standing orders

[cherryelm]

could someone please answer me some questions about banking.i had a standing order with barclays to pay my daughter her pocket money to her nat west account last month the money left my account on the 19 but did not reach her account until the 3rd. both banks are blaming each other for the 12 day delay. as a result of the delay my daughter became overdrawn for 2 days then the money went into her account(late) and the charges they have applied have left her with no money. who is responsible and what should i expect, thank you

[compman]

This is an awkward one. I assume this was not the first payment being made and it had been running smoothly for some time. Unlike a direct debit, the onus is on Barclays to make the payment correctly, using the correct NatWest sort code and your daughter's account number.

I know it's time consuming, but you need firstly to ensure Barclays made the payment correctly and on time. Tell them because of the delay that incurred, charges were applied. Ask for the proof that this was paid and to put it in writing to you.

Provided Barclays can do this, then the blame will lay with NatWest. But if they can't, then you need to press Barclays for repayment of any charges incurred by your daughter, but show them proof of the charges, so they can't wriggle out of paying.

Now if Barclays can show you there was no error on their part, then you will need to put pressure on NatWest. Ask them to prove to you on what day they received the standing order payment. Was it received late, or did they receive it on time, but initially pay it to an incorrect account perhaps.

In reality, standing orders should be safer than direct debits, because the instruction is made to the bank whereas with direct debits, you're giving permission to a company to help themselves to your money.

Whatever you do don't stand by while each bank blames the other, one of them is in the wrong, and when you dicover which one then press at the very least for a refund of charges plus you could try for a payment for all the hassle involved

[compman]

http://www.bankingcode.org.uk/pdfdocs/BANKING% 20CODE.pdf

Further to my previous answer go to this site. It's an online edition of the Banking Code, suscribed to by most major banks.

Go to Page 2, Section 15 - Complaints, where I think you will find some useful information.

The Banking Code is the bible for banks, and they really have to adhere to it, to avoid the FSA coming down on them like a ton of bricks.

Best wishes in getting things sorted.