SALLY SORTS IT: HSBC error cost our social club £6,000

I was secretary of the Cheltenham Royal Antediluvian Order of Buffaloes (Grand Lodge of England) Club And Institute from about 2005 until it closed in May 2014.

It was essentially a social and networking club and we held events to raise money for charities.

A special meeting of all 46 full members was held where it was decided, due to financial difficulties, to close the club and sell the building and furnishings to pay off creditors and layoffs and distribute the proceeds among the members.

During the shutdown, we contacted our bank, HSBC, to change the account address to mine as the building the club was in was to be demolished.

In June 2021 I received a letter from HSBC, addressed to the club, informing us that the club owes us £3,361.77 plus compensatory interest of £2,869.83 – a total of £6,231.60 after an assessment.

In January of this year, I went to the local branch to find out how this amount could be paid. I was given a phone number to call, but I couldn’t get through.

I spent several months trying to get help to resolve this dilemma, until finally I was told to write the check to the social club, which no longer exists.

I was suggested to open a new account online in the name of the club. I had a lot of difficulties, including answering a question about how many staff the club would have and what the turnover would be, so I stopped. Looks like I can’t open an account without lying.

No one in HSBC will help me. I’d love to forget about it all, but if I did and the members found out, I don’t know what they’d say. And either way, with the cost of living, I’m sure some of them would appreciate their share. It drives me crazy.

CS, Cheltenham.

Sally Hamilton replies: A bank error in your favor is desirable in the game of Monopoly. But in your case it has become a bureaucratic nightmare.

You had to start a tricky game to get hold of the money owed HSBC and then divide it among 46 members – or in some cases their loved ones, as you found out, 11 have sadly passed away.

These headaches all came from HSBC charging incorrect fees on the community’s current accounts between 2005 and 2020.

I asked HSBC what could be done. Initially, it asked you to arrange a meeting with as many surviving ex-members as could be gathered, where it could be agreed that you would receive the money – with the minutes forwarded to the bank. The bank suggested that this could be done via Zoom.

But you rightly said that this was not feasible. Instead, you drafted a letter and made sure it was signed by five surviving members, all of whom attest to your honesty as the club’s long-standing secretary and agree to receive the distribution fee. Incredibly, the bank told you this was not enough.

I got back in and said I thought you did everything you could to fix this problem.

Finally, the bank accepted the signed note and you paid the money. You then asked for a checkbook so you could hand out the 45 payments of £135.

When it arrived, you found it only contained 25 checks, so you had to send another one.

You said that with every check you would send a letter with the background of the recipients, including the loved ones of the deceased members.

I congratulate you on your efforts, although I suspect that much of your own share of the distribution has been swallowed up in telephone and stamp bills.

A spokesman for HSBC UK said: ‘We are sorry that CS and the Cheltenham RAOB Club were experiencing difficulties in obtaining a refund from the bank.

“If an organization that owes a refund doesn’t have an open account to accept payments, we need legal proof that that organization’s remaining assets can be transferred elsewhere.

“After CS has provided us with sufficient evidence, we have now deposited the money into his account.”

Can’t get my lump sum after postponement of pension

Until the beginning of this year, I opted to postpone my state pension for a period of more than 12.5 years.

In January I contacted the Ministry of Work and Pension to arrange that I finally collect my weekly AOW benefit and the deferred amount.

I have successfully received the pension, but have not heard anything about my lump sum payment.

A pension forecast from two years ago suggested I would receive £78,000 pre-tax. I’ve passed all the necessary security checks and called the DWP weekly, but get no response and promised callbacks never come true.

I desperately need this money now, both due to financial difficulties and daily rising costs, including utility bills.

SF, Tarbert.

Sally Hamilton replies: When you reached state pension age more than 12 years ago you were in the fortunate position of not needing AOW as you had an income from an NHS pension and your husband was earning too. However, you told me that your situation has recently changed.

You unfortunately lost your husband four years ago and now live with your daughter. Money is tight and you, like so many others, are faced with skyrocketing electricity bills, the latest being £2,000. You decided it was time to apply for your AOW.

After sending several emails, it seemed like your questions fell on deaf ears, so I stepped in to find out what happened to your lump sum.

This prompted action by the deferral team, who contacted you shortly after to say the money was finally on its way.

Even better news was that it comes to £89,000 before taxes. The net amount of € 71,500 will be in your account shortly.

A DWP spokesperson said: “We apologize for the delay in finalizing SF’s claim. We have now paid her a lump sum and have spoken to her to confirm this.’

You told me you are delighted and thanked me for my involvement.

• Write to Sally Hamilton at Sally Sorts It, Money Mail, Northcliffe House, 2 Derry Street, London W8 5TT or email sally@dailymail.co.uk — provide phone number, address and a note addressed to the offending organization giving them permission to talk to Sally Hamilton. Please do not send original documents as we cannot take any responsibility for them. The Daily Mail cannot accept any legal responsibility for answers given.