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ISA transfer - loss of interest

I have just transferred an ISA from Abbey to Chelsea BS. Abbey 'closed' my ISA, with a cheque to Chelsea BS dated 25 days after the closure - which, according to Chelsea, means that i receive no interest on my ISA during that time. Chelsea BS say that it is nothing to do with them.
Can this be allowable?
Tenorman.

Comments

  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    Yes it is.

    Guidelines state that transfers should take no longer than 30 days. 25 is less than 30.
  • oldfella
    oldfella Posts: 1,534 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Guidelines state that transfers should take no longer than 30 days. 25 is less than 30.
    not quite right - the whole transfer process should take less than 30 - closing the account and forwarding a cheque 25 days later is in my view unacceptable. I would complain to Abbey.
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    oldfella wrote: »
    Guidelines state that transfers should take no longer than 30 days. 25 is less than 30.
    not quite right - the whole transfer process should take less than 30 - closing the account and forwarding a cheque 25 days later is in my view unacceptable. I would complain to Abbey.

    Hell I'm not saying I agree with the guidelines but if I was the complaints officer thats what I would reply with! Either that or blame it on the postal strike ;)
  • Mithos
    Mithos Posts: 137 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Logically

    - The money was still with Abbey during those 25 days, not with Chelsea.

    - Chelsea should not be expected to pay interest on money that they don't have.

    - I'd talk to Abbey and explain that. Come back here with what they tell you.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Yes 30 days is allowed for the process but that doesn't mean they can close the account and post-date the cheque!
    Just that they are allowed 30 days to process the transfer (actually the 30 days is boken down into stages.

    I'd complain to Abbey in writing.
  • I always thought a transfer was supposed to be seamless and I also thought the money was moved electronically internally between the institututions-- never thought that cheques would be involved . Ive never bothered how long a transfer has taken within the 30 days as I thought all of those days attracted interest paid by either the old provider or the new , and unless there was a massive difference between the %'s of interest, a few days earlier or later wouldnt be worth calculating . Hope I havent been missing something I should have been worrying about !!
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I also thought the money was moved electronically internally between the institututions
    :rotfl::rotfl::rotfl:
    Hope I havent been missing something I should have been worrying about !!

    Yup! You have!
  • rb10
    rb10 Posts: 6,334 Forumite
    I always thought a transfer was supposed to be seamless and I also thought the money was moved electronically internally between the institututions-- never thought that cheques would be involved .

    Some banks do move money electronically, but if both the new and the old ISA provider aren't part of this scheme, then it'll have to go by cheque.
  • alared
    alared Posts: 4,029 Forumite
    rb10 wrote: »
    Some banks do move money electronically, but if both the new and the old ISA provider aren't part of this scheme, then it'll have to go by cheque.

    Always thought the banks really hated cheques and couldn`t wait to do away with them except of course when they can delay ISA transfers and grab the interest for themselves when the money`s in "mid-air".
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