bank refusing to repay money banked in error

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katherine

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Post by katherine » Thu Feb 15, 2007 12:51 pm
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An IVA is in place and has been agreed by all creditors. In error, funds were paid into one of the bank accounts under the IVA, and the bank in question is refusing to return it - either to debtor or to the Supervisor. It maintains that because they are owed money, it can keep the funds. Is this correct? Should not any funds received (in error or otherwise) be handed to the Supervisor as the bank have already agreed to accept pro rata'd payments which it accepted the IVA agreement? Or can the bank keep it and put it towards the debt owed?
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MelanieGiles

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Post by MelanieGiles » Thu Feb 15, 2007 2:53 pm
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Not if the money was paid after the commencement of the IVA. It will need to be returned. Surely your Supervisor is on the case with this point? Why were the funds paid in in error?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk
Regards, Melanie Giles, Insolvency Practitioner
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neverending

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Post by neverending » Fri Feb 16, 2007 12:32 am
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I am in an IVA and exactly the same thing happened to me.
Do not waste time with letters from your IP to the bank.Go straight to the banking ombudsman and I guarantee your bank will change its tune once they receive corrospondence from the ombudsman.Also insist on some extra money for your troubles.
Your bank is in the wrong............100%
Andy Davie
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