icesave have lost my parents 6k by direct debit urgent help needed

[chardonnay]

hi, any help on this will be greatly received. my mum and dad have an account with icesave (who use dd to transfer money to and from their accounts). when my dad set up the direct debit he accidently added an extra digit to the account number of his nominated cahoot account. they then decided to transfer money from icesave to cahoot. they transferred £6000 but because of the extra digit this was rejected by cahoot. this should have bounced back to their icesave account - but it hasn't and they are now 6k down. they are worried sick.

 

it appears someone at icesave has manually tried to force the dd through and have amended the dd by taking one of the extra digits in the account number and using it to change it to another cahoot sort code. this sort code has been confirmed by cahoot to be for their credit cards but say they do not have any credit cards with this account number (still with me:???: )

 

instead of using the direct debit guarantee, icesave are trying to blame my parents and saying they also changed the sort code and the account number - this isn't possible.

 

i would have thought icesave would have to just do a direct debit indemnity but they seem unwilling to help and are saying ask cahoot for the money (cahoot haven't got it but say they will do a trace when they get details from icesave)

 

icesave are now following their complaints procedure and have to respond by tomorrow. they still have not produced a copy of the trace.

 

this money appears to be lost in cyber space - can anyone help?

[buzby]

As you discovered the DD Guarantee is worthless in this and moist other situations. The problem is the initial error was by your folks and the incorrect a/c details. This will make claiming compensation/interest well night impossible.

 

If the firm do not respond with the requested information of the trace as to where they've put the money, you have several routes of complaint,

 

APACS - the UK Payments Association

BBA - British Bankers' Association - Home

Financial Ombudsman Service

[chardonnay]

thanks for the info buzby. the problem is the incorrect account does not exist as it is a digit too long. this should have automatically bounced back/ been rejected.

 

icesave did not send a letter by today as promised.

 

can anyone else help

[chardonnay]

also were not discussing compensation or interest lost yet, we are discussing that icesave seem to have stolen my parents 6000 pounds:mad:

[chardonnay]

icesave are now denying the following which is what they told my parents the trace had found it appears someone at icesave has manually tried to force the dd through and have amended the dd by taking one of the extra digits in the account number and using it to change it to another cahoot sort code. this sort code has been confirmed by cahoot to be for their credit cards but say they do not have any credit cards with this account number (still with me )

[buzby]

Sorry, that doesn't make sense. Icesave cannot 'force anything through'. They can only credit accounts that they have details for - this is not 'DD' but a BACS transfer. So referring to the DD guarantee would be meaningless. If Icesave have supposedly credited money to your father's account and he has not received it, that's their problem not his - even if he gave them the wrong information.

[Guest Bert52]

Direct debits can be altered by the company you have set an account up with. It is standing orders that cannot be.

 

Any electronic means of payment can be traced too.

 

Other than that I don't really understand the OP.

[demon_x_slash]

I think that the OP is trying to say that:

 

1. Parents put one extra digit on account number by mistake

 

2. When incorrect account number has reached an advisor at icesave, the advisor, realising that the account number was too long, has transposed a number from the account number to the (correct) sort code

 

3. The sort code and account number thus used is still incorrect for the OP's parents, but apparently a valid one as the transaction was accepted, but Cahoot can find no record of this 'new' account on their system. Therefore the £6000 has 'disappeared'.

 

Is that correct, chardonnay?

[chardonnay]

demonx slash - you have got points 1 and 2 correct

 

 

to clarify

 

1. parents nominated their cahoot account for d/d per icesave's instructions

 

2. parents added an extra 6 making the account number too long

 

3. parents requested transfer by d/d (system icesave use) to their cahoot account of £6000.

 

4. cahoot couldn't accept it as it was a digit longer than their accounts

 

5. money has left parents icesave account end of march and has not reached their cahoot account.

 

6. icesave say cahoot have the funds - cahoot say they don't but will investigate when they receive a trace from icesave

 

7. icesave say the results of the trace show When incorrect account number has reached an advisor at icesave, the advisor, realising that the account number was too long, has transposed a number from the account number to another cahoot sort code making the account number the right length

 

8. cahoot say this new sort code is for their credit cards but the new account number is not for any of their accounts so they have still not had the funds

 

9. icesave are following their complaints procedure and say they will send parents a letter by 20/4/07 - letter did not arrive

 

10. parents demand letter is sent special delivery, including a copy of the trace done by icesave.

 

11. icesave are now denying point 7.

 

12. icesave they are going to work with cahoot to try to sort it. they say that their financial dept state that the direct debit guarantee only covers inbound payments not outgoing payments!