Misplaced £2,500: Challenges in Reclaiming a Wrongful Bank Transfer in Australia

A mistake in a bank transfer has left me struggling to recover about £2,500 that was sent to the wrong account in June.

My wife and I, along with some Australian friends, were organizing an unforgettable trip to South America through a travel agency in Australia. After finalizing our plans, the agency requested a deposit of A$5,120. We decided to make this payment online from our HSBC account to the agency’s account at ANZ Bank located in Commercial Road, Fortitude Valley, Queensland. We were aware that HSBC does not take any responsibility for errors occurring during online transactions.

While processing the payment, we correctly entered the payee name and account number, but mistakenly selected the National Australia Bank (NAB) instead of ANZ. This error likely stemmed from the presence of NAB’s name and address in the bank options that HSBC provided. Consequently, the payment was accepted by NAB even though the travel agency does not hold an account there, meaning the payment could not be directed to the intended recipient.

As a result, approximately £2,500 has been misallocated, and HSBC has indicated that they are unable to assist in correcting this mistake, directing us instead to the Financial Ombudsman. My wife and I have been HSBC Premier account holders for over three decades, maintaining close to £400,000 in our accounts. We are deeply dissatisfied with the customer service and hope you can provide guidance and, if fitting, support in urging HSBC to take additional measures in helping us reclaim the incorrectly transferred international payment.

Jill’s Response

Banks’ capability to recover misdirected payments is limited. They can communicate with the receiving bank (NAB, in this case) to explain the situation and request a return of the funds. However, if NAB refuses to return the payment, there is little that either bank can do. They also cannot disclose the identity of the recipient without a court order, which would require you to seek legal action to attempt recovery. HSBC did make contact with NAB, but was informed that they had not received permission to debit the sum of A$5,120 from the recipient’s account.

Typically, for an Australian bank account to receive a payment, the full name of the recipient, a BSB (akin to a sort code), account number, and bank details must be provided. For international payments, a Swift code identifying the bank is also necessary. You mentioned that your travel agent has no association with NAB, which should have prevented the funds from being directed inappropriately.

After reaching out again to NAB regarding the legal steps needed to retrieve the funds in Australia, it seems that this provoked NAB to take action, resulting in them contacting HSBC with the news that the money could actually be returned.

It remains unclear whether the incorrect recipient consented to return the funds, or if NAB simply covered the expense, but within two days of my follow-up, £2,378 was credited back to your account. You noted: “We suffered a minor loss of £121.69 due to fees and currency conversion rates, but we prefer to emphasize to others the necessity of vigilance when conducting online transfers, as they may not receive assistance from their bank in correcting mistakes.”

Ongoing Billing Issues with Octopus Energy

I am retired and fortunate enough to spend part of the year living abroad. In December 2021, I purchased a two-bedroom flat with communal heating and hot water, to which I pay over £5,500 annually, whether I am present or not. The flat previously had its own gas boiler and gas supply from Shell; however, I had these removed, opting to avoid multiple bills.

On the day of purchase, I initiated an electricity-only account with Ovo, while simultaneously battling with Shell to cancel the gas account, which continued to bill me for standing charges despite not using their gas. Eventually, that account was closed.

After renovating the flat, focusing on insulation and radiator upgrades, everything functioned well following my move there two years ago.

However, starting in May this year, I began receiving letters from Octopus Energy regarding a supposed new gas supply account for my flat. Initially thinking this was a case of mistaken identity, I ignored the first two letters. Upon receiving the third, I contacted Octopus to clarify that I had not established any such account, as I do not have a gas supply with them; my heating is entirely community-based, and they must have made an error. I was assured that letters would cease.

Since then, I have been bombarded with bills for escalating standing charges despite not using any gas. Despite numerous calls and emails to Octopus, I have remained compliant and transparent with my issue. I even provided requested photos of the old gas meter, yet the correspondence continues. Eventually, Octopus stated they necessary access to visit my property, and I have agreed, but arranging this appointment has proven difficult as I have been abroad since June. I was advised to attempt to book closer to my return date.

As I continue to be overseas, I grow increasingly anxious, as I have worked hard to maintain an excellent credit rating. I have always been diligent with my payments, have no mortgage, and pay off my credit cards entirely each month. Recently, I experienced a downgrade in my credit rating to ‘good’ by Experian, which has caused me significant distress. My outreach to Octopus regarding this issue has gone unacknowledged.

Today, I received a notice from a collection agency, which has left me frightened about potential actions it could take against me. I am struggling to demonstrate that I am not a customer of Octopus; please assist me.

Jill’s Response

You were likely unaware that Octopus acquired Shell and its customer accounts in December 2023, subsequently migrating these accounts to their platform beginning in early 2024, resulting in the unexpected correspondence from Octopus. I suspected your issue stemmed from Shell’s previous mismanagement, so I prompted Octopus to clarify why it believed you owed standing charges despite Shell having marked the account as closed two years ago.

Octopus informed me that Shell did not cap the gas supply to your flat or remove the meter from the national database. Thus, when they assumed control of Shell’s accounts, they were led to believe a meter was active at the property and commenced charging for estimated usage and standing fees. The supply has now been capped, and the meter taken off record, which will halt any future charges.

Octopus has cleared your account of £193 in charges due to the protracted resolution of your issue, and any adverse payment markers have been eliminated from your credit records, as “you should not face penalties due to Shell’s mismanagement.” Additionally, Octopus has provided you with £100 in compensation.

Discrepancies in Compensation from EasyJet

We have encountered an issue with easyJet following our flight from Alicante to Gatwick on April 20.

Our group of four couples received information that our return flight was delayed due to mechanical issues impacting the aircraft that had yet to depart from Gatwick.

In an effort to mitigate overbooking, easyJet requested that we separate and take alternative flights that same day. We reluctantly complied. While our six traveling companions received £390 each in compensation, my wife and I were compensated only £260 each. We have spent nearly four months trying to obtain clarification from easyJet regarding this discrepancy.

Jill’s Response

I asked easyJet to look into why you and your wife received £260 less than your friends for the same disruption experienced when changing flights.

They replied that the necessity to replace the original plane due to a technical fault meant a smaller aircraft was utilized, resulting in overbooking and prompting easyJet to seek volunteers willing to accept alternate travel arrangements for compensation.

A handling agent at Gatwick assigned to process your flight changes incorrectly applied a compensation code for your booking, unlike that of your companions, which led to the shortfall.

EasyJet has since rectified this error, and you will now receive the full £780 that you are owed.