Customer paid into wrong account
Discussion
So I have 2 limited companies.
One is insolvent and slowly dying, the other doing well.
Customer pays for a repair into the older insolvent account. Money now taken into the bank which is overdrawn and Natwest saying they can't refund it as overdrawn and are saying Santander will have to do a drawback.
Santander are saying that money has gone to right person so have shut the case. Not sure customer has told them its Ltd companies.
My argument with Natwest is that the money simply does not belong to the Ltd company so why on earth can they decide to bloody keep it!
One is insolvent and slowly dying, the other doing well.
Customer pays for a repair into the older insolvent account. Money now taken into the bank which is overdrawn and Natwest saying they can't refund it as overdrawn and are saying Santander will have to do a drawback.
Santander are saying that money has gone to right person so have shut the case. Not sure customer has told them its Ltd companies.
My argument with Natwest is that the money simply does not belong to the Ltd company so why on earth can they decide to bloody keep it!
Why not pay off your debt to the bank?
Perhaps I’m being overly simplistic or ignorant to the norms of business but you’re in debt to the bank, your customer involuntarily paid some of that.
Am I missing something ?
If you really want to couldn’t you just re-extend the overdraft and get the money back out?
Perhaps I’m being overly simplistic or ignorant to the norms of business but you’re in debt to the bank, your customer involuntarily paid some of that.
Am I missing something ?
If you really want to couldn’t you just re-extend the overdraft and get the money back out?
Jamie VTS said:
Why not pay off your debt to the bank?
Perhaps I’m being overly simplistic or ignorant to the norms of business but you’re in debt to the bank, your customer involuntarily paid some of that.
Am I missing something ?
If you really want to couldn’t you just re-extend the overdraft and get the money back out?
Ltd 1 is in debt to the bank. Ltd 2 isn't. OP isn't. Perhaps I’m being overly simplistic or ignorant to the norms of business but you’re in debt to the bank, your customer involuntarily paid some of that.
Am I missing something ?
If you really want to couldn’t you just re-extend the overdraft and get the money back out?
Ltd 2 was due some money from Customer X. Customer X paid it to Ltd 1. It should have been paid to Ltd 2. Ltd 1 cannot keep the money, as it isn't its.
Jamie VTS said:
Why not pay off your debt to the bank?
Perhaps I’m being overly simplistic or ignorant to the norms of business but you’re in debt to the bank, your customer involuntarily paid some of that.
Am I missing something ?
If you really want to couldn’t you just re-extend the overdraft and get the money back out?
Yes, you are missing everything.Perhaps I’m being overly simplistic or ignorant to the norms of business but you’re in debt to the bank, your customer involuntarily paid some of that.
Am I missing something ?
If you really want to couldn’t you just re-extend the overdraft and get the money back out?
The whole point of a limited liability company is that it is a legal entity in its own right. The company is in debt to the bank, not the OP. Beyond paying for shares, shareholders have no other liabilities.
But it's reasonable to assume that the lending bank has a fixed and floating charge over the assets of the (non-trading) limited company, and has exercised that right. At face value a cash balance in the account would be a charged asset.
The lender has no interest in how the company obtained those funds. The shareholders of the (non-trading) limited company are at liberty to inject additional funds into the company to pay for lawyers to try to get the money back from the bank.
But in the real world the OP is more likely to succeed by contacting the customer through the currently trading company to inform them that they haven't paid the bill to the company yet. If they paid the wrong company that's their mistake. Unless it wasn't.
The lender has no interest in how the company obtained those funds. The shareholders of the (non-trading) limited company are at liberty to inject additional funds into the company to pay for lawyers to try to get the money back from the bank.
But in the real world the OP is more likely to succeed by contacting the customer through the currently trading company to inform them that they haven't paid the bill to the company yet. If they paid the wrong company that's their mistake. Unless it wasn't.
Josho said:
Santander are saying that money has gone to right person so have shut the case. Not sure customer has told them its Ltd companies.
But isn't the "person" the company? So it has not gone to the right person?Sounds like the customer has told them they're two accounts for the same entity, not two entities with the same owner.
How easy is this to get wrong? Do you own Bob & Mick's Automotive Services as well as Mick & Bob's Auto Servicing?
Are they separate parallel companies, or is one a new wrapper to replace the same physical business that existed as the previous company until recently?
How did the customer get it mixed up?
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