Lloyds FRISA 6.5% Start Date disputes thread

MiserlyMartin

Hi I've started this topic as the massive Lloyds thread is too big and the info regarding this issue is fragmented through 60 odd pages. The idea of this thread is for support and chat regarding Lloyds attempt to mis-interpret its own Ts&Cs of the account relating to the start date.

If you have one of these accounts you will probably find that the start of the 12 months fixed period has been taken to be the day the account was applied for not the day the money hit the account if your first deposit was a transfer in. The dispute is that the start date should be the day of the first deposit as the Ts & Cs state below:

"The fixed rate Cash ISA Terms and Conditions in section A below will apply for the first 12 months after your account is opened...

A. YOUR FIXED RATE MINI CASH ISA

2.Your Cash ISA will start from the date of your first deposit which must be
accompanied by a valid application form. Applications cannot be backdated.
3.You must open your FRISA account with a minimum deposit of £3,000. This may be by transfer from an ISA product or products subscribed to in previous tax years....

So if your first deposit was a transfer in the start date should be the day the money was received - NOT the day of the application - as Lloyds have done.

If there was no money deposited in the account - then how can it be open?

You may be affected by this and could lose a month or mores 6.5% fixed rate period and Lloyds should not be allowed to get away with this. This is even more important now rates are dropping like a stone. I have spoken to people at Lloyds and got passed around from pillar to post and now am awaiting a written response. They deny that they ever mentioned a 12 month term! - I told the woman she should could not deny what is written in black and white. I just hope this thread can be a index of info all in one place about this particular issue of the start date only - not transfer delays which are covered in the big thread. I wonder if MSE Martin can help with this as it could affect a lot of savers who took out this product recommended by him at the time. The fixed rate will run out in 3 months time and now is the time to be dealing with the issue, not after you have moved your account for a better rate after the drop!

Baldur

MiserlyMartin wrote: »

The dispute is that the start date should be the day of the first deposit as the Ts & Cs state below:

"B. STANDARD VARIABLE RATE LLOYDS TSB CASH ISA TERMS AND CONDITIONS.
These conditions apply from the end of the 12 months Fixed Rate period. CASH ISA TERMS AND CONDITIONS -YOUR COPY

2.Your Cash ISA will start from the date of your first deposit which must be
accompanied by a valid application form. Applications cannot be backdated.
3.You can open a Cash ISA by transferring the entire balance of a Cash ISA held with
us or another approved ISA provider or by providing a deposit with your application.
The first deposit must be at least £10."

Unfortunately, you have quoted the Terms & Conditions, which relate to their variable rate product, as per your quote "These conditions apply from the end of the 12 months Fixed Rate period" so not relevant to the FRISA at all.

You should be quoting Section A of the Fixed Rate Mini Cash ISA terms and conditions:

2. Your FRISA will start from the date of your first deposit, which must be accompanied by a valid application form. Applications cannot be backdated.

3. You must open your FRISA account with a minimum deposit of £3,000. This may be by transfer from an ISA product or products subscribed to in previous tax years (provided that if you transfer from another ISA you must complete the ISA transfer form as part of your application) and/or by making a new deposit through your branch, or in future you may be able to make a deposit by transferring money from certain other Lloyds TSB accounts through our Telephone Banking or Internet Banking services (if you have registered for them).

MiserlyMartin

Yes sorry about that I have edited it Section A is where it says that.

Baldur

MiserlyMartin wrote: »

Yes sorry about that I have edited it Section A is where it says that.

You need to edit more, unless you are in the process of doing so as I type - it still reads incorrectly, as per my FRISA Ts & Cs, quoted above.

whu

I was told in branch that the 12 month period would start on the first deposit date - but subsequently I was told by the ISA centre that it would start from the date of application!!

MiserlyMartin

I hope that is edited correctly now, its quite a lot of typing to type all those T's and C's. I was also told in branch, led to believe when the money was transferred the 12 months would start.

I don't know why you are worrying about a icesave situation with Lloyds - they are one of the safest banks, besides Brown wouldn't let them and Hbos go down unless the goverment find themselves insolvent (no more money from IMF!)

Heres the CEO's address for complaints direct:

Mr Eric Daniels
Lloyds TSB PLC
25 Gresham Street
London
EC2V 7HN

Tel- 020 76261500

[EMAIL="eric.daniels@lloydstsb.co.uk"]eric.daniels@lloydstsb.co.uk[/EMAIL]

whu

Hi - not sure who the point about being worried about an icesave situation with lloyds is directed at?no one has mentioned it on this thread

Baldur

MiserlyMartin wrote: »

I hope that is edited correctly now, its quite a lot of typing to type all those T's and C's.[EMAIL="eric.daniels@lloydstsb.co.uk"][/EMAIL]

Your quote "3.You can open a Cash ISA by transferring the entire balance of a Cash ISA held with us or another approved ISA provider or by providing a deposit with your application.
The first deposit must be at least £10.........." doesn't feature on the FRISA Ts & Cs that I have.

If you are hoping to get LTSB to honour their Ts & Cs, the last thing that you need to do is misquote or mix them up.

MiserlyMartin

Baldur wrote: »

Your quote "3.You can open a Cash ISA by transferring the entire balance of a Cash ISA held with us or another approved ISA provider or by providing a deposit with your application.
The first deposit must be at least £10.........." doesn't feature on the FRISA Ts & Cs that I have.

If you are hoping to get LTSB to honour their Ts & Cs, the last thing that you need to do is misquote or mix them up.

Edited again. Re typed from the the paper work given to me at branch. I was quoting from another set I found on the web, don't know why they are different to my copy.

Baldur

MiserlyMartin wrote: »

Re typed from the the paper work given to me at branch. I was quoting from another set I found on the web, don't know why they are different to my copy.

I am still awaiting the transfer of one tranche of Cash ISA funds into my FRISA account, since March 2008, and have corresponded at length with virtually every level in LTSB (including Eric Daniels by both e-mail & letter).

Having received a variety of excuses from various sections of LTSB as to why my transfer has not yet succeeded and now awaiting adjudication by the Financial Ombudsman Service - you need to ensure that whatever correspondence you send is absolutely accurate.

MiserlyMartin

Still awaiting a letter from Lloyds after speaking to somebody who said they would not budge on the date... and put it in writing to me. I think I'll have to put in a formal complaint of some sort.