Barclays are closing my ISA, why?!

tdwindustries

Hi there

In 2007 I opened the best cash ISA I could,which was Barclays at the time. It was very popular and this sites best buy. Anyway, I have not touched it since, and I don't bank with Barclays so had very little to do with it. Until Friday....

A letter arrived saying that Barclays are closing the account and I have 14 days to get my money out. I quote "your account with us will be closed and our contract with you ended."

It goes on to say, more ominously, "please be aware that we will no offer you any new banking services that you were not already using before receiving this letter."

Wow! Its a savings account! What have I done!!

I rang them this morning and they would not tell me anything except that I no longer met the banks criteria. Oddly it seems to come from the Falcon fraud team.

Any ideas? Has it happened to anyone else?

HELP! Cheers

[Deleted User]

Hi,

strange,,,, here's a similar thread I found.

Lokolo

I suspect if this is happening across the board it's like Eggs accounts where they went around closing loads of accounts with customers. Automatic process I imagine.

I can't see anything about 30 days though.

Guidence notes with HRMC state

12.2 Managers may close an ISA where terms and conditions allow. For example,managers may state in their terms and conditions

tdwindustries

thanks for the replies guys, I suspect I am just not a profitable customer - and they are right I guess, as I only have an ISA with them and don't intend to do anything else!

cottager

So you have to get a transfer organised very quickly. In the other thread frugalmacdugal linked to, although it's earlier on, several people referred to not having received their letters, so I wonder what would have happened here if you hadn't -- would they have just sent the money to you, thereby losing its ISA wrapper and tax-free status for you? I can't see how that would be considered reasonable.

Nor would it be if you arrange a TF through another provider immediately, but for some reason Barclays either don't receive the request from them in time (or don't comply with it in time) and close the account beforehand. If either side or both deals with TF requests by post, this strikes me as a possibility with the Christmas/NY break and postal delays. It's hard to see how they could justify applying a 14-day closure limit to an ISA account, when 30 days is allowed for transfers.

tdwindustries

thanks - will go in to a branch tomorrow. So can I just ask them to transfer to my other ISA?

Mikeyorks

No - you go to wherever your 'other ISA' is - and ask them to arrange the transfer (taking your Barclays ISA details with you). And it would be sensible to mention there's a degree of urgency - but up to you to decide whether to add much other than that.

rb10

I would also write to Barclays (the address on the letter, I doubt the branch will be able to help), informing them that you have made arrangements to transfer your ISA elsewhere, and requesting that they leave the ISA open until this transfer has taken place.

Otherwise, you may find that Barclays close it and send you a cheque before receiving /actioning the ISA transfer request.

tdwindustries

thanks for advice, will keep you posted!

tdwindustries

This really is major scandal. I mean if it takes up to 30 days to do Cash ISA transfer, I now have 5 days to transfer it before my account is closed at Barclays. Surely this is illegal? I will now lose the tax free benefit all thanks to Barclays.

Their helpline is clearly used to dealing with people like me, they cannot offer any help or advice.

Their suggestion? Log a complaint. It takes up to 5 days to respond.

By which time, my account and contract with Barclays will cease to exist. Great stuff.

Surely this cannot be allowed?!

Joe_Bloggs

It is all about treating customers fairly (TCF) , as the FSA say. If you don't like it then lump it and complain. Perhaps a pattern will emerge to a cynical practice, if those who feel they have been treated unfairly, complain in public.
J_B.