Documents Misplaced by Bank

Simple is Beautiful; the only thing came in my mind when thought of documentary collection. And I think more and more people are thinking the same in these days. Documentary Collection offers us far greater security than selling on open account; but not as much as a documentary credit. We should therefore be more cautious before starting selling using this method of payment. Documentary Collection Forum is an effort to help you on this way – admin;
Post Reply
Posts: 1
Joined: Wed Feb 20, 2019 3:33 pm
First Name: AHB
Last Name: B
Organization: Sam
Filter: Two Plus Two =: 4
Location: India

Documents Misplaced by Bank

Post by amit » Wed Feb 20, 2019 3:41 pm

HI there!
A document sent for collection under the incoterm DP at sight is refused by the clients bank and returned to the collecting back, however a duplicate set of documents are received by the bank instead of the original.

The party the goods had been shipped to, has gotten hold of the documents and released the goods.

What can be done in this case?

User avatar
Posts: 2026
Joined: Wed Aug 20, 2008 1:49 pm

Re: Documents Misplaced by Bank

Post by picant » Wed Mar 20, 2019 11:24 am

Hi Pal,

contact your banks, forwarders and carriers for advices and explications.
A bank may refuse to handle documents on collection, someone could obtain by a court seizure of
documents, buyer could get the goods against letter of indemnity, just to mention a few of possiblities.
Other comments appreciated

Posts: 22
Joined: Sun Apr 14, 2019 2:06 am
First Name: Linda
Last Name: Lawrence
Organization: NA
Filter: Two Plus Two =: 4
Location: UK

Re: Documents Misplaced by Bank

Post by LLawrence » Sun Apr 14, 2019 2:23 am

That's a tricky one! First thing that needs to be done is your bank needs to contact them via SWIFT.
Secondly, the other bank may have facility such as DIT (Dcument in Trust) where they will send the docs to importer (their customer) before the payment has been made. In other words, they may realised the docs to their customer under the DIT and now no longer are holding the originals. Hence why they sent you with copies.
Solution is: Note & Protest, then court. But the easiest way is if you speak to importer. Note that the other banks duty is to follow Bank Schedule as well. I am not sure what was stated on the bank schedule?

Post Reply