Ulster Bank "sits" on my money for a month, to my cost - comeback?

Jim2007 said:
Actually under SWIFT rules the bank has no choice but to return the money to the senders bank and this normally takes 3 or 4 weeks to wash out. And in most cases bank staff are not informed of such events.
Click to expand...
But they didn't do this, either. And the new URBPO rules won't be implemented until 1 July 2013. Any idea where I can find the existing rules? Each bank seems to do its own thing, as far as I can see.

Jim2007 said:
TBH I find the whole exercise amazing, you expect the bank to dedicate someone to do a whole lot of manual work on your behalf to ease the processing of moving to another bank, so that you can avoid paying for their services....... you have heard of the saying "There is not such thing as a free lunch", right?
Click to expand...
With respect, I have to question your logic, Jim. I don't feel I'm getting a "free lunch" from UB, PTSB, or any other bank. And the process of switching would have been far easier without their "services", as it turns out — they've messed up just about every possible detail of it, actually. If I had paid for this work, I'd be seeking a refund.

If I'm careful and manage my own accounts prudently, I can avoid current account transaction fees and standing charges, for the time being. In return, the bank gets the use of my money, month in, month out, for free. If I overdraw by a single cent, or miss a DD payment, or exceed my credit card limit, they have plenty of scope to (legitimately) hit me with charges far in excess of the real cost to them of my oversight.

A bit like Ryanair, when a customer loses or forgets their boarding pass (what was it Michael O'Leary called these people again?).

Banks offer a product into the marketplace because they feel it will — on balance — benefit their bottom line/deposits/market share. You make it sound almost as though you feel I've been taking advantage of poor old Ulster Bank?
 
DrMoriarty said:
You make it sound almost as though you feel I've been taking advantage of poor old Ulster Bank?
Click to expand...

No I think it is unrealistic to expect any bank to provide free services, most mainland European banks have much higher requirements before you qualify for free banking! For instance my bank here in Switzerland, requires a minimum daily balance of 25,000 on deposit.
 
The tax payer bailouts don't entitle us to free banking. Indeed, the banks are still in a gigantic hole, and are busy shedding staff and reducing services. Customer service was bad before. It is about to get horrible.
 
I'm with the great continental steamer on this one. He didn't instruct the bank to close his account, they closed it. He instructed them to switch DDs,SOs, etc . . . to another bank, per the standards and said he would advise when he wanted to close the account.

If they got his letter and there were too many words in it for them to understand or it contained a request they couldn't facilitate then they should have contacted him to point this out.

You can bet that if he had moved credit card and a charge for €3,000 came in, they wouldn't be sitting on it for weeks wondering where to send it.

I had a similar(ish) issue with BoI when a term account closed. I sent them a letter in advance of the closing saying what to do with the money (transfer it out of BoI) and they somehow managed to lose it & sit on my money. Then they lost the next instruction I sent. And they even managed to lose the 3rd one that I physically dropped into the branch. I was *not* happy. However, when they have your money there's very little you can do, other than (as DrM plans) lodging a formal complaint.

I've had similar money getting lost issues with AIB too, through my own fault. The fact that the branch apparently had *no* visibility into lost transaction was a surprise to me. I knew the amount, the date, the (incorrect) account number, the sort code, the sending account, everything and *still* they were unable to tell me for days where it was and when it was going back to the sender.

z
 
Well, I'm off on hols in a few days, so thought I'd post an update.

It's now been 38 days since the money left the Barclays UK account, and to date neither Barclays nor Ulster Bank can account for where it's gone. As a final resort, my UK counterpart has had no option but to issue a "tracing recall" from Barclays International Payments. This took over an hour to arrange, cost a further £25, has no upper time limit and "does not guarantee that the money will be recovered".

So I/we'll just have to wait until this unfolds and it becomes clear whether the fault lies with Barclays or Ulster Bank. From previous experience, I'd say it's probably the latter. In fact, I'd lay money on it — if I had the money! :(

Edit: I have to add, in fairness, that the local branch manager offered his apologies for the delay and has been very proactive and attentive throughout, remaining in regular email contact, etc. I just find it quite an eye-opener, as zag has commented above, that the bank has so little visibility/control over customer transactions. The guy referred this to what he described as "senior" customer care managers, and despite having every relevant detail, including the full transaction ID, they drew a complete blank. Unless of course it turns out that the whole error is on Barcays side and that the money never came near Ulster Bank... (which would surprise me because other international payments have been sent successfully).
 
Had a quick scan through this thread

It seems to me that for purposes of resolving this, you must separately address the core issues
1... Issues surrounding the closing of the account
2... Issues surrounding a credit transfer to a closed account

Banks are obliged to have formal complaints procedures, and a formal complaint presented to them must be independently (within the bank) examined, and must be responded to within a specified time. This is often the best way to get resolution of a problem. If you do not follow this procedure, then you will not have a complaint accepted by the Financial Ombudsman

Getting a refund for unused cheques should be a simple matter - all banks have a procedure for this. The fact that the account is closed should not inhibit that refund. There is no cost to the bank - the refund becomes a deduction for them from the next payment of medallion stamp duty.

In regard to the transfer of funds to a non-existent account, the normal Swift rules would return the payment very quickly to the payers account at Barclays. However, it might be helpful to read section 85 and particularly 86 of the Payment Services Regulations as follows:-

Payment transactions to payment account.

85. (1) Subject to paragraph (2), a payer’s payment service provider shall ensure that, after the time of receipt of a payment order, the amount of the relevant payment is credited to the payee’s payment service provider’s account by the end of the next business day.

(2) A payer and a payment service provider may agree on a period of no longer than 3 business days instead of the period specified in paragraph (1).

(3) Paragraph (2) and any agreement made in reliance on it cease to have effect at the end of 31 December 2011.

(4) The periods specified in paragraphs (1) and (2) are extended by one business day in relation to paper-initiated payment transactions.

(5) The payment service provider of the payee concerned shall value-date the payment and make the amount of the payment available to the payee’s payment account, in accordance with Regulation 88, after the payment service provider has received the funds.

(6) A payee’s payment service provider shall transmit a payment order initiated by or through the payee to the payer’s payment service provider concerned within the period agreed between the payee and the payee’s payment service provider so as to enable settlement, as far as direct debit is concerned, on the agreed due date.

Absence of payee’s payment account with the payment service provider.

86. Where a payee does not have a payment account with a payment service provider, a payment service provider who receives funds for the payee shall make the funds available to the payee within the period specified in or determined in accordance with Regulation 85.
 
You must log in or register to reply here.
Back
Top