Right, something very interesting to give you folks (well I find it interesting anyway)

I paid for a car insurance policy a full year upfront

I paid using my RBS card but I closed the account on 06-02-12, I then cancelled my car insurance and got a refund on the 26/02/12 (the insurance provider insisted on trying to refund to the bank card, although the account didn't exists they had to do it for money laundering purposes) which I understand as I work for the company that gave the refund

The bank accepted the refund and didn't bounce it back, so I approach the bank where the branch tried to locate the funds and got back saying I needed to speak to the insurers instead

I spoke to the insurers who then told me to speak to the bank (tossing and throwing between the two and tearing my hair out as you can imagine)

The Insurers also advised me to speak to Visa directly as they would most likely have the money and not RBS, so I spoke to Visa who confirmed they did provide my card but they have no access to funds etc, and that its my banking institute who should help me

I then put a complaint in to the bank and got a final written response a few days ago saying they cant do anything and that I again have to speak to my insurers

So, I complained against the company I work for and also now have a final written response saying the bank accepted the funds and also been provided with a refund receipt from the insurer

Who has my money and how can I get it back?

Its been 2 months now and I am still out of pocket £500

105 views, no help yet?

Anyone able to give any advice at all?

Right, something very interesting to give you folks (well I find it interesting anyway)

I paid for a car insurance policy a full year upfront

I paid using my RBS card but I closed the account on 06-02-12, I then cancelled my car insurance and got a refund on the 26/02/12 (the insurance provider insisted on trying to refund to the bank card, although the account didn't exists they had to do it for money laundering purposes) which I understand as I work for the company that gave the refund

The bank accepted the refund and didn't bounce it back, so I approach the bank where the branch tried to locate the funds and got back saying I needed to speak to the insurers instead

I spoke to the insurers who then told me to speak to the bank (tossing and throwing between the two and tearing my hair out as you can imagine)

The Insurers also advised me to speak to Visa directly as they would most likely have the money and not RBS, so I spoke to Visa who confirmed they did provide my card but they have no access to funds etc, and that its my banking institute who should help me

I then put a complaint in to the bank and got a final written response a few days ago saying they cant do anything and that I again have to speak to my insurers

So, I complained against the company I work for and also now have a final written response saying the bank accepted the funds and also been provided with a refund receipt from the insurer

Who has my money and how can I get it back?

Its been 2 months now and I am still out of pocket £500

Let the FOS sort it out?

It won't be quick but better than being passed back and forth between the two companies.

Was it a credit or debit card?

If a credit card can't you claim the cash back from visa under Section 75 of the Consumer Credit Act.

Thanks for the replies - Its was a Visa Debit

Im just confused how the banks are saying I need to claim back from the insurer, the insurer is saying visa, and Visa are saying RBS - Literally a complete circle of mixed communication

The insurers have a duty to repay you - your contract was with them. For once the bank is right - as its not really anything to do with them as you are no longer their customer. Why waste resources upon you?

Ask the insurers to send you a cheque, as you have no relationship with that bank any longer, and so will be unable to receive payment via a closed account.

The insurers will be stroppy - saying you are already repaid. The money laundering regs are to stop money laundering, not to stop valid repayments. Be prepared for some equally inane implied application of the law such as "its against data protection law".

It will end in your advising them you are about to issue a LBA and charge them for your time they are wasting, as a court will make them pay you without any money laundering concerns.

Then they will pay you.

Thanks Bang, thats the other thing I want to be careful with, I work for the insurance company too lol

Everything you have said has been taken on board though and will certainly look to see what I can do about all this

the only problem is the insurer has given me a printed form with an ARN number as proof the bank accepted the reund, how does that stand with the insurer still owing the funds?

The onus is still with the insurer, you haven't received the monies.

The insurer will have to argue the toss with the bank as the bank haven't fullfilled their part of the transaction by refunding you.

£10 to a penny that money will be found in the 'dormant a/c fund'. All banks have an account where any monies going through the BACs system which fail to reach the intended a/c are transferred into such a fund.

Did you agree to the bank being paid - or was it framed as the only option?

At least you can chase them during your work hours - so its their own time they are wasting.

All calls with the insurer are recorded

during the call with the manager I made him aware the bank account no longer existed, his reply was he has to attempt to refund the card used to pay for the insurance first for money laundering purposes, if the bank reject the payment they will then arrange to pay me another way (i,e cheque)

The payment wasnt rejected and thats where I am at with it all at the moment

As I mentioned I have also received final written responses from both the insurer and bank regarding the matter

Given the added complication of perhaps not wanting to upset your employer with threats of court, is there someone senior within your part of the company that might have a word on your behalf?

Might it be worth speaking to the FOS on the phone so you can go back to whoever should be refunding you and say 'The FOS said .....'

Sorry but this is becoming a bit silly. I have worked within Insurance accounts departments dealing with this type of issue, on more occasions than one would wish to.

All that needs to be done is to make a complaint to the Insurers accounts department that handle the payments. They will look at all the entries and they should be able to find out what has happened quite quickly.

The trouble is that many companies customer service staff are not trained in accounts. So when you speak to them, you get passed back and forward, with no answer. You need to get past the frontline staff and deal with the staff that actually administer the accounts.

I have spoken directly to accounts too - In my final written response from the insurer they sent me this:

According to my accounts department, this is enough for them to wipe their hands with the issue and advise me to change the bank

The bank needs to return it as the account is closed. Take that into a branch and speak very loudly about stolen money. Raise a formal complaint (they can do that on the computer then and there).

Ok that just shows the refund was sent. What it does not confirm is whether the bank sent it back, as they had no account to pay the money into.

My understanding is that a bank will hold a credit for up to 48 hours while they decide what they need to do with it. If at the end of 48 hours, they don't credit the money to an account, they will send it back to the originator. The Insurers may not have received this back against your policy account details and it will be sat on some suspense account waiting to be dealt with.

Check with the bank, what they did with the refund. If they did send it back to the originator, ask them to confirm when they did this and is there any reference which will help the originator trace the refund.

The bank literally have no idea about anything of this transaction (so they say)

They said as the account is closed there is 100% nothing they can do to trace anything pending or completed

So they say in their final written response anyway

Stressed.com

My point entirely. Take your evidence into a branch. Raise a FORMAL COMPLAINT. They have accepted funds against a closed account instead of returning it. Rather than play letter ping pong a face-to-face is in order. The staff are usually pretty helpful. any branch can help you. Insist they raise a formal complaint with you there, they can show you what's on the screen.

The bank literally have no idea about anything of this transaction (so they say)

 

They said as the account is closed there is 100% nothing they can do to trace anything pending or completed

 

So they say in their final written response anyway

 

Stressed.com

From experience 99 times out of 100, it is the Insurers that are sat on the money.

Banks these days are so strict with their accounting, that they would not hang on to the money. The bank staff may not be able to see the refund entry, if the banks systems have automatically returned the refund to the Insurers.

But do post back, when you have found the money.

I will keep you all posted

Would be nice to see if anyone else had experienced something similar before and what their outcome was

I will keep you all posted

 

Would be nice to see if anyone else had experienced something similar before and what their outcome was

I have dealt with countless numbers of similar cases and most of the time, I have found the money back on an account at the Insurers. Occasionally the bank had applied it to some account, waiting for the item to be looked at.

I don't know what systems your Insurers use, but with many IT systems they can perform a search using various criteria. They may be able to put a date range in and the sum of £488.19 to see what transactions debits and credits are showing for that amount. Doing this can also reveal whether the sum of £488.19 did come back and where the money had been put. So if a mistake had been made applying the refund to the wrong record, this would be picked up.

In my experience Insurers accounts departments have a book with all the contact telephone numbers for all the banks/building societies. We had to phone various banks on a regular basis to track down entries, so we could go back to a customer to find out what had happened in similar situations. Sometimes there was just a delay in the money coming back or there was some other issue. But it did not take very long to find out. Taking 2 months and then not being able to explain is a joke. In that situation, the Insurers are obliged to refund you the money, if you can evidence that you have not received the refund. Speak to the Insurers Customer Service Manager and explain that you don't want to involve the FOS, but they are leaving you with no alternative.

Which Insurers are you with ?

Thanks again for the reply,

I cant mention the insurers name as I work for them - Its company policy not to brand them in a bad way etc, so to mention them would put my position on the line

On Monday, I will have another chat with them and see what I can do

Have you thought about constructive dismissal? :D:D

lol, loving it Bang

Best not to go that route though

lol, loving it Bang

 

Best not to go that route though

You might want to remove your post with the Barclaycard statement showing the refund, if you do not want to be identified from the post. ( Dave ?) That is, if you have used your real name. Just a tip, but if you want to remain anonymous, don't use your real name, when using photobucket.

Another point, is that the FSA expect Banks/Insurers to have proper accounting processes. If they can't find nearly £500, this might worry the FSA enough for them to want to carry out an urgent inspection.