ISA transfer fees

somersetapple

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I am seething this afternoon after a run-in with the Alliance and Leicester!

A couple of weeks ago I went into my local branch and wanted to pay in three 5.00 notes, 3 cheques and 7 one pound coins.The cashier (the branch manager!) reprimanded me in no uncertain terms saying they didn't accept 'change' unless it was bagged in 20.00 amounts. I said that as it was a one-off and I normally bagged change up and there was no-one else in the branch waiting to be served,7 pound coins didn't seem to be a big deal. She wasn't having any of it and said 'I will do it for you this time , but please don't do it again!' I was miffed - it wasn't as if I chucked 7 pounds worth of loose change on her desk and as a paying-in customer it didn't seem too much to ask! Anyway she stuck to her guns quoting "the rules" and by the time she'd finished I was well and truley told off!

I have decided that I will take my custom elsewhere and want to transfer my ISA account to another place ( that pays better interest by the way) but the A&L tell me there will be a 25.00 transfer fee!!!

Now, I think this is daylight robbery, especially as I'm moving to another place due to their inflexible rules. I've been to all the other building socs/banks to ask if seven one pound coins would be a problem and they all said 'No!'

Should I just pay it and cut my losses or should I write to the A&L telling them what I think? I wondered if there was anyone who worked in this field who might be able to suggest something!

Somersetapple

deemy2004

as I recall it halifax does not accept any change at all, bagged or not ? maybe I'm wrong.

The A&L is gettign a lot of bad press, so they probably do inhabit the bottom end of the market in overall service delivery.

Now they say they charge £25 for transfer out, maybe the worse part of it will be the amount of time taken to actually transfer out !

MarkyMarkD

£7 in pound coins is a trivial amount and I can't see why they wouldn't accept it.

The £25 transfer out charge was not unique to A&L at the time it was introduced (which was years ago) but it seems that not many (if any) banks/BSs still levy such a charge.

If it's in your Ts & Cs then it's fair enough, though, IMHO.

I would definitely complain about the attitude over the cash though. The restrictions on cash deposits are meant to be there to stop people paying in bucket loads of cash and causing queues to build up, not stopping normal customers from paying in normal amounts.

blinko

the only way to combat the charge is to work out wether its worth it in the extra interest otherwise just stick it out and get thge hell outta there asap

somersetapple

Thanks for your replies. I think I have resigned myself to the fact that I will have to pay the 25 quid :P although the small print was very small but if it was there, then it was there! I certainly wasn't told about it verbally when I took out the ISA.

However I don't intend to pay it meekly 'cos I have sent a letter to their Director of Customer Services telling them I want a detailed account of how that 25.00 is arrived at - the same way I would expect a detailed bill from any service provider charging me for something. I've also told them I'll be charging them for my time and effort in finding an alternative since my desire to change was solely prompted by the unreasonable attitude of one of their staff.! >:(
I once did this with the Nat West and it actually worked 'cos the problem was resolved almost immediately and I had a box of chocolates as an apology!
Knowing what I do about the A&L I don't hold out any great hope but if nothing else it'll make me feel better!
At worst I will pay, go somewhere else and make sure I dish the dirt whenever I can!!

Somersetapple!

Reaper

When looking for your next ISA just check if it is CAT standard. CAT standard ISAs are not allowed to charge you ANY fees (except for replacements e.g. duplicate statements).

A good non-CAT standard ISA can still be worth going for, but then you do need to read the small print before signing.

paul666

See here:
http://news.bbc.co.uk/1/hi/programmes/moneybox/4068441.stm
Moneybox did an article on it.

A&L defends ISA charge

Money Box has been contacted by a number of unhappy customers

Alliance & Leicester has been forced to defend its policy of charging ISA customers who want to transfer their money to another provider.

isasmurf

However, Mr Barber-Kebby said there were no plans to withdraw the charge and continued:

"We have got an awful lot of customers, and we have had very little reaction or complaint from them. So we think they are happy with what we are providing to them."

That's probably because all the ones who have complaints have left.

MarkyMarkD

When looking for your next ISA just check if it is CAT standard. CAT standard ISAs are not allowed to charge you ANY fees (except for replacements e.g. duplicate statements).

A good non-CAT standard ISA can still be worth going for, but then you do need to read the small print before signing.

CAT standards are being binned because they were such a flop.

Walletwatch

The Abbey Postal ISA is a good option, giving you 5.35% and CAT standard as well...

isasmurf

CAT standards are being binned because they were such a flop.

No, they're being renamed Stakeholder (albeit with slightly different terms)