I tried to repay a friend £300, but NatWest lost it

I’m a UK national, but live in the US. Last December I was in London for business and one evening went out with friends. I had to borrow £300 and the next day transferred that amount to my friend’s account using my UK bank NatWest’s online banking. Ten days later he asked if I’d transferred the money, at which point it emerged he had closed that Barclays account in 2005. I paid him again but have been trying to reclaim the initial funds I transferred.

My friend went to his local Barclays to explain. Apparently they told him they had located the transfer and that it was in what they referred to as a “lost and found” account. They told him I needed to speak to NatWest who would initiate a request for the funds to be returned. I did this at the beginning of February, but nothing happened. I called again in March but again no money. I have just been told by NatWest they have been unsuccessful. DW, USA

This time last year a new code of practice came into effect – signed up to by all the big banks – to make it easier to trace money lost in this way. The trouble is, it has had very little impact and letters like these are very common. The code states that the bank sending the money, in this case NatWest, is supposed to take the lead in reuniting the customer with their cash. The problems occur because banks don’t seem terribly bothered as it is not their money that is lost. NatWest sent you a letter detailing why it couldn’t find your £150 – even though the true sum lost was £300. After three months or so, it just gave up, and said you would have to take legal action against the new account holder.

It took us a day to find your money – a call to Barclays’s helpful press department soon located your cash. It was in a holding account, but was available. NatWest, as we have found in too many cases, took rather longer to get its act together, and a week or so later your account was credited. NatWest has also sent an additional £50 to compensate for its confusing letter.

We firmly believe that the Financial Conduct Authority needs to look at this area, and there has to be a better way of dealing with lost payments than this. In the meantime, check and double check the account numbers when sending an online payment. And if sending a large sum, make a small payment – say £10 – and only send the rest when you are sure the first arrived safely.

We welcome letters but cannot answer individually. Email us at consumer.champions@theguardian.com or write to Consumer Champions, Money, the Guardian, 90 York Way, London N1 9GU. Please include a daytime phone number