Paying money into a closed account - bank won't give back

[minkymonky]

My husband and I run a business. We employ some outside contractors and pay them on a monthly standing order of £50. Back in March 2011, our contractors told us they had changed their bank details so we began paying them into their new account. However, there was some confusion between the hubby and I and we didn't stop the standing order to their old account. We've realised the mistake and have been paying them twice every month since March. We've made sure the old Standing order has now been cancelled and asked Barclays to refund the money that has gone into the old and closed account. Barclays have "lost" the money and have claimed it's up to our contractors to pay us back. Our contractors say that they cannot access their old account and say that Barclays must pay it back. We're out of pocket to the tune of £300 and no-one will help us. We've got bank statements cleary showing the £50 payments being made into a bank account but this doesn't seem to count for anything with Barclays. They just don't seem bothered enough to give it the time of day.

What should we do?

[dpick]

Hi I have no legal knowledge of this but I would say that even though the account is closed the contractor should be able to get the bank to return the payments. I bet the contractors would have been onto the bank in a flash if you had only made the payment into the closed account.

 

dpick

[rebel11]

Thread moved.

[minkymonky]

It looks like our Contractors have some financial difficulties and have entered into an IVA. IT looks like the bank have siezed the money from the closed account and used it against the debt that the contractor has run up with them. Hence, Barclays won't give it back to us and our contractor doesn't have the money to give us either. We're witholding our £50 per month to them until the debt to us is paid as it's the only thing we can do really.

[rebel11]

Hi minky

 

Send them a SAR Request with bank details for all the accounts, they will send you all the data they hold. Templates are in the library. It will cost £10

they have 40 days to comply. Send it Recorded to Barclays Registered Office. It could shed light on who and where the payments have gone.

[toddle2u]

Send them a SAR Request with bank details for all the accounts, they will send you all the data they hold. Templates are in the library. It will cost £10

they have 40 days to comply. Send it Recorded to Barclays Registered Office. It could shed light on who and where the payments have gone.

Why would the OP want to waste another £10 when he knows exactly where the money has gone. The subbies have entered into a CVA/IVA and the OP is now an unsecured creditor.