My Bank has recalled a standing order that was legitimally paid into my account. They say that they have repaid the payment to the sender and now I have to send them a cheque. Is this correct and can they just take the funds from my account?

[Really_Annoyed]

[ummmm]

Are they asking for a cheque from a different account to clear an overdraft?

[Really_Annoyed]

As yet the bank hasn't taken the money from my account. The account is not overdrawn or a loan account. It was a standing order set up by me ex to my current account. They have given him the money back, but wish me to send a cheque to reimburse them. I wish I could afford to write it off. Have already advised the bank I won't be sending the cheque as the money is owed to me. They just saying they not getting involved. But as far as I can see they have already involved themselves, by giving him the money back. Will just have to wait and see how this plays out I guess.

[ubasses]

Normally an instruction to cancel a standing order should received the day before it is due to be debited. It sounds as if someone has accepted his instructions on the Monday when they would still have had the chance to reverse it, without the credit appearing on your statement, but messed up. They have then been in a position where they had to refund him but cannot debit you without your permission. I am making some assumptions here as I have been retired 7 years and systems could have changed. You would aslo both have to Bank in the same place for both transactions to go through on the same day.

[Really_Annoyed]

Thanks Ubasses.
We both bank in the same bank. That is why I am dubias at them saying that he cancelled the standing order on the Monday. They could have xferred it back. Also looking at my terms and conditions, it says a standing order needs to be cancelled up to one full working day before it is due to be paid. This would mean he would have had to go in on Friday to cancel it.

[vivandorron]

R_A.....I really wish to be as helpful as possible with your problem and appreciate your having clarified that the account in question is not a Loan a/c. However, it would be of interest to myself and others, possibly, if the actual account was identified. Is it a term savings account into which a set sum has to deposited each month.?

At the moment I am visualising three accounts. Your Current a/c; Your Ex's
current a/c and, thirdly, the account into which money was paid-in and the sum involved has now been paid-out, as a refund to the depositor.

Ron.

[boxtops]

Why do you think that, ron? I think it's 2 separate current accounts, nothingmore complicated.

[cathfromsaron]

they certainly can 'pull back' anything that shouldn't go out, but usually once you see it there it's too late!

what does the bank want you to repay it for?

[vivandorron]

P.S.I have re-read your posting and have noted that the account into which money was being paid is in fact your current account.

In which case the Bank does not have any problem and do not need to be reimbursed anything. Surely the Bank is not expecting you to write a cheque on your current account and thereby complicate matters even further.

Ron.

[Really_Annoyed]

thanks everyone for comments. Yes it is just two current accounts. They have already refunded the money to my ex and do expect me to write a cheque from my current account. I have to wait until Monday to see what they decide. My ex personally went into the branch to set up the account so how don't see how they can say the payment was paid into my account in error.. If only it was so easy to recall payments made to BT and Scottish Gas etc......

[percypineapple]

I haven't read all the postings, but must just say that a nasty bank lady told me that they could reverse a payment from your account for up to three months after the money was credited. so, the point i was making is that the banks can do what they like with your account. you must call them, you will probably speak to a 16 year old who has no experience of life, and the will be inpartial, so just do it and don't worry, they are only people.

[factor-fiction]

I’m not sure we can have the full picture here. Surely if the bank felt it had the right to recall the standing order it would simply take the funds back from the account rather than ask you to write them a cheque.

[vivandorron]

factor30....That's the way I see it. Furthermore, no way can you give a credit amount to a current account by issuing a cheque which is drawn on that account.....Which R_A has intimated that the Bank has requested.

Ron.

[boxtops]

exactly ron - if they wanted the money, which is in the same account as the cheque book, they'd just take it.

[factor-fiction]

I think, vivandorron, that the OP means that the bank wants him to write a cheque payable to the bank rather than to his own account.
It all sounds odd to me though- I am pretty sure we don't have the full picture.

[ubasses]

This why I say the Bank has probably made a mistake. The ex has a standing order to Really's account which he has cancelled. Either he did not cancel it in time or the bank forgot to action his instructions in time. Once the credit has arrived in her account they cannot just debit her. They need her authority which is why they are asking for a cheque, as it sounds like they have already refunded the ex.
If they had done the job properly they could have reversed the whole transaction without it appearing on either account.

[vivandorron]

factor30...It's also odd to me and the picture is certainly out of focus. So much so that, at one stage, I thought there were three accounts involved. However, if there is only the one and that has not been overdrawn, there is no reason for the lady involved to do anything....The Bank merely has to adjust figures and present them on a Statement to her.

Ron.

[Skyline D]

I'm really not sure why so many people don't follow this. The rights and wrongs of it are up for debate. What happened, and what the bank is asking, is completely simple.

Bank paid a standing order from A's account to B's in accordance with instructions but is now saying that in fact it paid it in error because the standing order was cancelled sufficiently far ahead to stop payment. As a result they have refunded A with the money from their own funds (not taken it back out of B's account) but are asking B to acknowledge they shouldn't have received it and refund them by cheque.

It's that simple. B thinks that A couldn't possibly have notified the bank sufficiently far ahead to stop the order but in reality can't possibly know that.

However, as others have said, if the order really was paid in error I would think they would have the right to debit the money back off the account directly and not require a cheque. I'd dig my heels in if I was B and wait to see what happens when you don't repay them. I have no doubt that if the bank have the right to debit it directly then they will. If they don't they'll write it off, it won't be worth pursuing I presume.

[factor-fiction]

I agree skyline- although that is just what some of us thought we had been saying was the case.

[factor-fiction]

Hi Really_Annoyed.
I was wondering whether there had been any developments on this

[vivandorron]

It would be interesting to hear of the progress which R_A has made in the issue concerned.

Ron.