Banking errors and compensation

Mike607

I opened a cash ISA account with bank X to be funded by old matured ISA money from bank Y and Z respectively as secure ISA transfers

I requested bank X request from bank Y the full balance of £40,000 plus the closing interest to close the bank Y matured ISA account.

I also requested bank X to request 50,000 as a part withdrawal from a matured ISA account in bank Z which contained £115,000

 

Bank X got the requests reversed,  asking for £50,000 from bank Y which failed because there wasn't that much in the account, and had to be redone, conversley, asking bank Z to close their account and send the full balance, so bank Z sent £100,000 the full amount and closed the account.

There is no dispute over this bank X accept the two errors on their part and have apologised after rectifying the errors with the other banks, nothing more. 

My enquiry here one of compensation, statutory and goodwill 

Bank X failed in their duty to be adequately careful, and wonder if there is a specific banking regulation I can refer to in asking then for financial compensation for these errors in addition to their apology. 

There is about £65 actual loss of interest due to the time delays, but equally important is the considerable stress and worry I had over this, together with many hours on the phone to all banks, often waiting long times in ques which totally interrupted and disrupted the days while this was sorted out.

One of the "innocent" banks in this said if they made what that considered to be a very serious banking errors like this over two transfers they would certainly offer a goodwill payment for the worry stress and disturbance it caused as well as for the actual amount their errors caused. 

If that's the case what might be a reasonable amount of goodwill if any to accept, I have no idea what a standard might be, 

also if there are any pointers to any phrasing that might make a difference, for eg, would it be of value or hindrance to settlement to mention referral to the banking ombudsman. 

anotherquestion

Reminds me of the fiasco last year with both Natest and Royal bank of Scotland when they were offering a fixed two year rate of 5.9% ISA and everything that could go wrong did go wrong.

Put in a complaint last September and heard nothing since. 

I will have to ring complaints again. Probably you will have to do the same, if we don't follow it up we we will get nowhere.

For myself I would probably accept £100, my partner has similar problems, for the amount of money she lost as a result of Natwest error I would say £200, so depends on what you think you may have lost and inconvenience.

Will have to chase up ours as well.

Nasqueron

You won't get more money by effectively "blackmailing" them with the FOS (not seriously suggesting you're going to do anything wrong ) - they will have a set level of compensation for stuff like this and FOS isn't likely to make them pay more. If you get more than the quantifiable loss then you're doing well. You won't get consequential losses for "stress" or "disturbance" 

35har1old

anotherquestion said:

Reminds me of the fiasco last year with both Natest and Royal bank of Scotland when they were offering a fixed two year rate of 5.9% ISA and everything that could go wrong did go wrong.

Put in a complaint last September and heard nothing since. 

I will have to ring complaints again. Probably you will have to do the same, if we don't follow it up we we will get nowhere.

For myself I would probably accept £100, my partner has similar problems, for the amount of money she lost as a result of Natwest error I would say £200, so depends on what you think you may have lost and inconvenience.

Will have to chase up ours as well.

Had the problem with RBS which took roughly 4 months for the transfer to complete as to the loss there was no loss as they applied the interest that was due for the period to the balance.As to compensation paid I received 2 payments 1 was for £250 and 2nd £75
Have you a extension number and reference number for the person dealing with your complaint 
If not you will not get a answer until you do