AIB error - missing months salary

[tonymontana]

I work in a small company (7 employees) for the past number of years and recently noticed that my salary for the month of April 2010 never reached my account.

After bringing this to the attention of the finance person and joint owner of our company she showed me the ledgers, proving that the payment was sent from the company a/c to AIB (deals with the company transactions). She then called AIB to find out more info. AIB confirmed that the payment went out of their a/c and delivered to my Bank.

My company owner pretty much washed her hands of the matter and put me in direct contact with the branch of AIB that the company banks with. After much toing and froing it transpired that the issue was AIB had used an incorrect sort code. They said they would speak to the owner of my company and get back to me. The latest update I recieved over a week ago was that AIB were trying to trace the payment and would get back to me with an update.

They seem to be completely dragging their heals on this, fobbing me off and completely trivializing the matter by placing zero urgency on it. Are they telling me lies? I don't understand how the money could have gone to a someone else's account. The details AIB had on the payment were My Name, My Account No and a Sort Code that was one digit out! It would surely be the mother of all coincidences if a person to match those stats existed, therefore the payment would have failed right? If it didn't go to me it couldn't have gone to anyone right?

I suppose technically I could have this out with my employer and put the pressure on them to get this sorted. The problem is this I know that has potential to create an unworkable atmosphere at work and therefore is something I need to avoid. While my employer has been of very little help, this would seem to be an AIB problem. I am now at a stage where I really need that payment. My question is where can I go from here? Can I take my grievance somewhere to put pressure on AIB to reimburse me.

-- Apologies moderators if this post is in the wrong forum, please move as appropriate

 

[Mpsox]

When banks are making payments, they do what is called a modulus check on the sortcode and account number, in effect they perform a mathamatical calculation on the 6 digits on the sort code and 8 on the account number and if they get a certain answer, then it is a valid account. (not neccessarily the account it was meant for, mearly a valid account)

It is perfectly feasible that if the wrong sortcode was used, that the transaction could still pass the mod checking and if so, be posted to another customers account. An alternative is that it could have passed the mod check and be posted to an account that has not been assigned to a customer, or, if it failed the check, posted to an internal suspense account as an error.

Depending on the circumstances, and given that this happened 18 months ago, it can take some time for these to be traced. In particuler, since another bank was involved, they will have to write out to the other bank, who will have to try and trace the payment at their end, then confirm back what happened before AIB comes back to you.

However, having said all of that, given that AIB have admitted that the error was theirs (and ask your employer to get this in writing), they should be putting you right and sorting out the issue with the other bank in the background. Of course, that is all assuming what your employer is telling you is the truth and that the error was not their fault

 

[wbbs]

Could easily happen, if the sort code was for a valid branch which I presume it was then it could have gone to an account with the same account number in that branch. Account numbers are not unique they can be duplicated in different branches, the sort codes would be different. The name would not matter at all as the transaction is not checked by a person, it is done solely on the account number and sort code.

 

[Brendan Burgess]

Hi Tony

This seems very odd indeed.

How were the payments made? By electronic funds transfer or using some form of manual payment document?

If it was by electronic funds transfer, there isn't much scope for it to go wrong.

Given that it was over a year ago, I think it's going to take you some time to sort out.

We set up the payment information for a contract employee and he was paid ok the first month.
The second month, he didn't receive the money although we sent it.

He went crazy and was extremely rude accusing the payroll person of all sorts of incompetence. As he was so nasty, I investigated it as it made no sense at all as we had not changed the information.

I checked the email from him giving us the bank account details. He had sent us the wrong information and so we input the wrong information. On the first payment, Ulster Bank, his bank, intervened and directed it to the right account. They did not intervene the second time, so he did not get paid.

Brendan

 

[Brussels]

Was this transaction electronic or paper. If it was electronic the payment instruction would have been issued by your employer and your employer should be able to tell you what sort code and account number the payment was sent to. Do you know if the sort code that was used was a valid one.

 

[Mpsox]

I checked the email from him giving us the bank account details. He had sent us the wrong information and so we input the wrong information. On the first payment, Ulster Bank, his bank, intervened and directed it to the right account. They did not intervene the second time, so he did not get paid.

Brendan

On IPSO.ie you can check if the information given by someone is valid, by inputting the sortcode and account number into an online tool. It won't tell you if it is the right account for the person, but it will tell you if it is valid or not

 

[onq]

My question is where can I go from here? Can I take my grievance somewhere to put pressure on AIB to reimburse me.

Your employer cannot simply wash his hands of this.
He has a duty to pay you reasonable reimbursement for your work.
The fact that the bank has broken the chain of payment is neither here nor there.
However I completely understand that you wish to avoid unpleasantness at your workplace.

Considering writing to both your employer and the bank

That is, writing to the bank, copying the letter to your accounts department and recording the facts as you were led to believe. Ask the bank to immediately direct the correct amount to your account. Tell them that the delay thus far has been on their side and further delay is unacceptable.

Request the bank to confirm by return IN WRITING when they are going to re-direct the payment or make a separate payment in lieu. Tell them you have the full support of your employer in this matter, but that as you are no facing financial hardship you may have to report the matter to the financial services ombudsman if the bank does not sort it out in a timely manner.

Be polite but firm and ask for a date by which you can expect to see the money in your account.

ONQ.