Question about transfer made INTO Kaupthing IOM

  • koevet
  • 22/10/08 31/05/09
  • unspecified
  • Offline
Posted: Wed, 22/10/2008 - 11:24

Hello,

first of all I would like to congratulate with all you guys for this great effort. Some of the stories I have read here are horrendous and I hope for the best.

I don't have a Kaupthing IOM account but I have been marginally impacted by the collapse of the bank.
My current employer (based in Europe) pays my monthly salary to a company that had a K-IOM account. My September salary has been paid with a transfer on October the 8th and the funds are now disappeared.
The bank that made the transfer issued a cancellation on the 10th but, so far, they claim that K-IOM is not responding to the transfer cancellation, therefore the money are still in "the cloud".
I have read that K-IOM was already declared "dead" on October the 6th, hence the bank that issued the transfer shouldn't have issued that on the 8th. Is that correct? Do I have any legal background to force the bank to cancel the transfer even if K-IOC is not responding?

The bank is not very helpful, all they say is "we don't know". I have tried to call Kaupthing with no success. The holder of the K-IOC account who receive my salary is in pieces, because he lost 15 years of savings.

Thanks
L.

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Why does your employer pay

  • occams razor
  • 10/10/08 31/05/09
  • a depositor
  • Offline
  • Wed, 22/10/2008 - 11:50

Why does your employer pay your salary to another company?
I don't know the legal situation in this case. And I suspect you don't want to go down that long road either.
Your employer has to pay you your salary, I would assume. I would be arguing that they have not paid you because you have not received anything, the missing transfer is their problem as the sender to sort out whenever they want, but they have to pay you and if that involves making a new transfer, then that's their problem.


Thanks for the quick

  • koevet
  • 22/10/08 31/05/09
  • unspecified
  • Offline
  • Wed, 22/10/2008 - 12:07

Thanks for the quick reply.

I'm a freelancer but I don't have my own company therefore I can't raise invoices. For this reason I use another company's service to raise invoices in my behalf.

Can anyone confirm that the bank was already marked as "dead" on the October, the 6th?

Thanks
L.


No. The bank had its banking

  • occams razor
  • 10/10/08 31/05/09
  • a depositor
  • Offline
  • Wed, 22/10/2008 - 12:16

No. The bank had its banking licence suspended and stopped trading on 8th October.
According to provisional liquidator Mike Simpson (I think) some UK banks received instructions not to process transfers from KSFIOM as of 6th October, though KSFIOM was not notified of this, and that is not independently verified (I think).
I still think the obligation on your employer is to pay you the money, and I would be pushing that angle, as otherwise you are in the same mess as the rest of us. Try to force your employer to shoulder that mess, not you.