Payment dispute

[MrAB]

Hi,

I made a payment to someone from my company's HSBC Business Account to their Barclays personal account. Payment was made within the UK banking faster payments scheme.

I have a receipt on my statement to prove payment, my bank are producing a Trace report to show payment delivery. The bank account details they gave me are correct and I've verified them as a valid account to receive payments under the scheme.

They, however, are claiming they never got the money.

Anyone got any thoughts or advice?

Thanks
Andrew.

 

[AndrewEardley]

If the payment went via FPS then they will have arrived in the account details that you quoted; there is nowhere else they could have gone. If those account details aren't valid; it would have rejected back to your account.

You will need to wait for the trace report that will come through which will show that the funds arrived at the destination account; and what that account number is.

I would suggest that the other person is trying it on; or has missed the payment in the account. Alternatively; you have transposed some of the account number or used a different sort code and the funds are sat in a third parties account!

Transfers sent via FPS don't sit in limbo anywhere (like they do with BACS) they usually arrive in the recipients account very quickly after they leave yours account! (usually seconds; but exceptionally an hour or two later)

 

[Big G]

Simply forward them the evidence from your bank showing the payment was sent to them. It is then up to them to take the details to there bank and they will then trace it at there end.

 

[AndrewEardley]

It is the remitting bank that has to initiate that trace, not the receiving bank

 

[Lentinus]

Just be aware that if you have transposed numbers and it has gone to a valid acc no. You will have a hell of a job getting it back. Happened to me 3.5K sent, one number wrong but it was a valid acc no. Never got it back. The banks just said it was the other bank that had to help and they wouldn't.

 

[AndrewEardley]

It is difficult to get the money back if it has gone to a third parties account; and speed is very much important!

If the error is spotted quickly and your bank can contact the other bank can be contacted quickly; then they may (however they don't have to) remove the funds from the third parties account and return it.

In all honesty; they are likely to say no as they hold no mandate to do so; and will just say they will write a letter to the customer requesting permission to correct the error and remove the funds. They can force the other customers hand and insist but that takes time.

Lentinus - its not impossible to recover the funds; and the bank should have done more to help you!

 

[MrAB]

Thanks for the input.

I know I got the right account number and I've verified it. I also have the receipt of the transaction and a trace report from my bank. If the other party were to maintain their stance could they go to a small claims court and if they did, would the above evidence be enough proof?

Thanks for the help.

 

[AndrewEardley]

I would expect that the trace report is sufficient to evidence that the money reached the correct account.

I would also expect that a judge would ask to see the bank statements for the account to verify that the money wasn't received.

I know it might be obvious but have you ask the company to verify that they are checking the correct account

 

[MrAB]

OK, thanks for that. It's actually an individuals account so I'm pretty sure it's the only one. When they said they hadn't received payment I wrote back saying it had been made, waited a few days (to allow for banking delays) and then wrote to them again to ask them to acknowledge that they have now received payment but I've not had a reply at all to that email. I suppose I can either assume that their lack of response means they have received it but just don't want to communicate with me or maybe they are maintaining their position of non receipt?

 

[AndrewEardley]

Personally, I would put it to bed until they come back to you.

They have probably realised that they had it all along and don't want to look stupid by admitting it. If they were maintaining their position; I would think they would reply to you in some fashion.

You have the evidence you need; keep it just in case; and get on with life