Anyone had their ISA transfer vanish between two banks?

ian-d · 26 April 2017 at 11:18AM

Hoping this gets resolved, but basically what happened is I set up an ISA account with Lloyds, requested a part transfer from HSBC; but then changed my mind on the Lloyds account (it was an investment one and after research wasn't happy with the funds they use). Lloyds said no problem, cancelled the account and said they cancelled the ISA transfer request.

To my surprise, the money (a lot of money!) was lifted from HSBC yesterday, but doesn't appear to have reached Lloyds.

HSBC are saying they sent a cheque (a cheque!?!?) and Lloyds would need to return it. Lloyds are saying that HSBC need to cancel per my request.

HSBC cannot get hold of the ISA department, but Lloyds have said they will call them for me. No news yet.

Anyone else gone through this, or know who should do what; my nerves are at their limit as at the moment, my money is missing in action!!!

eskbanker · 26 April 2017 at 11:32AM

Transfers between ISAs aren't instantaneous at the best of times, but a cancellation midstream is likely to complicate matters - you'll just need to wait to let events take their course but be patient, your money won't have disappeared!

You should only deal with Lloyds on this and leave it to them to liaise with HSBC as it's the receiving party's responsibility to resolve this....

ian-d · 26 April 2017 at 11:46AM

Thanks eskbanker, Lloyds have certainly been the most pro-active so far. The trouble is you can never deal with the ISA transfer departments directly, just the department the product is linked to (in this case e-investments).

I've got both involved because Lloyds said they cancelled the request and HSBC said they didn't, which has brought us up to today.

As long as it is quite common for funds to disappear from one account and not appear in another instantaneous, then hopefully I don't need to worry just yet!

dunstonh · 26 April 2017 at 12:02PM

To my surprise, the money (a lot of money!) was lifted from HSBC yesterday, but doesn't appear to have reached Lloyds.

you have to allow for first class post, scanning, allocation to a staff member and the actual work being done.

my nerves are at their limit as at the moment, my money is missing in action!!!

Why are your nerves at their limit about something that is expected to happen and quite normal?

ian-d · 26 April 2017 at 12:04PM

dunstonh wrote: »

Why are your nerves at their limit about something that is expected to happen and quite normal?

Because the transfer shouldn't have happened at all. I was assured it was cancelled, and my e-investment account with Lloyds has been cancelled too, so there is no where for the money to go!

I've never transferred ISA money before, least of all when I changed my mind and was assured the money wouldn't move, so naturally I'm a bit concerned!

ian-d · 26 April 2017 at 3:25PM

Money appeared back in the account, phew. It was HSBC who sorted it, so maybe they had received the cancellation request but ignored it, so put it right straight away.

EachPenny · 26 April 2017 at 6:25PM

ian-d wrote: »

HSBC are saying they sent a cheque (a cheque!?!?)

Cheques seem to be a common way for the banks to effect ISA transfers, despite us mere mortals being pushed into more and more electronic payments.

You are quite lucky - one ISA transfer I did showed up initially on my online banking as a transfer to an account in the name of a company employee. After phoning to check this employee hadn't recently left the country it was confirmed to be part of the internal process before sending a cheque to the other bank. I still don't understand the need to put the person's name on the account - something like 'ISA Transfer Acc' would make far more sense.

Anyone had their ISA transfer vanish between two banks?

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