Trapped in a crazy Lloyds international banking loophole nightmare!

Maegi

Four_Oaks_Bookworm said:

Hoping for some help here.

I work for an American company, and my expenses are reimbursed to me monthly from our head office in the USA (in GBP).   In November I received my GBP1164.00 expense payment twice (an error by the paying Bank of America, not my employer who has not been double-debited the amount).  Lloyds wrote to me to request my authority to return the duplicate payment, which I gave both in writing and on the phone.

I have no idea what to do now.  My employer isn't interested (they only got debited the amount once, so they're not affected), I want to pay back the money that I've received in error,  so this problem is entirely of Bank of America and Lloyd's making.

Please help, I have no wish to be sued by a powerful American Bank!

BOA would have to make some attempt to recover the funds before they sue you and it's fairly unclear what jurisdiction you are actually resident in. 

Once the account is back into sufficient credit then let your bank debit the funds or make arrangements to send the funds back to BOA ensuring you deduct any costs for doing so. 

xylophone

I work for an American company, and my expenses are reimbursed to me monthly from our head office in the USA (in GBP).   In November I received my GBP1164.00 expense payment twice 

Did you realise that this had happened when it happened?  If so, why did you not leave the money in the account and query the overpayment?

BethRobinson

Four_Oaks_Bookworm said:

BethRobinson said:

flaneurs_lobster said:

Not directly related to your double-payment issue but I'm intrigued as to why anyone (in employment) would run a current account in overdraft for 70% of the time? 

It's an odd way to run everyday finances, and has led to the unforeseen problem that you have now.

You have no idea of their circumstances.

Your first question is irrelevant and lacks understanding that not everyone has the same liquidity situation

Your second point is factually incorrect: the fact that I have and operate an overdraft has nothing to do with Lloyds' unwillingness to take back funds they've credited to me as a result of (not my) error, and has not 'led' to this problem

You didn't need to quote me.

HedgehogRulez

BethRobinson said:

Four_Oaks_Bookworm said:

BethRobinson said:

flaneurs_lobster said:

Not directly related to your double-payment issue but I'm intrigued as to why anyone (in employment) would run a current account in overdraft for 70% of the time? 

It's an odd way to run everyday finances, and has led to the unforeseen problem that you have now.

You have no idea of their circumstances.

Your first question is irrelevant and lacks understanding that not everyone has the same liquidity situation

Your second point is factually incorrect: the fact that I have and operate an overdraft has nothing to do with Lloyds' unwillingness to take back funds they've credited to me as a result of (not my) error, and has not 'led' to this problem

You didn't need to quote me.

You’re right though, the OP is showing a staggering amount of financial illiteracy by operating their accounts in such a fashion.

SiliconChip

xylophone said:

I work for an American company, and my expenses are reimbursed to me monthly from our head office in the USA (in GBP).   In November I received my GBP1164.00 expense payment twice 

Did you realise that this had happened when it happened?  If so, why did you not leave the money in the account and query the overpayment?

I suspect that the account was already in overdraft when the overpayment went in.

BethRobinson

HedgehogRulez said:

BethRobinson said:

Four_Oaks_Bookworm said:

BethRobinson said:

flaneurs_lobster said:

Not directly related to your double-payment issue but I'm intrigued as to why anyone (in employment) would run a current account in overdraft for 70% of the time? 

It's an odd way to run everyday finances, and has led to the unforeseen problem that you have now.

You have no idea of their circumstances.

Your first question is irrelevant and lacks understanding that not everyone has the same liquidity situation

Your second point is factually incorrect: the fact that I have and operate an overdraft has nothing to do with Lloyds' unwillingness to take back funds they've credited to me as a result of (not my) error, and has not 'led' to this problem

You didn't need to quote me.

You’re right though, the OP is showing a staggering amount of financial illiteracy by operating their accounts in such a fashion.

She's still quoted the wrong person. 

born_again

Four_Oaks_Bookworm said:

born_again said:

I guess the biggest reason they won't do it, is the risk of a complaint for the extra interest incurred due to the payment being taken while in O/D
Or the risk the account holder will simply default.

I would have thought that would have been over-ridden by my written and verbal consent to take the money?  

Depends on their policy. Sometimes these situations are one that even with customer approval they still will not action.
You could try raising a complaint about it & see if that would make them change their mind. If not & they let it go to FOS, that would say to me that it is a FCA regulation.
I know there are certain situations where you can not put a customer into a O/D position.

Ergates

Four_Oaks_Bookworm said:

born_again said:

I guess the biggest reason they won't do it, is the risk of a complaint for the extra interest incurred due to the payment being taken while in O/D
Or the risk the account holder will simply default.

I would have thought that would have been over-ridden by my written and verbal consent to take the money?  

There's still a difference between a bank giving you an overdraft facility, and a bank putting you into that overdraft facility - especially given that any charges/interest this would incur will be payable to the bank.  i.e. The bank takes action (withdraws the funds) that pushes you into the OD (or further into the OD) and then profits from you being in the OD.  This is a direct conflict of interest against their duty of care to people in a position of financial vulnerability.  That you've said "It's OK, go ahead" doesn't absolve them of their responsibilities. 

If you want an analogy, see the legislation around APP fraud - the customer authorises the payment, but the bank is still held responsible for not stopping it.

Four_Oaks_Bookworm said:
Lloyds' unwillingness to take back funds they've credited to me as a result of (not my) error, and has not 'led' to this problem

It wasn't Lloyds that created this problem either though, it was the American bank.

eskbanker

Four_Oaks_Bookworm said:

My finances are such that I'm only ever in + balance for a couple of days each month after payday, and then my bills put me in -balance almost straight away, so there's no window for them to take these funds from a +balance.  So I'm trapped in a loophole where I want to repay the money, but Lloyds won't take it from an overdraft, and I never have enough + in my account to cover the amount required

If you're in the black on and immediately after payday every month, and you received an unsolicited extra £1164 into your account, which you recognised wasn't yours to keep, you should be presumably be more than £1164 in credit next time payday comes around - can you ask Lloyds to process the repayment in that short window before your bills come out?