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Creditor sensitivities - possible bankruptcy
RETAccount
Community Reference: This is an unofficial resource compiled from public banking documentation. Severity and behavior may vary by bank and payment provider. View sources.
The payment was returned because it cannot be applied due to creditor sensitivities, such as possible bankruptcy or insolvency proceedings. The receiving bank has restrictions on credits to this account.
Common Causes
- •Bankruptcy proceedings in progress
- •Individual Voluntary Arrangement (IVA) in place
- •Debt Relief Order active
- •Insolvency administration
What to Tell the Customer
“Your payment was returned due to restrictions on the recipient's account. Please contact the recipient or their appointed administrator.”
How to Fix
- 1Contact the recipient about their account status
- 2Check if an insolvency practitioner is appointed
- 3Redirect payment to administrator if required
- 4Seek alternative payment arrangements