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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 10244
Experience:  I have been practising for 30 years.
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An old aquaintence who lent me money last year, but because

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An old aquaintence who lent me money last year, but because I did not pay them back they have gone to their bank and made up a story and said they sold me a car and they did not receive the car.
Their bank has then blocked my account in my bank and alerted the fraud department.
The fraud department then said I had to prove that I did not sell him the car.
Well of course I could not do this as the car story was completely fabricated. They then said they could not unblock my account until he withdrew his complaint.
I then asked my bank why it had taken him so long to realise that he had not received the car if in fact this was true. They even had to admit that it did seem strange but explained that his bank had requested the block and had asked my bank to sign an indemnity form.
I managed to convince my old aquaintence to explain to the bank that my account should be unblocked. They only unblocked it because I said I was taking my old aquaintence and his bank to court based on the fact that they had no evidence of any car bought or sold.
After it had been unblocked my old aquaintence was able to tell me when I attempted to withdraw funds from my account ( surely this illegal - how can his bank tell him such confidential information)
Can you advise how I might go about taking both banks and my old aquaintence to court and getting some sort of compensation as it has literally cost me a few thousand based on the fact that I could not access funds in my account for over a week.
Customer: replied 1 year ago.
It has been more than 10 hours and I still have not had a response.

It is possible for you to prove and it’s possible for them to prove that they sold you a car (they did sell you a car) but it is impossible for you to prove that they didn’t.

The bank have acted completely unreasonably.

They had no right to block your account simply based upon someone else’s say-so unless someone else had a court order or the person that lent you the money paid you by debit card (withdrawing the money on debit card is different than paying by debit card)

There is no legal aid for the action you are planning.Unless you want to spend and risk lots more money going to court, which could cost thousands of pounds in legal costs because the bank will defend your action, I would suggest that you might want to complain to the Financial Ombudsman Service which is cost and risk free.

You have to exhausted the bank’s internal complaints procedure.

Can I clarify anything for you?

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We can still exchange emails.

Best wishes.


F E Smith and 3 other Law Specialists are ready to help you
Customer: replied 1 year ago.
There is no proof that a car was sold. They just made that story up. I had already told the bank that if I did sell them a car why has it taken them 9 months to do anything. Why didn't they go to the police and where is their evidence. Their bank said they were still waiting for the evidence that still has not materialised. They did a bank transfer into my account but this was not for the sale of any goods, they simply lent me the money.
So are you saying I should make a formal complaint to my bank first before going to the ombudsman?