Standing order lodged incorrectly to another customers a/c and their a/c has now been cleared out

gnf_ireland said:

Finally, I would ask AIB formally why the SO was not automatically cancelled after it was failed a number of times. I worked on the SEPA implementation for a company and the business rule that was suggested we implement by the bank was if we got back an error stating "account closed" or "account does not exist" the Direct Debit is automatically cancelled. It seems odd they would continue to process it after it failed for that reason. For reasons like insufficient funds you would only cancel it if it failed 3 times in a row - for example.
Also did AIB ever alert you to the fact the SO was failing ?

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The op knew the so was failing because it was returned to the op's account every month. Also I am not sure if AIB have the authority to cancel a standing order initiated by one of their customers?

emeralds said:

Also I am not sure if AIB have the authority to cancel a standing order initiated by one of their customers?

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I know for Direct Debits, the company has the right to cancel the DD if it fails for a variety of reasons.

The SO failed because the account did not exist - I would say that's a pretty good reason to cancel an SO and advise the customer of such. Similarly, if the account was closed, would they continue indefinitely to try lodge money onto a closed account and never alert the customer

As I said, not 100% sure on the rules on SO, but it is perfectly acceptable for a company to cancel a DD in a large number of cases.

Freddie said:

Brendan I think I remember you making a statement on here before about not commenting if wasn't going to be of help with a posters problem. I fail to see how you couldn't have understood what I said. I spent a lot of time writing that initial post to make it as clear and unambiguous as I could, acknowledging how stupid I had been. If you have nothing constructive to add please don't reply to me again.

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Hi Freddie

The first part of your original post was very clear.

But then I got the impression that you seemed to think that KBC might have some liability. So I thought that maybe I had misunderstood something.

It's essential when trying to solve a problem that you identify the cause and don't waste time trying to blame someone else who did not cause the problem.

So all I was trying to do was to establish that I had read what you had written correctly.

I would then have pointed out that it was not KBC's fault. That you should not waste time thinking about whether they were to blame or not.

Then go to the Gardai or whatever.

Brendan

Brendan your question was - Do I understand the following points, you didn't elaborate any further

Brendan Burgess said:

Do I understand this correctly?

• You set up a standing order to transfer money from your AIB account to KBC and it bounced back.This went on for a few months.

• And you did nothing about it?

Brendan

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how could that have been any clearer from my original post

Freddie said:

• I set up a monthly standing order from my AIB current a/c to another a/c I have with KBC. The details of the standing order were incorrect so the money was bounced back to my AIB current a/c for a few months.

• The a/c details I had used in the standing order were for a KBC account that didn’t exist yet. I know now, I should have cancelled the standing order the 1st time it was bounce back to my AIB current a/c but I didn’t and this was very stupid of me, but as the money was coming back in I just let it run.

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This is off topic now and I'm sure I'll be seen as the pedant here. As per the advice I'll contact AIB and the Gardai. The assistant manager I have been dealing with in KBC offered to put in a formal complaint on this for me, I have taken up the offer.