HB paid into old account

[jacchris]

Hi

 

I updated my bank details via letter and phone call with local authority for my housing benefit payment, I also called 7 days from date of change to ensure that the payment would be credited to new account.

 

Despite LA confirming new details etc the payment was made to the old account, £150 of this amount was swallowed up on bank charges. The bank won't refund any of these payments and now I am in rent arrears.

 

I complained to LA and received a letter of apology in which they recognise the error and apologise for poor service received, they also claim that despite the error being their responsibility there is nothing else they can do.....can they do anything else?

[citizenB]

How had you left things with the old bank when you opened the parachute account ? Had you agreed a repayment plan or written asking for them to remove the charges citing hardship ?

 

I would have thought the LA could have recalled the payment - but not sure about that. I will try and find someone who can help/advise.

[jacchris]

Hi

 

I had already contacted the 'old' bank to advise that I would be unable to pay charges due to extreme hardship however they claimed that as a good will gesture I had already received a refund of charges this year and there was no option but to pay them.

 

thanks

[id6052]

I doubt the LA will be able to recall the payment.

 

You could try asking for: -

1. a Discretionary Housing Payment
   
2. compensation via official complaint route
   

[citizenB]

Ah righto.. I don't know what else you can do with that bank..

 

As regards the HB, I have left a message for others on the site team.

[rebel11]

Hi jacchris

 

You've got proof that your local council made an error that has caused you further 'hardship'.

 

Lodge a formal complaint with the LCO, explain what's happened (sent the money to the wrong account) , how the council have let you down (made error that resulted in payment being swallowed up by charges) and what you want them to do (compensate you).

 

http://www.lgo.org.uk/making-a-complaint/

 

--------------------------------------------------------------------------------------------------------------------------------------------------

 

It really doesn't matter if the bank has refunded charges before.

 

Write a Formal Letter of Complaint, mark it as such. Explain what's happened (payment made to wrong account), how they have let you down (payment swallowed up by charges) and what you want them to do (refund charges).

 

Explain that the banks actions go against the key principles of the Lending Code:-

 

http://www.lendingstandardsboard.org.uk/docs/lendingcode.pdf

 

Send it to the CEO, his/her email address can be located online.

 

Let us know how you get on.

[citizenB]

How soon did you notice the money had gone into the wrong account and make contact with the LA ?

[*RainbowTears*]

I had a sort of similar issue last month, but involved me paying money online into the wrong account.

 

I naturally thought I'd get the funds back in this case £125 & be able to send it to the correct account.

 

So I rang Barclays & asked them to return the funds back to me, as it was simply a case of me boobing up.

 

Barclays told me, that once funds have left & gone into A Another account they legally cannot go into that account to retrieve the money. They cited data protection & regulations that governed this.

 

They told me to contact the person who received the funds & just ask them for it back.

 

Nice & simple right?

 

No, as first of they legally don't have to give the money back to you & all depends on if they want to return it back.

 

In my case the persons account the £125 went into, they were willing to give me back the money BUT they were OD at the time to the tune of £123. So I had inadvertently cleared their OD & their account showed a £2 credit.

 

So the A Another rang Lloyds to see if they would be willing to send the £125 back to me as I had paid this money into their account in error.

 

Lloyds checked & came back with NO, as the account was OD so no funds available & that even though I'd made a mistake they could not retrieve money in any case. Citing same rules as Barclays did.

 

I lost my £125.

 

I also found out from both Barclays & Lloyds that even if someone paid say £10.000 (or any other kind of sum) into my account by mistake, they have no way of legally going into my account to retrieve the money or either making me return the money back.

 

Once the funds are in that's it!

 

Expensive lesson for me to learn but it could have been a whole lot worse..

 

It sucks as I had to pay out the £125 again as well (to correct account this time). So I double check from now on!!

[Lilly_Monroe]

I had a sort of similar issue last month, but involved me paying money online into the wrong account.

 

I naturally thought I'd get the funds back in this case £125 & be able to send it to the correct account.

 

So I rang Barclays & asked them to return the funds back to me, as it was simply a case of me boobing up.

 

Barclays told me, that once funds have left & gone into A Another account they legally cannot go into that account to retrieve the money. They cited data protection & regulations that governed this.

 

They told me to contact the person who received the funds & just ask them for it back.

 

Nice & simple right?

 

No, as first of they legally don't have to give the money back to you & all depends on if they want to return it back.

 

In my case the persons account the £125 went into, they were willing to give me back the money BUT they were OD at the time to the tune of £123. So I had inadvertently cleared their OD & their account showed a £2 credit.

 

So the A Another rang Lloyds to see if they would be willing to send the £125 back to me as I had paid this money into their account in error.

 

Lloyds checked & came back with NO, as the account was OD so no funds available & that even though I'd made a mistake they could not retrieve money in any case. Citing same rules as Barclays did.

 

I lost my £125.

 

I also found out from both Barclays & Lloyds that even if someone paid say £10.000 (or any other kind of sum) into my account by mistake, they have no way of legally going into my account to retrieve the money or either making me return the money back.

 

Once the funds are in that's it!

 

Expensive lesson for me to learn but it could have been a whole lot worse..

 

It sucks as I had to pay out the £125 again as well (to correct account this time). So I double check from now on!!

 

I have done similar, instead of paying £10 I added an extra 0.

I rang/wrote to my bank along with the company I overpaid, explaining that it had left me in debt it got me know where.

I contacted CAB and they said the same, the onus is on US and not to any outside company/person whatever.

Only if the company take extra from your account without notifying you can you claim it back (depends if this falls into that category) I suspect not as a bank can take money from your account (if within the same ownership) to pay off money they are owed - that is why it is advisable not to have all your money in one account, look at opening a post office on line account.

[jacchris]

Hi

 

I contacted LA @11 am on the day the 'error' was made, I asked if they could recall the payment as it had only been a matter of hours but they said this would not be possible instead they informed me on the call this was now an issue with me and the bank to settle, they advised this would be no problem as it woukd be illegal for the bank to use a housing benefit payment/rent cheque to reclaim charges?

The bank of course claimed that the charges were lawful and that any money credited to the account can be used to reclaim/recoup the full amount.

Thanks

[*RainbowTears*]

Hi

 

I contacted LA @11 am on the day the 'error' was made, I asked if they could recall the payment as it had only been a matter of hours but they said this would not be possible instead they informed me on the call this was now an issue with me and the bank to settle, they advised this would be no problem as it woukd be illegal for the bank to use a housing benefit payment/rent cheque to reclaim charges?

The bank of course claimed that the charges were lawful and that any money credited to the account can be used to reclaim/recoup the full amount.

Thanks

 

Your in a no win situation, as I was last month.

 

I lost my £125 & had no way of retrieving it back. The Bank charges swallowed up both our monies!

 

I'm sorry to hear that your in same boat as me, it's horrid & unfair!!

[rebel11]

Carry out the complaints in post 6. Let's see what they say.