A payment was made by an ex-employer of mine into an account that I hadn't used for two years. The sender of the payment contacted me in order to have the funds returned. When I first contacted HSBC by phone I was told that the account had been closed and although the situation was unusual the money should be returned to the originating account held at Lloyds TSB.

Two week later I received a letter from HSBC saying that

"We write with reference to a FAX dated 17th June 2009 from LloydsTSB Customer Care, enquiring about a payment which was sent to your account.

Please be advised that they have tried to credit your closed account with £680.00 on the 03 June 2009, and please note these funds have been used to cover your debt.

we would be grateful if you could contact (NAME) at Lloyds TSB Customer Care on 0845(NUMBER) and advise her of the same.

Should you require any further assistance, please contact us

Yours Sincerely...."

I received a second letter while I was away from home repeating the first with a copy of the fax attached.

I then replied to HSBC with the following letter.

"Reference: FREEPROD/LETOUT

Dear (NAME),

Thank you for your letters dated the 19th June and 2nd July 2009, regarding a payment sent to my closed account.

The now very unhappy Lloyds TSB account holder first made me aware of this payment on the 5thof June when it was realised that the transaction was made in error.

I attempted to log on to Internet banking then subsequently called I.B. helpdesk who informed me that the account was closed and normally the money would be returned to the sender within 10 days.

I then received your two letters when I arrived back from being away on the 3rd of July, which stated that the money had not been credited to my account or returned but been claimed towards the outstanding debt.

Can you please arrange for the total amount to be returned to the sender immediately."

I have not heard anything since and the money has not been transferred back into my ex-employers account.

Could I please receive some advice on how best to get HSBC to return the funds, as they were not meant for me in the first place?