Bank has lost my money!
Discussion
Bank in question is Starling.
Payment from an overseas client was received early January. These are part of series of payments that the bank was previously advised of as we had an issue with an earlier payment from the same client. To avoid further issues they asked for information about the contract, future payments and a copy of the contract - all supplied. For context, The client is a national government of a developed nation.
Received notification that regs required them to make some checks that would take four days before funds are deposited into my account.
We're now at 15 days, 7 online 'help' chats, four phone calls and enough confirmations of 'escalation' to worry the crew of the ISS.
This afternoon I received a notification that the payment was approved but before the funds were deposited an 'internal corespondent' (whatever that is) declined the payment. They are unable to determine why or what has happened to that payment. It may have been returned to the client but given this is a government, it's not possible for them to just look at their account so the bank needs to tell me what they've done with it!
It's a fair chunk of money - around £40k.
I'm giving them until COB on Friday and then...............
That's why I'm here. What can I do? Banking Ombudsman? Solicitor?
Payment from an overseas client was received early January. These are part of series of payments that the bank was previously advised of as we had an issue with an earlier payment from the same client. To avoid further issues they asked for information about the contract, future payments and a copy of the contract - all supplied. For context, The client is a national government of a developed nation.
Received notification that regs required them to make some checks that would take four days before funds are deposited into my account.
We're now at 15 days, 7 online 'help' chats, four phone calls and enough confirmations of 'escalation' to worry the crew of the ISS.
This afternoon I received a notification that the payment was approved but before the funds were deposited an 'internal corespondent' (whatever that is) declined the payment. They are unable to determine why or what has happened to that payment. It may have been returned to the client but given this is a government, it's not possible for them to just look at their account so the bank needs to tell me what they've done with it!
It's a fair chunk of money - around £40k.
I'm giving them until COB on Friday and then...............
That's why I'm here. What can I do? Banking Ombudsman? Solicitor?
Drumroll said:
So the bank hasn't actually lost your money.
Based on the information I've had from them and in the absence of anything else, I'd say they have.The money was paid to me. They made some checks before the funds become available to me. The money isn't in my account and they cannot say why I've not received the funds or where it is! Until I hear otherwise, I'd say that's a fairly good definition of 'lost'.
Bit rusty, so hopefully have the codes/sequence right, but you should be able to address it via interbank SWIFT messages.
Ask the sender to request a copy of the SWIFT confirmation (MT103) for the transaction.
Provide a copy of that to your bank.
Your (iirc) bank can then send a MT195 querying non receipt of funds.
I'd wager that it'll be held up with a correspondent bank or has yet to be applied by your own bank - the MT103 will allow it to be located (or the original message to be corrected if it's not correct).
Ask the sender to request a copy of the SWIFT confirmation (MT103) for the transaction.
Provide a copy of that to your bank.
Your (iirc) bank can then send a MT195 querying non receipt of funds.
I'd wager that it'll be held up with a correspondent bank or has yet to be applied by your own bank - the MT103 will allow it to be located (or the original message to be corrected if it's not correct).
StevieBee said:
Drumroll said:
So the bank hasn't actually lost your money.
Based on the information I've had from them and in the absence of anything else, I'd say they have.The money was paid to me. They made some checks before the funds become available to me. The money isn't in my account and they cannot say why I've not received the funds or where it is! Until I hear otherwise, I'd say that's a fairly good definition of 'lost'.
Based on my experience with banking there is a risk team holding on to this and making checks. They will deal with it in their own good time and then it will be resolved with no apology or explanation….or, they find a genuine problem. If there is no problem it will pop out the other end…eventually.
Thanks chaps.
I do recognise that the use of the word 'lost' is unlikely to be fully accurate - but from my perspective, right here and now, that's how it seems to me.
This seems a good to route to follow:
I do recognise that the use of the word 'lost' is unlikely to be fully accurate - but from my perspective, right here and now, that's how it seems to me.
This seems a good to route to follow:
LooneyTunes said:
Bit rusty, so hopefully have the codes/sequence right, but you should be able to address it via interbank SWIFT messages.
Ask the sender to request a copy of the SWIFT confirmation (MT103) for the transaction.
Provide a copy of that to your bank.
Your (iirc) bank can then send a MT195 querying non receipt of funds.
I'd wager that it'll be held up with a correspondent bank or has yet to be applied by your own bank - the MT103 will allow it to be located (or the original message to be corrected if it's not correct).
Thank you - will give that a go!Ask the sender to request a copy of the SWIFT confirmation (MT103) for the transaction.
Provide a copy of that to your bank.
Your (iirc) bank can then send a MT195 querying non receipt of funds.
I'd wager that it'll be held up with a correspondent bank or has yet to be applied by your own bank - the MT103 will allow it to be located (or the original message to be corrected if it's not correct).
jeremyc said:
How was it resolved last time?
The two differ in that then the money was returned to the client - as it turns out because I failed to respond to a request for more information (hidden in a myriad of a million notifications I get daily!). So that's on me. But following that and on the bank's request, I provided all the information about the contract, future payments and probity of the funds so that future issues would be avoided and the money would be paid in without issue.The issue here is that despite providing that, the money still hasn't reached the account and then cannot tell me why or where it's gone.
It's probably sitting with the correspondent bank.
Currently (I believe) they can hold that money for up to 28 days before returning it to the sender, or releasing it to you.
This is down to this countries anti money laundering laws.
It's held for checks. (apparently).
You get your counterparty at the foreign government to get the transfer transaction number.
Send that to your bank. And that should then prompt the correspondent bank to move one way or the other.
I'm hoping that I don't have a similar issue, as yesterday I should have received a large transfer from a Swiss Bank.
Santander (my bank) haven't credited it to my account yet.
So we have started the procedure I mentioned above just now (well ten minutes ago).
Currently (I believe) they can hold that money for up to 28 days before returning it to the sender, or releasing it to you.
This is down to this countries anti money laundering laws.
It's held for checks. (apparently).
You get your counterparty at the foreign government to get the transfer transaction number.
Send that to your bank. And that should then prompt the correspondent bank to move one way or the other.
I'm hoping that I don't have a similar issue, as yesterday I should have received a large transfer from a Swiss Bank.
Santander (my bank) haven't credited it to my account yet.
So we have started the procedure I mentioned above just now (well ten minutes ago).
Geoffcapes said:
Currently (I believe) they can hold that money for up to 28 days before returning it to the sender, or releasing it to you.
This is down to this countries anti money laundering laws.
It's held for checks. (apparently).
You get your counterparty at the foreign government to get the transfer transaction number.
Send that to your bank. And that should then prompt the correspondent bank to move one way or the other.
Sometimes it can be a case that it gets trapped because the sender/their bank didn’t provide all of the detail needed for it to be correctly allocated, with the effect that it hangs around in an intermediate account until it can be allocated or is returned. This is down to this countries anti money laundering laws.
It's held for checks. (apparently).
You get your counterparty at the foreign government to get the transfer transaction number.
Send that to your bank. And that should then prompt the correspondent bank to move one way or the other.
I’m associated with a company who import a lot of disability / funeral equipment from China for sale in the UK.
They changed their bank to Starling and had nothing but trouble with international payments and things going wrong. They never had it with Santander prior to the move, or with Barclays who they then moved to.
They changed their bank to Starling and had nothing but trouble with international payments and things going wrong. They never had it with Santander prior to the move, or with Barclays who they then moved to.
ADJimbo said:
They changed their bank to Starling and had nothing but trouble with international payments and things going wrong. They never had it with Santander prior to the move, or with Barclays who they then moved to.
I'm beginning to recognise this myself.Time for a 'proper' bank I think!
ADJimbo said:
I m associated with a company who import a lot of disability / funeral equipment from China for sale in the UK.
They changed their bank to Starling and had nothing but trouble with international payments and things going wrong. They never had it with Santander prior to the move, or with Barclays who they then moved to.
I bank with Santander. They're fine up to £500k, after that, they're a pain in the arse!They changed their bank to Starling and had nothing but trouble with international payments and things going wrong. They never had it with Santander prior to the move, or with Barclays who they then moved to.
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