Payment in error

[Milpol1664]

4th Jan I made a payment of 250 to an account at TSB, the account which i thought was my grandson, it wasn't, anyway spoke to my bank, Lloyd's who took it on as an " payment in error" and investigate it...On 27 January I had a payment of £26 paid into my acct, which was a partial refund from the incorrect account that I paid into. I queried it today and was told that the payment was all i was going to get back and the investigation closed, bank said they will do nothing else...... To me a layman, even though it was my mistake, its surely theft of £224 under Theft Act 1968.Trying to figure out if there is anything legal I can do to get it back....Regards

[Sam101]

The bank should offer some explanation to you for their reason not to try and obtain recovery in this matter?

[echat11]

It's a difficult situation, when it's different banks, this should be slightly easier if it's the same bank.

It should be a simple situation of reversing the transaction. It doesn't need investigating.

There are quite a few things you can do, firstly write a Formal Letter of Complaint to the CEO, mark it as such. Explain what's happened, why you have been left distressed and what you want them to do about it.

Email it to:

Debbie Crosbie
Chief Executive Officer
TSB

debbie.crosbie@tsb.co.uk

When they send you a Final Response if you are still unhappy, lodge a complaint with the FOS
(TSB has to pay the FOS to look into your complaint and it isn't small change).

https://www.financial-ombudsman.org.uk/

[Milpol1664]

Would it be prudent to copy Lloyd's Bank CEO in as well.

[Milpol1664]

I'm presuming that the reason for not the full amount is either not enough fu ds in the account or maybe account was overdrawn and the 250 helped clear it.

[echat11]

I'm presuming that the reason for not the full amount is either not enough fu ds in the account or maybe account was overdrawn and the 250 helped clear it.

That could be the case, but that is irrelevant. The bank shouldn't rely on 'errors' to clear accounts that might have debit balances.

They should leave that customers account in the position before the 'error' occurred.

When you write your letter, use 4.1 from BCOBS, at this moment in time TSB isn't communicating with you in the way it should. Quote directly from BCOBS.

https://www.bsa.org.uk/BSA/files/b9/...249e8aa013.pdf

The fact that some monies has been refunded shows they are willing to 'reverse' the transaction.

It is up to you if you copy in Lloyds CEO.

The thing is that their Executive Teams pick up the complaints and deal with them.

They need a bit of pushing 'to kick into action'.

[echat11]

You need to be clear in your letter who the receiving bank is (bank that received in error), who your bank is (sending bank) and your grandson's bank (bank that should of received the money).

If the sending bank was TSB you have email details of the CEO in a previous post.

Fill in the XXXXXXXXXX correctly.

I made a payment to a Lloyds Bank account. I'm afraid I do not have those account details anymore. On 4th January 2022 at 17:32 hours I sent the sum of £250 in the belief that I had sent it to the correct account number. The transaction number was XXXXXXXXXXXXXXXX. This transaction was made from Sort Code XXXXXX Account number XXXXXXXX.

I believed it was going to my grandson's account, XXXXXXXXXXXX, however I checked to ensure the money had been received but it had not been received, I also checked with my grandson to see if the account details were correct, but unfortunately they weren't. At this juncture i phoned Lloyds Bank and spoke to somebody about the payment made in error. All the details were taken and I was told that it would be investigated and I would be informed of the outcome.

I would remind you that Lloyds Bank are regulated by the Financial Conduct Authority. Lloyds Bank signed up to the Banking Conduct of Business Sourcebook (BCOBS). BCOBS states that 'a firm to pay due regard to the information needs of its clients and communicate information to them in a way which is clear, fair and not misleading'.

On 27 January a credit of £26 appeared in my account XXXXXX XXXXXXXXX, this purporting to come from the original case number XXXXXXXXX, however I also received a letter from Lloyds Bank stating that £250 had been paid into my account. This obviously wasn't the case, please find attached a copy of the letter informing me of the full refund. I refer you to BCOBS which states that 'a firm to pay due regard to the information needs of its clients and communicate information to them in a way which is clear, fair and not misleading'.

I phoned Lloyds Bank to try and find out what was happening as far as the rest of the money was concerned and to be quite frank, I was given in my opinion, the 'brush off'. Telling me 'that's all I was getting (£26) back and as far as Lloyds Bank were concerned that was the end of the matter'. I was told to seek advice from Citizens advice.

After informing you that the money was paid in error and therefore the receiver keeping the money has committed an offence under Theft Act 1968. Why are more steps not being taken to insist the funds are returned. Assuming receiver has refused to return money, what has the bank XXXXXX told them that the next step/action by them will be?

A copy of XXXXXXX letter to the receiver would be welcomed with obviously personal details redacted.

The fact that XXXXXXXXX has refunded a partial amount shows that they are willing to reverse the transaction, secondly the bank shouldn't rely on 'errors' to clear accounts that might have debit balances, should this be the case here, surely they should leave that customers account in the position before the 'error' occurred.

I feel that I did all I could to rectify 'the error', which I admit was my fault entirely, but this has left me in some distress (to lose £224), although in the great scheme of things as far as the bank is concerned it not a huge amount of money, but it is for me, over 1/3rd of my monthly state pension.

I have been with Lloyds TSB for over 35 years and believe I can be termed as a loyal customer, so I ask if you may see your way to refund me the £224 of the £250 which you stated in your letter was refunded back to me. If the monies is not refunded to my account, then I will be left with no choice but to lodge a formal complaint with the Financial Ombudsman Service.

I look forward to hearing from you.