put in writing that I wanted the recipient's details. I did that. Then I heard nothing. When I chased it up they said the other bank hadn't replied. Halifax suggested I should make made a complaint with them which after 3 months, the ombudsman rejected, and said my complaint was with Halifax.  The ombudsman has told me today, after another 3 months that my complaint with Halifax is not valid because they have tried to get the details. It's so frustrating.

If Halifax have asked the other bank for the details but haven't received them then yes, FOS may indeed see that as reasonable, especially when it doesn't seem that the recipient's bank is actually obliged to disclose the details.  Which bank did the money go to?

deb1111

RBS. Which Halifax are part of. 😩

masonic

This seems a bit of an odd one as most banks signed up to the misdirected payments code of best practice, which I believe does permit a bank to make such disclosures as are necessary to allow legal proceedings to be initiated. Any complaint should always be made against your bank, because the recipient bank (if different) does not have a contractual relationship with you.

It would be helpful to understand the facts of the matter:

Do you know whether or not the recipient of the money has disputed that it was sent in error?

Is the recipient bank signed up to the voluntary code?