Being given the run around and not sure what to do next!

[frustratedpuppy]

Hi all, really hope that someone can give me some advice as I am literally at my wits end at the moment with my bank!

I recently won a PPI claim against BOS and was promised by the claims handler at BOS that the money would be sent to me via a cheque and this is the option I chose on the form they sent me to accept the offer and I also enclosed a letter with the form confirming the conversation I had had with them.

Thinking all was well I sat back thinking stupidly that the cheque would arrive shortly but when it didn't I got straight onto BOS who told me that they had already made the refund direct to my bank account?!!? I checked and there was no payment there so I got back onto them again and after spending hours on the phone trying to get to the bottom of things discovered that they had paid it into a Nationwide account that I had made one or two payments from years ago! The problem is that I don't have access to that account anymore as it's in Debt Management (one of the reasons I went ahead and claimed in the first place) and am now stuck in the middle as neither bank will take responsibility.

BOS are saying that they made the payment to that account as it was the one I had used to pay my loan payments (even though it wasn't) and will not accept it is there fault for not making the payment via cheque as they should have. They are telling me I have to get Nationwide to reject the payment but Nationwide are saying that it's not their responsibility and that BOS can just recall the payment but BOS are saying that this isn't the case!

I am totally at a loss as to what I can do now, does anyone know where I stand legally or what I can do now?

[Angry Cat]

Re: Being given the run around and not sure what to do next!

Reject the payment!
You will have to write a formal letter to Nationwide, in order to do so.

[CleverClogs]

Re: Being given the run around and not sure what to do next!

Why not sue WOS?

[Paul210]

Re: Being given the run around and not sure what to do next!

Unfortunately BOS have a right to make a payment to any acount they choose (I had a similar situation last year) as long as the account is held by you they are within their rights to deposit funds are are deemed legally to have made the payment to you.

With regard to rejecting the payment via Nationwide, they will not allow you to do this where the account is in default (likely due to DM). Unfortunately I think this is a case where the money will remain beyond reach.

It is worth however contactiung your DM company and advising them of the reduction in debt to nationwide this will ensure the payments to them and asny other creditors in the plan are rescheduled meaning nationwide will not be overpaid and in theory your DM plan will be repaid sooner.

[never-in-doubt]

Re: Being given the run around and not sure what to do next!

Unfortunately BOS have a right to make a payment to any acount they choose

This is not really true now, no sorry I totally disagree.

The bank must pay you by way of a medium that is acceptable and upon which was agreed by both parties. They cannot go and pay it into an "older" account that has never been mentioned.

However that said, had the original account with HBOS been in arrears they'd usually pay this off and then refund the difference, but to send it via BACS to another bank is utter nonsense, they can recall it.

All the OP needs to do is to email the case handler at the FOS and report this, they will then advise HBOS to repay the money as an appropriate and acceptable method, ie cheque!

First things first, send a letter to HBOS demanding they issue a cheque as per your signed agreement, and then go on to explain that you're notifying the FOS case handler as well as this should never have happened.
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It is worth however contactiung your DM company and advising them of the reduction in debt to nationwide this will ensure the payments to them and asny other creditors in the plan are rescheduled meaning nationwide will not be overpaid and in theory your DM plan will be repaid sooner.

OP I strongly suggest you do not consider this as HBOS will be recalling the payment made to NW - it's nothing for you to get worried over. Any extra payments made will be devited back again, if you get charges etc from NW as a result of this then you pass them back to HBOS to pay.

No need to contact anyone other than HBOS and the FOS case handler. You do not need to chase NW either as it's not your concern, the point is they sent the money to an unconfirmed account which for all they know could have been closed years ago. Its not their (HBOS) call to make.

Legally you hold the ace card here, they are wrong, you are 100% correct to pick and choose how payment is paid to you.

[Paul210]

Re: Being given the run around and not sure what to do next!

n-i-d, i went through this last year on a very similar situation, the lender pays to the bank account payments taken from as a security check, this ensures money goes back to the person who paid and not via a cmc/3rd party. They are within their rights to do this, I also thought that by indicating on the offer acceptance how you would like payment it could constitute a basic contract, however when i queried with FOS they indicated that the acceptance of the offer is what counts the payment details are just to establish clients preference and FOS would not treat this as binding. This surprised me but thats the advice they gave.

[never-in-doubt]

Re: Being given the run around and not sure what to do next!

n-i-d, i went through this last year on a very similar situation, the lender pays to the bank account payments taken from as a security check, this ensures money goes back to the person who paid and not via a cmc/3rd party. They are within their rights to do this, I also thought that by indicating on the offer acceptance how you would like payment it could constitute a basic contract, however when i queried with FOS they indicated that the acceptance of the offer is what counts the payment details are just to establish clients preference and FOS would not treat this as binding. This surprised me but thats the advice they gave.

The info given by the FOS on that occasion is quite incorrect, at the end of the day lets go back to basics to help explain.

I sell you an iPhone on eBay and state that PayPal is my ONLY payment option. You then post me a cheque, I bin it and relist the item and mark you as a non-payer.

I would be right to do this, as you never paid as per the agreement when I accepted your offer/bid. Therefore put into context here, the OP made a deal in which the FOS had helped secure a refund of premiums, the norm in such cases is to issue a refund to the originating bank account (if open) or send a cheque to the home address. That is it. Nothing else.

The only exception to that is if a preference form was signed, ie the bank asked the OP i how he'd like to be paid etc. I have an example on a case I am fighting myself - see this: ---> Niddy vs Opus (ex CitiCard) - allaboutFORUMS

Scroll down and you'll see the offer letter there! That is what would usually be agreed and if they then sent it somewhere different to that, they are 100% at fault.

Hope that helps explain it.

[Paul210]

Re: Being given the run around and not sure what to do next!

I don’t think this was a FOS case originally (if ive missed something then hands are duly being held up) from reading it was a BOS offer pre FOS referral.

BOS acceptances come in 2 forms, offer with value, telling you how much and asking where you want funds directed to and offer without value, saying upheld complaint and asking where want funds directed with calculations for redress to follow. I have seen numerous occasions where complainants have had their chosen destination rejected by the bank i.e. requesting payment to 3rd party, despite having provided an authority stating this was their intention.

Whilst i take the ebay analogy on board, using this rationale, i think that unless the complainant specifically states on the acceptance form or in writing that their acceptance of the offer is conditional upon payment by a certain method/to a certain bank account then it would be a struggle should push come to shove in forcing the lender to rectify.

It may be we are 2 bald men arguing over a comb here (and i hope we are) as BOS may rectify if asked nicely but I wouldn’t like to bet on any bank being co-operative in the current climate.

[never-in-doubt]

Re: Being given the run around and not sure what to do next!

Hmmm fair points.

Ok, let's say I've heard through the grapevine that HBOS are honouring ALL claims made before 5th May 2011. That said, they're surely going to repeatedly make this mistake so I'm sure there will be wider coverage. It cant be isolated so someone somewhere will take umbrage, I'm certain of that.

[CleverClogs]

Re: Being given the run around and not sure what to do next!

Whilst I am not wholly convinced by the ebay analogy, I rather doubt that one's employer would be allowed to claim they had paid one's salary by giving the money directly to one's creditors.

[Paul210]

Re: Being given the run around and not sure what to do next!

Hmmm fair points.

Ok, let's say I've heard through the grapevine that HBOS are honouring ALL claims made before 5th May 2011. That said, they're surely going to repeatedly make this mistake so I'm sure there will be wider coverage. It cant be isolated so someone somewhere will take umbrage, I'm certain of that.

I'd be surprised if they do givent Lloyds (same group) have said wont, however maybe if enough people get caught on this and complain they may revisit their internal procedure, i certainly hope so because as you correctly say there will undoubtabley be more people get caught out with this.
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Whilst I am not wholly convinced by the ebay analogy, I rather doubt that one's employer would be allowed to claim they had paid one's salary by giving the money directly to one's creditors.

True but this is slightly different, if they had paid the money direct to creditors I would agree, however they paid it into a bank account in the complainants name and which the complainant had used to pay them from previously, therefore in effect paid to the claimant.

The fact that this account was overdrawn, defaulted and part of a debt management plan was not their fault or concern. Wihilst I sympahise with the complainants position there was no way HBOS could know this, they simply followed their interenal procedures.