1 May 2012

Money transfer errors on the rise, says Financial Ombudsman

Individuals are being advised to take care when moving funds from their bank account, following a rise in the number of complaints relating to money transfers.

According to new data, the Financial Ombudsman Service received 688 complaints in the last financial year about money transfers. This is up from the 529 grievances recorded in the previous year.

The ombudsman concluded that a range of mistakes were being made when transferring money via online banking, including customers entering the incorrect payment details.

Where an error does occur, the ombudsman said it was important for banks and their customers to act quickly to retrieve the missing funds.

‘It is inevitable that problems will sometimes arise,’ said Natalie Ceeney, in the service's information publication Ombudsman News.

‘We see a significant number of complaints involving money being transferred to an unknown third party by mistake. In some cases the money can be recalled, but this relies on the customer and the financial business acting quickly.’

Yet with fewer than half of complaints settled in the customers’ favour, the ombudsman stressed that the responsibility for identifying mistakes does not always lie with the bank.

The ombudsman also said it had dealt with arguments over fees and charges for sending money, delays and administration problems, and disputes over currency rates.

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