HSBC - refund paid to the Crown

[troika]

Had a letter from HSBC. The Ltd co we wound up last year is due a refund, so it goes to the Crown. Apparently the reason for the refund is because we didn’t have a relationship manager, our credit / savings balances were put on a very low rate default product and were not provided access to the correct product which paid a higher rate. This goes back to 2009. They suggest I apply to reclaim the money from the Crown. It’s under £500 and there is a £300 fee with no guarantee, so that’s pointless.

My finger therefore points to the bank. Have they identified and rectified the error in a reasonable timeframe (12 years)? Should we have been informed that they were investigating this issue? Anyone had any experience of this? My gut feel is it’s a waste of time, but it’s the principle more than the amount which annoys me.

[Doofus]

troika said:

Had a letter from HSBC. The Ltd co we wound up last year is due a refund, so it goes to the Crown. Apparently the reason for the refund is because we didn’t have a relationship manager, our credit / savings balances were put on a very low rate default product and were not provided access to the correct product which paid a higher rate. This goes back to 2009. They suggest I apply to reclaim the money from the Crown. It’s under £500 and there is a £300 fee with no guarantee, so that’s pointless.

My finger therefore points to the bank. Have they identified and rectified the error in a reasonable timeframe (12 years)? Should we have been informed that they were investigating this issue? Anyone had any experience of this? My gut feel is it’s a waste of time, but it’s the principle more than the amount which annoys me.

Are you sure they haven't just paid over the tax on the higher interest?

[troika]

Doofus said:

Are you sure they haven't just paid over the tax on the higher interest?

No, I spoke to them and they said it’s the additional interest which the company should have received on Directors savings account deposits.

[NickCQ]

That's limited liability for you, it cuts both ways. Nice little earner for Brenda though.
I assume you would not be that chuffed if a creditor came out of the woodwork and attached liability to you years after winding up the company?

[troika]

NickCQ said:

That's limited liability for you, it cuts both ways. Nice little earner for Brenda though.
I assume you would not be that chuffed if a creditor came out of the woodwork and attached liability to you years after winding up the company?

Agreed. My point is that it’s reasonable to expect the bank error to be resolved in less than 12 years, in which case the company would have received the refund. In any case we should have been notified of the issue. Still, as you say, a nice earner for Rishi. I’m sure it will go on something useful such as servicing debt…