Need advice on a Building Society dispute

sarrge2001 · 02-05-2007, 06:31 PM

Evening all - hopefully there is someone on here who has a working knowledge of banking that can offer advice.....

My ex-wife has banked a cheque that was issued in both names (account payee only). Cheque has cleared.

Her building society tell me the only way that could happen is if I signed across the cheque in the branch after showing photo ID.

BUT - uh oh - they now admit they made a mistake and allowed her to bank it WITHOUT following procedure......

They contacted her to get written permission to transfer 50% of the funds (cheque was for over $6,000) but of course she refused (suffice to say, we don't get on)

They have just rang me and told me that they can't reverse the transaction because she has already drawn down on some of the funds, but they have "frozen" 50% (that would be my 50%) and they will gladly transfer it to my account at another bank as soon as they receive a court order

See my problem???

I have to pay a lawyer to go and get a court order despite the fact that the issue is caused by their negligence in not following their own procedures (and banking procedures in general). Who pays THOSE legal fees - hmmmm - my guess is I do.

And another gripe - if it is so important that i prove my entitlement - why doesn't she have to as well - oh thats right - she's spent some of hers!!!

I've contacted the banking ombudsman - what a waste of time - they can only investigate complaints against MY bank regarding MY account.

Anyway - any advice would be greatly appreciated (preferably not the "break their legs" type advice).

Thanks in advance

johnnyb · 03-05-2007, 01:22 AM

call up the banking ombudman in your state

then call back the bank and tell them you have called the ombudsman

302XLS · 03-05-2007, 01:32 AM

a current affair would be the best bet, once they get a bit of bad publicity i'm sure they'd get you your money.

Felony · 03-05-2007, 09:44 AM

Ah women and banks gotta love them, poor bugger.....

4.9 EF Futura · 03-05-2007, 11:26 AM

OK, so im guessing that you dont have a direct relationship with this building society? You bank with someone else. It does make it a bit more complicated... the society has put themselves in a heck of a position here.

Write a letter to the CEO of the building society explaining the full story. Its a start. They should have a complaints procedure as well.

I would be demanding that the transaction be reversed at the building society's expense. Then they can re-do the transaction properly and you get your money. Then THEY can p*ss off to get a court order to have your ex wife give them their money back.

If there is NO other option but obtain a court order, request in writing that it be done at their expense. Actually no, demand it.

Do you know the issuer of the cheque? Tell them that the half-arsed building society cleared the cheque without appropriate signatories - they'll love that.

Seriously, go in there and make a scene - as this is ridiculous. Demand to speak to the executive in charge of member relationships or whatever title they go under.

matt-chops · 03-05-2007, 06:50 PM

In all seriousness, get a solicitor to write a letter to the building society. This is about the only way to get their attention... if you try and talk sense into them yourself you will just continue to be treated like a piece of crap and end up ****ed off with no result. A Solicitor will know how to word it properly but I think it should basiclly outline that you intend taking them to court for their negligent and illegal activities, and should you win they will be liable for your legal costs.

sarrge2001 · 03-05-2007, 07:23 PM

Thanks guys.

Ombudsman is a waste of time because they only investigate complaints regarding your own account - i don't bank with the credit union and it's not my account that is the problem.

Have dealt today with their complaints department......HA.....their opinion is that as I am not disputing her entitlement to the money she has got her 50% - it's only mine thats frozen because she has disputed it. And to top it off, i got told that I hadn't really been inconvenienced because if they hadn't cleared the cheque, i would have to negotiate with her anyway......LOL..... i pointed out that it may have been possible to negotiate with her but now they have rang her and told her half the money is frozen.......what a lovely phone call I got this morning........apparently it's all my fault......go figure. They decided to freeze the funds once they realised they had made an error.

According to legal aid i could possibly do it thru small claims court by taking the building society and her into court - but because she is involved it may have to go thru family court and depends on the charter of the company the money came from blah blah blah.....

Money is actually from a scholarship fund for my son - I've now offered to sign over the cheque rights if she agrees to the Credit Union transfering all the money to my son (which is where it SHOULD have gone in the first place........).

May be worth going back to the issuing company - ta - some good advice so far and I will be writing to the Credit Union CEO.

I post the outcome (if I get one)

Cheers

Van D · 03-05-2007, 07:39 PM

Wow, what a mole.

I know that didn't help the situation.. But wow.

dan.76 · 04-05-2007, 07:16 AM

would it help to open up an account with the credit union? maybe then they could transfer it easily to their own bank .also if the money is for your son have a trust account or similar set up to put it in so that it seems your wife is keeping money from the kids not from you, would make her look like the bad guy.

Ringo · 04-05-2007, 08:45 AM

Good luck Sarge...we brothers are right behind you!

The company I used to work for got ripped off by someone in the finance dept who was cashing cheques she had forged signatures on. She wasn't even the authorised signatory that the bank had on file! Over $8000 worth of fraud over 12 months.

Banks said to the boss that the cheque book should have been secured, fraudster shouldn't have had access to it and the forged signature? well they only check those if there is an issue? WTF?

Ended up getting legal. The bank? Starts with W end with a C....

4.9 EF Futura · 04-05-2007, 10:00 AM

Quote:

Originally Posted by Ringo

. She wasn't even the authorised signatory that the bank had on file! Over $8000 worth of fraud over 12 months.

This is the problem with modern day transactional banking. Phone & net banking are great... but the tellers forget the basics!!

We deal with another large bank here and the pimply kid behind the counter looked like a dog responding to a high frequency when i told him to go get the authorised signatory for the account. "The what, sir?"

sarrge2001 · 11-05-2007, 05:09 PM

Quick Update

Credit Union decided that as it was from a scholarship fund they could now freeze 100% of the money ("yes sir, i know we shouldn't have cashed it in the first place so now neither of you can touch it.....")

Then they rang the ex and said "unless you agree to sign it all over to your son, you will need a court order to unfreeze the funds"

He got his cheque yesterday!!!

So the end result was correct but I have a real problem with the way the credit union has acted - basically make a mistake and extort your way out of it!!!!!

Letter of complaint on its way!!!!!

Thanks for the advice......

Chilla · 11-05-2007, 05:25 PM

Hi Sarge, if you find yourself in a legal bind in the future, make your first port of call to the Clerk of Petty Sessions at the nearest Magistrates court. In person. You will get all the legal advice you need 'Free'.