Money sent to a non-existant bank account and paypal extremely unhelpful ???

[AzzamS]

It has been apparent [from paypal since they stated that this was done from my computer] that I set up a bank sort code and bank account in January 2010.  The sort code for the bank account in correct but the bank account is not since I can not match the last four digits to any of my accounts.

Also the 2 deposits were put in the account when setting up but I did not verify these at all. 

On the 16th July 2010 I did a withdrawal to that bank account for £568.32

On the 4th August 2010 I did a withdrawal to that bank account for £850

When attempting to check if the money had been deposited in the bank I realised that the account was incorrect and possible non-existant. 

So the three mistakes I made [according to paypal] add an [1]  incorrect bank account, [2] not verify deposit and [3] sent monies to this bank account.

The sort-code of the bank is one that is in my town but the last four digits viewable are of an account that I do not own.  I contacted the bank in question and they can not do anything whatsoever without the full 8 digits of the bank account.

I have been back and forth with PayPal for the last month.  Firstly adviced of a reversal that will take upto 14 days, upon completion of these they would conduct a trace.

I have sent in on numerous occassions a cover letter and copies of an alternative bank account that I have now added onto PayPal although I have been advised and still advised by PayPal agents to send then copies of the bank statement for the actual bank the monies was sent to.  I can not make it anymore clearer to them that I do own this bank account in the first place to send them any bank statements. 

Further I get random emails that add to the confusion about withdrawals that are not even relevant to my account ie. the transaction have nothing to do with me [I think they are just sending them to the wrong email address].  But then I receive emails asking me to send in cover letter and bank statements so they can start the trace [like they have not received a copy from me yet??] it just adds to all the confusion. 

Now I simply do not know what to do. 

On one-hand I am told that if the withdrawal transactions are complete then the money must have gone to an actual account. 

I am wondering if anyone has faced this situation before similar to what has occurred to me and was able to trace the money?

To be honest I feel like crying 😞  on one side because of my own negligence and the lack of support from PayPal and HSBC [the bank in question]

[PayPal_john]

Hi AzzamS,

i'll contact you offline about this.

If anyone else is reading and are interested i'll quickly answer some of the general issues raised here

1) You do not need to confirm your bank to withdraw money

2) PayPal will withdraw the funds to whatever information is entered on the system. Usually if the information is wrong then after about 14 days the funds are bounced back to us.

However, this is not always the case, the bank make the decision on whether they will accept the funds or not. If they accept them then PayPal would be unlikely to be able to gain ownership of the funds and force them to be returned to your account, you'd have to contact them to trace the withdrawal.

[AzzamS]

Money has been found PHEW. 

Can I address one issue for paypal? you stated:

2) PayPal will withdraw the funds to whatever information is entered on the system. Usually if the information is wrong then after about 14 days the funds are bounced back to us.

Understood, however the money went to my sister-in-laws account which was a TSB account, but paypal displayed the added bank as HSBC on the backend [I assume this was the name given when adding the account] this added to the confusion since I was chasing a HSBC account.  So if either PayPal actually do a sortcode match [many companies do this] whereby once the sortcode is added it does a search asks for a validation of the bank [usually just the name and location] and also maybe a popup to the effect as you are adding on a bank account what you have written above ie.

"PayPal will withdraw the funds to whatever information is entered on the system.  A bank makes the decision on whether they will accept the funds for withdrawal, if you enter information incorrect this could delay the process of withdrawal" 

Something to that effect. 

But Britsh Gas [ I worked for them} can actually do a sortcode and account match to the person in question, of course I understand that this may not be applicable since people withdraw to all types of accounts and like that flexibility but some things that  ensure that we [or should I say I ] are putting in the details correctly should be implemented

[PayPal_john]

Hi Azzams, good to here the problem has been sorted !

In regards to your replies, I don't think PayPal does a sort-code match like you describe, it simply adds the details as we are told (as long as they are in a valid format) but maybe such a system should be implemented to avoid these situations. I believe there may be an issue in that when you add your bank you are not immediately setting up a Direct Debit so we may not have the facility to such a check but I'll pass it on nonetheless.

The pop-up is a good idea and is much more likely to be implemented, although it may look unnecessarily like a disclaimer (which people dislike) or a warning that something is likely to go wrong (which is not the case). Still though, if the system isn't clear then it should be changed so i'll see what can be done.

[PaulDoran]

I have had a similar problem, where i accidently entered the last four digits wrong on my bank account number when transferring funds from m paypal to my bank. I realised the mistake immediately and contacted paypal. I am concerned that the money will be lost. I have contacted Paypal on many occassions but seem to get a standard reply about a 14 day bounce back. But on the otherhand i have received emails to say the transaction has completed and that i would have to cancel the DDI from my bank. But how can this be done when the moneys where transferred to the wrong bank account. Please can you help, do you think my money will be recovered. Thanking you in advance.

[Cwinter91]

I've had the same issue!   I have contacted both paypal and my bank with regards to the missing money. I recieved an email from paypal saying that my bank had rejected the money due to account or sort code issues. I accidently put the wrong sort code only the last two digits the wrong way round. 

Paypal have closed my claim as they say my bank hasnt reposonded yet. I went into my local branch and they spoke to paypal customer services who said the issue and money was found and will be returned but hasnt!

I REALLLY DON'T KNOW WHAT TO DO....