My bank forgot to pay my interest and I'm still missing £400 even though it said sorry - how can I get it back?

By THIS IS MONEY

Updated: 12:51 EST, 23 July 2013

I am a British expatriate living in Bermuda. I have been living overseas for 25 years and have non-resident status.

I have held offshore bank accounts since leaving the UK to take advantage of my non-resident status, and save funds for my eventual return to the UK. The majority of my funds are held with Lloyds TSB International on the Isle of Mann in a joint account held with my wife.

However, I have had an issue with the payment of interest on my primary savings account. The account was paying 2.4 per cent interest monthly, which was due to reduce in early May 2013. In my April 2013 interest payment, I noticed I was missing the majority (approximately £400) of interest for that month.

On the hunt: My bank failed to pay me interest and I am still waiting for it despite my complaint.

I brought this error to the bank's attention through my Premier Relationship Manager, who confirmed there was a problem.

Despite numerous e-mails from me complaining that the bank still have not rectified their error, the interest has still not been paid. As well as my obvious concern at the unsettled interest payment, it leads to questions about trust that the bank is managing my money correctly. In the interest of fairness, I must note that my Relationship Manager did arrange for a £25 inconvenience payment to me.

I feel this matter at the very least constitutes extremely poor customer service, and may be heading towards negligence, as I am still awaiting this unpaid interest, more than two months after it should have been paid. I think the bank would be a little more concerned should I owe them £400. Via email. SP

Amy Andrew, of This is Money, says: I am sorry to hear about the problems you have been having with an overdue interest payment; it sounds like a frustrating situation. 

I spoke to Lloyds TSB, which agreed to look into your situation immediately.

A spokesperson apologised unreservedly for the inconvenience caused, promised your £400 interest would be paid-in-full straight away and offered to pay you another £50 to make up for it.

The bank should be commended for this, as you should now get £75 extra, but it is hugely disappointing that even having complained to Lloyds and had a compensation payment, you still then didn't get your interest and had to come to This is Money for help.

A Lloyds TSB Private Bank spokesperson said: Due to an error, one month’s interest was not applied to the customer’s account.

We have apologised for this and also for the delay in resolving the issue for the customer concerned.

We will apply the missed interest to the account in full and, in recognition of the inconvenience suffered by the customer, we have provided the customer with compensation totaling £75.