Bank sent money to an account before cancel SO. How to get back?

[vctmfraud]

A friend of mine encountered a problem with a bank transfer. He had set up a Standing Order to pay his house rent monthly..say £950/= to his house owner. Now He moved out from that house and now is staying somewhere else.

Unfortunately he forgot to CANCEL the standing order so that a payment of rental amount transferred to the former house owner's bank account weeks ago. Bank told him to contact houseowner to get his money back. He now cancelled the standing order but didnt get his money back from the former house owner.

For the last 2 weeks, he has been contacting former house owner explaining this money transfer and requesting to send the money back to his account. F.H.owner too saying he would contact his bank and do but still didnt send .
Friend now is worried as sometimes will loose this money as houseowner now not responding his calls...

What should friend do to get his money back ? please advise

[des8]

Re: Bank sent money to an account before cancel SO. How to get back?

Bank should take steps to try and recover the payment by contacting the receiving bank. There is a voluntary code in place that they should work to.
If they haven't, then make a formal complaint.
If you're not happy with the outcome there is the FOS

On the other hand if he wants a faster settlement:
It is of course illegal for the recipient to retain and spend the cash.
Write to the ex landlord pointing this out and asking for return of the cash within 14 days.
Warn that if it is not forthcoming court action will follow.

[vctmfraud]

Re: Bank sent money to an account before cancel SO. How to get back?

des8,
Thank you very much for your advice. I contacted bank and told about this, but its a pity , bank officers in the bank DO NOT KNOW what voluntary code is and is all about............!!!! Then I explained .. I was told to wait some more weeks so I did. Then contacted headoffice and explained . Then they said they took my request and try to recover money from other bank within 21 days. so I am waiting..
If bank coudnt I am preparing to complain to FOS. I cant understand why these guys are cheating .. Really stressful..
Thanks again.
Note ; if you can please reply a question asked in the forum ' going to court ' regaring serving court order ..pl

[Trax01]

Re: Bank sent money to an account before cancel SO. How to get back?

You can try the bank, but it’s not really their issue. They followed your instructions, and it’s your friends fault he didn’t cancel - no blaming them, just trying to point out the bank don’t have any liability with payment as no error by them.

If the bank cannot recovery the money, and former landlord refuses to play ball, small claims court against landlord is only next option. In my opinion.

[vctmfraud]

Re: Bank sent money to an account before cancel SO. How to get back?

trax01

I too went to the bank and explained as above post.

I had some questions about this erroneous transaction. Because , Standing Order means - A standing order (or a standing instruction) is an instruction a bank account holder ("the payer") gives to his or her bank to pay a set amount at regular intervals to another's ("the payee's") account.
By definition of the bank , its a regular fixed payments to a particular person or organization

In this case, Customer did not deposit money for 04 months so bank ddnt send any standing order payment . Customer deposited some money after 04 months , and then bank has sent the money to the account which was already set for an SO.

The question arises here, if by definition , SO is a regular fixed payments , why bank coudnt realise and understand , the SO may have been stopped as no money sent for the last 04 months ? So I think bank was fault in this case..

[Trax01]

Re: Bank sent money to an account before cancel SO. How to get back?

In that case he may have an argument with the bank, in that they should have canceled the SO, but generally it’s DD they would cancel, but with SO it’s up to the customer. I know I have had ones that didn’t get paid due to insufficent funds, but the next month they will get paid if funds are in.

[vctmfraud]

Re: Bank sent money to an account before cancel SO. How to get back?

In some points you are correct. But in this case , not one month, but 04 MONTHS, SO not paid. if then, Bank must have received the permission from the customer before transferring money.. Am I correct ?