Genuine mistake?

Hotglove

Hi,

I recently applied to make a withdrawal of £3000 from a drawdown account.

Unfortunately, the provider’s confirmation letter was put in my junk folder, so my first knowledge of the transaction was when payment was made, but the payment was incorrect, the provider had transferred the full balance of the account, nearly £40,000, had closed the account, and deducted £15,000 tax.

This is a current issue and the provider can be very slow in responding.

I phoned the provider as soon as I could (next working day) and they agreed to accept a repayment, it took 2 weeks for them to send bank details for the repayment, which was made within 24hrs of receipt of bank details, and I am waiting to hear what will happen about the tax charge.

As I understand it, HMRC accept that genuine mistakes happen and, if dealt with promptly, can be corrected.

Does anybody know whether, in these circumstances, the provider will reinstate the full £40k, or will the tax have to be claimed as a rebate as part of the self assessment for the current year?

An irritating side issue is that, because the account was closed, I have been unable to log in to the account to confirm that the error was the provider’s and not mine.

The transaction was made online and, in future, in any transaction of substance, I will take screenshots of each stage of the procedure.

Not a fun situation.

molerat

In a genuine error situation the provider should unwind the transaction so to put you in a "it never happened" situation. A lot of course depends on who made the error. Often a simple tick in a box could override what was written in other boxes but I would hope that error checking at the time would pick that up.

Sam_666

Have you raised complaint ?