Recalling funds - bank

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deco87

Registered User
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Hello
A bank recalled funds that were sent to a share account- ( by iban)
This share account is in a credit union -
The bank recalled the electronic transfer
When the funds had been forwarded to a different institution-
In order to complete recall , the shares were removed to do this - without consent -
This has caused considerable distress-
Can a bank recall funds that are not there as they have been sent on elsewhere electronically ? Advice appreciated
Thank you
Dec
 
Well , I think that the funds were actually recalled the same day or day before the funds were sent on. There was no funds in the account the day they were re called as they removed 6k of my shares to do the recall- delay because of working from home - processing may be issue
 
I'm still none the wiser.

Payer sent money from their bank on Day 1. Let's say on Monday. What day they they initiate the recall?

deco87 said:
There was no funds in the account the day they were re called as they removed 6k of my
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Well, there was obviously funds if they were able to remove them?
Your account only has a balance. There's no distinction between 'this 6,000' and all the other money.
 
That’s the thing - I think I’m on a loser with this - there is no distinction - other the money they took was my shares - the 6 k had been sent to a different institution -I’ll update when I’ve more info - just the ramifications of taking my shares is substantial as they were insured in case of death ( credit union)
 
deco87 said:
That’s the thing - I think I’m on a loser with this - there is no distinction - other the money they took was my shares - the 6 k had been sent to a different institution -I’ll update when I’ve more info - just the ramifications of taking my shares is substantial as they were insured in case of death ( credit union)
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The bank can make the request, but it is up to the CU to decide what to do with the request.... you beef is with the CU.
 
Did I understand this correctly

Your bank sent some of your funds to another institution - was this on your instructions? on the instructions of the other institution?

They then tried to reverse the transaction but sent the reversing instruction the the wrong institution?

There are so many unknowns here it is difficult to see who, if anyone, is at fault although your bank does seem to bear most of the responsibility
 
Jim2007 said:
The bank can make the request, but it is up to the CU to decide what to do with the request.... you beef is with the CU.
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I have had one very heated exchange with credit union earlier earlier over this - I am awaiting a call from manager in the morning - that’s very interesting. -the bank request - the credit union then decide what action to take - good to know - they took 60 percent of my shares that took me years to save - and just gave it to the bank - I’m so annoyed
 
jpd said:
Did I understand this correctly

Your bank sent some of your funds to another institution - was this on your instructions? on the instructions of the other institution?

They then tried to reverse the transaction but sent the reversing instruction the the wrong institution?

There are so many unknowns here it is difficult to see who, if anyone, is at fault although your bank does seem to bear most of the responsibility
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Sorry I had put a lot more information earlier but it was deleted - I tried to put in a short version to get it on here -
6k was sent to my share account - that had 10 K shares in it - i asked that the 6 k be sent on to another institution where I have an account - leaving the shares at 10 k-
That 6 k ( balance) appeared in the other institution- all well -
In the meantime (I was unaware ) the bank recalled the 6 k - as it had taken a while longer than usual to arrive to my share account - payer was concerned about this - bank re called it -
The credit union then sent 6 k back using that amount of my shares for that purpose -
Now my shares after years of saving are 6 k short -
My issue is this really - removing my shares without consent - I think when they saw that recall - they should have declined as they ( cu) had sent it on to another financial establishment -
 
I can see why you're annoyed at the recall, but can the 6k not be transferred back again? Assuming it can, you won't have suffered any loss.
 
Coldwarrior said:
I can see why you're annoyed at the recall, but can the 6k not be transferred back again? Assuming it can, you won't have suffered any loss.
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It's not very clear, but the issue doesn't appear to be the 6k, but the impact on the Life Savings insurance linked the the credit union share account. As the balance dropped, the insurance only covers the lower amount if the OP is over 55.
 
Your right there - it can - if you have shares in a share account - and you pass away ! The credit unions insurance will double it when you die ! Sorry - !!! That’s why I left the 10 there - for that purpose-
When the amount is being calculated they will only double it to the lowest amount that was in it ! Instead now of double the 10 ( which I wanted ) insurance will only the double 4 k now - as the credit unions has done this on me - I was in a position to do that for the kid - that’s why I am more annoyed with them
 
RedOnion said:
It's not very clear, but the issue doesn't appear to be the 6k, but the impact on the Life Savings insurance linked the the credit union share account. As the balance dropped, the insurance only covers the lower amount if the OP is over 55.
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100 percent correct thanks - I’d love to know what the cu regs are re using members shares like this
 
deco87 said:
Any idea is there rules / regs , re this.
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It's the SEPA rulebook.

If the recall was before the settlement had completed, the transfer is just cancelled. But after settlement, the beneficiary must be contacted before accepting a recall.

A recall is an unusual enough event for a bank to initiate. It's not something a credit union would see very often.
Maybe someone manually accepted it in error. Or it might be set up incorrectly as straight through processing and automatically accepted.

You'll have to ask the CU for a full explanation. You'll need to be specific in details of the sequence of what happened. And if the CU made a mistake, ask them to make it right.
 
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Thanks a mill - great to know - for my call tomorrow! The beneficiary must be contacted - would they be the payer in as such
 
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