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    • Daffodily
    • By Daffodily 5th Jul 18, 12:05 PM
    • 3Posts
    • 0Thanks
    Daffodily
    Payment sent to closed account
    • #1
    • 5th Jul 18, 12:05 PM
    Payment sent to closed account 5th Jul 18 at 12:05 PM
    Back in April I did an online bank transfer of 100 to my student grandson. Unfortunately I wasn't aware that he had just closed that account - having been induced by another bank. I notified my bank (HSBC) at once but have been unable to recover the money. I was initially told the payment would "bounce back". It didn't and I was then told a trace would be put on the payment and it might take some time. Since then both HSBC and the receiving bank (Nat West) are each saying it's up to the other to sort it. Surely the payment must be somewhere! Glad of any ideas please.
Page 1
    • pochisoldi
    • By pochisoldi 5th Jul 18, 12:13 PM
    • 147 Posts
    • 88 Thanks
    pochisoldi
    • #2
    • 5th Jul 18, 12:13 PM
    • #2
    • 5th Jul 18, 12:13 PM
    Back in April I did an online bank transfer of 100 to my student grandson. Unfortunately I wasn't aware that he had just closed that account - having been induced by another bank. I notified my bank (HSBC) at once but have been unable to recover the money. I was initially told the payment would "bounce back". It didn't and I was then told a trace would be put on the payment and it might take some time. Since then both HSBC and the receiving bank (Nat West) are each saying it's up to the other to sort it. Surely the payment must be somewhere! Glad of any ideas please.
    Originally posted by Daffodily
    Get your grandson to chase their current bank.
    If he used the "full switching service", payments destined for the old account should be redirected to the new one for 3 years.

    See
    https://www.bacs.co.uk/services/accountswitchingservice/pages/accountswitchingservice.aspx

    Assuming he used the switching service:
    If your grandson's new bank refuses to do anything, he should raise a complaint, and if they still refuse, when he gets the deadlock letter, go to the ombudsman.

    If he didn't use the switching service, he should complain to the old bank.
    If they refuse to send the money back or forward it on, then he should raise a formal complaint with them.

    As an aside, when I've had a problem with two organisations speaking to each other I usually complain to each one at the same time in writing and I explicitly give each organisation permission to share any personal data to resolve the issue. Something like "For the avoidance of doubt I explicitly give X and Y permission to share whatever data is required between themselves in order to resolve this issue" avoids any BS "data protection" excuses.

    PochiSoldi
    • 18cc
    • By 18cc 5th Jul 18, 12:13 PM
    • 852 Posts
    • 572 Thanks
    18cc
    • #3
    • 5th Jul 18, 12:13 PM
    • #3
    • 5th Jul 18, 12:13 PM
    Did your grandson simply close his old account and then independently open a new account or did he use the switching service to switch bank accounts

    if the latter the payment would have been automatically forwarded onto his new account
    • agrinnall
    • By agrinnall 5th Jul 18, 12:20 PM
    • 21,416 Posts
    • 17,230 Thanks
    agrinnall
    • #4
    • 5th Jul 18, 12:20 PM
    • #4
    • 5th Jul 18, 12:20 PM
    I'm going to assume that CASS wasn't used, so what you were initially told by HSBC is more or less correct, the payment should either have been bounced back to your account or it should go into a suspense account at NatWest. It is the responsibility of HSBC to trace and recover the money, if they fail to do so you should make a formal complaint and if necessary take it to the FOS.
    • Daffodily
    • By Daffodily 5th Jul 18, 12:21 PM
    • 3 Posts
    • 0 Thanks
    Daffodily
    • #5
    • 5th Jul 18, 12:21 PM
    • #5
    • 5th Jul 18, 12:21 PM
    Many thanks pochisoldi and 18cc. My grandson did not use switching service. When he enquired of Nat West they sent him an e mail basically saying "there were no credit payments received for your closed account". I will do as you suggest pochisoldi and write to both banks. Thanks again.
    • robatwork
    • By robatwork 5th Jul 18, 1:31 PM
    • 4,687 Posts
    • 5,259 Thanks
    robatwork
    • #6
    • 5th Jul 18, 1:31 PM
    • #6
    • 5th Jul 18, 1:31 PM
    https://www.hsbc.co.uk/1/2/contact-and-support/feedback-and-complaints

    Complaints Form
    • agrinnall
    • By agrinnall 5th Jul 18, 5:04 PM
    • 21,416 Posts
    • 17,230 Thanks
    agrinnall
    • #7
    • 5th Jul 18, 5:04 PM
    • #7
    • 5th Jul 18, 5:04 PM
    I will do as you suggest pochisoldi and write to both banks.
    Originally posted by Daffodily

    You can't write to NatWest as you're not the owner of the closed account (well, you can, but they won't answer). As I've already said, it is the responsibility of HSBC to resolve this, but feel free to ignore me and carry on with what you seem to think is the right thing to do.
    • 18cc
    • By 18cc 5th Jul 18, 5:42 PM
    • 852 Posts
    • 572 Thanks
    18cc
    • #8
    • 5th Jul 18, 5:42 PM
    • #8
    • 5th Jul 18, 5:42 PM
    agree with agrinall
    • jonesMUFCforever
    • By jonesMUFCforever 5th Jul 18, 6:40 PM
    • 25,313 Posts
    • 12,544 Thanks
    jonesMUFCforever
    • #9
    • 5th Jul 18, 6:40 PM
    • #9
    • 5th Jul 18, 6:40 PM
    I wonder if said grandson left one bank with a debt which was closed / written off to a collections account.
    The 100 received could possibly gone towards that?
    What goes around - comes around
    give lots and you will always receive lots
    • Thrugelmir
    • By Thrugelmir 5th Jul 18, 6:44 PM
    • 61,024 Posts
    • 54,224 Thanks
    Thrugelmir
    I wonder if said grandson left one bank with a debt which was closed / written off to a collections account.
    The 100 received could possibly gone towards that?
    Originally posted by jonesMUFCforever
    My thought as well.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
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