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Debt Relief – Insolvency – Bankruptcy Information » Insolvency » Is there anything he can do to get the money back or repaid?

Is there anything he can do to get the money back or repaid?

My brother works for a large chain of supermarkets. About a year after he began working for them they gave him some shares, he signed some documents and they sent them off to the share company. The supermarket have given him extra shares every year by way of a bonus and my brother has been saving them up.
Last year, we lost our mother and as my brother had been living with her and as if that wasn’t bad enough, without going into it too much, his finances were hit hard and he ended up on a Debt Relief Order (a form of insolvency).
Some of his debt was connected to his bank and the insolvency service were going to be dealing with that so they advised him to use a different bank.
He changed to a different bank and passed his new details to the finance department at the supermarket.
Earlier this month, my brother decided to sell his shares to free up a little cash for household repairs so he asked about it at work and was advised how much they were worth (a modest amount really but a lot of money to him as things have been tough) and that part of them would be paid through his wages and part of them would be paid directly to his bank account.
He got a letter from the shares department this morning telling him that the portion of his shares to be paid directly into his bank account had been paid on 16th August, he was pleased until he noticed that they had paid them into his old bank account and he called the bank to be told that the money had been paid towards his debt so effectively, he has lost it.

Now, it just so happens that his Debt Relief Order ends today and he was looking forward to it marking the beginning of a new start but it has now been scarred by this.

He can’t understand how the bank could just take his money like that, after all, what was the point of having the debt relief order if they were still able to do that and shouldn’t the insolvency service have had the account frozen or had some sort of deal in place with the bank? (the bank wouldn’t allow him to close his account when he switched to another one as he had debt connected to it)

Also, all his dealings connected to his shares has been dealt with through the finance office at his work but when he phoned the shares department they told him that when he changed his bank details, the finance office were not obliged to pass those details to them and he should have changed his details with them himself, separately.

He was never told this by the finance office and, since all other dealings had been through the finance office and he had never had to contact the shares department himself at any point, it never even occurred to him that it was his responsibility. So surely the supermarket should warn employees to change their details separately if they know they’re not going to do it otherwise how would they know?

So, he has pretty much decided to chalk it up to experience and forget about the money and he feels fortunate that he still has some to come through his wage but I just feel for him and wonder whether there may still be something he could do about this. He could really do with some good luck for a change!
Ed Fox, I do see your point on both and my brother accepts this now but I think the supermarket should make it clear as he was going through a difficult time (as people do) and it simply didn’t occur to him, so in his case, not common sense.
Lily B Talus. Thanks, I was worried when I read that so I spoke to him, it’s OK though because He declared them at the beginning and someone called the Official receiver said they would be disregarded. Also, he contacted the insolvency practitioner before he cashed them and was told that, as they were worth less than £500 and the money is to be used for essential household repairs and given the fact that it’s the final week of his DRO, it wont cause any problems.

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3 Responses to "Is there anything he can do to get the money back or repaid?"

  1. Ed Fox says:
    How can you blame the bank. The money coming in was a legitimate transaction.
    Of course the finance department are not obliged in any way to pass details to the shares office. That part is surely common sense
  2. safdenny says:
    Ed Fox is correct, if a little harsh.
    However maybe your brother should let the finance office know what happened so it doesnt happen to anyone else who doesnt realise. It seems that because he went through them for all other management of his shares, he has just assumed that it was dealt with. Not everybody can be expected to know how these things are done and he has learned an expensive lesson here.

    It’s a shame that somebody can read what your brother has been through and not even try to empathise just a little.

    I also dont think he is trying to blame the bank but rather, the insolvency service perhaps? if that is the case maybe he should call them as it should have been made clear what would happen with his old account.
    In any case, perhaps your brother should try to get all the facts in future, not being mean, just think he should know that he is responsible for finding out all the facts about stuff so this sort of thing doesn’t keep happening.
    I wish him a happy future x

  3. Lily B Talus says:
    Your brother needs to get advice as he should have declared ownership of shares at the start of the D.R.O….so he’s committed fraud and could get in trouble for this. The bank have done the right thing by taking his money..this is perfectly legal and the employer isn’t in the wrong , but it does mean that the D.R.O. has been suspended…as he came into some money while it was running…this all should go to the official receiver and be passed to the creditors…so now he’s liable for all that he owed at the beginning of the debt process plus interest and charges incurred in the last 12 months…so, it’s all a bit of a mess, he should contact C.C.C.S. via the internet (free, confidential ) and see if this can be sorted…he doesn’t want a criminal conviction if at all possible

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