Halifax ISA Problem

KonkyWonky

Last year my girlfriend and I both thought we opened ISA accounts with Halifax, transfering an existing ISA from RBS from tax year 07/08.

We have just accessed our accounts online and it appears that although Halifax transfered my girlfriends RBS ISA over to a Halifax ISA they have botched up my transfer. For some reason they have transfered my RBS ISA across and put it in a Liquid Gold Savings Account paying a ridiculously low interest rate. Unfortunately I don't have all the associated paperwork from Halifax regarding the transfer, I do however have a letter from the Halifax ISA Transfer Service stating that they requested the funds from RBS.

Now I am extremely peeved and being after 8pm in the evening their customer services dept is closed. Are Halifax likely to try and lay blame at my door for their error or is this an easy fix? Clearly I am expecting them to correct their error and pay interest from the date of the account being opened as well as reinstating the tax free benefits of the ISA.

McKneff

I agree with you being peeved but they would have sent you a letter when the transfer took place to inform you where it came from and where it went to.
Ask them for a copy of this.

You have to take some of the blame for not being as vigilant as you should have been. Are you actually saying that you have not checked your account on line for a long time (maybe even nearly a year)
I wish you good luck. Let us know how you get on.

KonkyWonky

McKneff wrote: »

I agree with you being peeved but they would have sent you a letter when the transfer took place to inform you where it came from and where it went to.
Ask them for a copy of this.

You have to take some of the blame for not being as vigilant as you should have been. Are you actually saying that you have not checked your account on line for a long time (maybe even nearly a year)
I wish you good luck. Let us know how you get on.

Perhaps I should have noticed sooner, but that does not negate the fact that they are at fault for opening the wrong account. The letter I have clearly states that I am requesting an ISA transfer.

I can assure you I have not checked the account since last year, it is an ISA account that I had no intention of touching and as I transfered across a balance and opened a new ISA for the 09/10 year why would I have to check it? I was not expecting any interest to be paid, I was not paying new monies in so there was little reason to check.

rb10

The ISA will have been made 'void'. The most likely cause of this is because HMRC require any bank to have your National Insurance number (so that HMRC can identify you and ensure that you follow the rules).

If the bank doesn't have your NI number, then the account cannot continue to be an ISA - so it will default to a Liquid Gold. Halifax should have written to you informing you that you had not supplied them with your NINO, and telling you what the consequences would be.

As an ISA Transfer took place, it is clear that it was initially an ISA, but due to your account not fulfilling HMRC's rules, it could not continue like this.

KonkyWonky

rb10 wrote: »

The ISA will have been made 'void'. The most likely cause of this is because HMRC require any bank to have your National Insurance number (so that HMRC can identify you and ensure that you follow the rules).

If the bank doesn't have your NI number, then the account cannot continue to be an ISA - so it will default to a Liquid Gold. Halifax should have written to you informing you that you had not supplied them with your NINO, and telling you what the consequences would be.

As an ISA Transfer took place, it is clear that it was initially an ISA, but due to your account not fulfilling HMRC's rules, it could not continue like this.

I have not recieved any correspondence from Halifax to this effect. Provided I supply my NINO will they be able to reinstate the ISA? (assuming this is the problem ofc)

curlygirl1971

Hi

This happened to me a couple of years ago. Transferred ISA from one provider to Halifax. It went into new ISA account and overnight Halifax transferred the amount less current tax years allowance to my Current Account. They did send me a letter to advise me of this but before I even received it I had noticed the transaction ie. the next day. I rang up was panicked but calm and polite......quickly escalated to a hissy fit when their CSA told me nothing could be done.

They advised it was because the original ISA provider hadn't completed full paperwork to accompany the transfer. ie. they hadn't stated the funds were ISA funds/previous tax year. No surprise as I'd had a ridiculous number of problems with the provider and anything that could go wrong did go wrong and they were happy to blame me every step of the way

At first the Halifax were pretty adamant that it was tough luck, HMRC rules forbade them to correct it as the funds had already left the tax-free account and become taxable. Got through to someone a little higher up. I hate myself for doing it but I even said something like 'Have you seen how much money I have with the Halifax?' (At that point EVERYTHING I had was with them) and this seemed to prompt the first positive reaction from them.........anyway very reluctantly they resolved it in my favour. This was all done in the space of 30 mins over the phone but I'm sure it was because I'd reacted straight away.

The very best of luck in resolving your problem with them - dig out all your paperwork

AirlieBird

rb10 wrote: »

The ISA will have been made 'void'. The most likely cause of this is because HMRC require any bank to have your National Insurance number

I very much doubt this is the cause. The OP would have provided his NINO when he originally opened the ISA. If he didn't provided it to Halifax, or any information they held about the OP that disagreed with the information provided by the old manager then they should have accepted the ISA and sought to clarify the correct information from the OP.

KonkyWonky

Just off the phone from Halifax and apparently they never recieved my application form. I assured them they must have recieved it as my girlfriend and I both opened an account at the same time and both application forms were sent in the same pre paid envelope.

Halifax will now send out another application form for me to complete and the ISA will be reinstated with no loss of interest.

I have a feeling this is not the end of the matter though, it seemed far too easy to sort. I would love to be wrong though.

Mikeyorks

curlygirl1971 wrote: »

At first the Halifax were pretty adamant that it was tough luck, HMRC rules forbade them to correct it as the funds had already left the tax-free account and become taxable.

They were talking rubbish .... HMRC rules are crystal clear that the status quo can be restored (without referring to HMRC) where the ISA provider is in error (but not so where it's the customer) :-

10.31a Cash withdrawn from an ISA in error by the investor cannot be reinstated.
10.31b Cash withdrawn from an ISA in error by the manager may be reinstated without reference to SSO

KonkyWonky wrote:

I have a feeling this is not the end of the matter though, it seemed far too easy to sort

Suggests they know they've screwed up? How did they manage to import your money if they had no application.

KonkyWonky

Mikeyorks wrote: »

They were talking rubbish .... HMRC rules are crystal clear that the status quo can be restored (without referring to HMRC) where the ISA provider is in error (but not so where it's the customer) :-






Suggests they know they've screwed up? How did they manage to import your money if they had no application.

The thing is they never actually admitted they were at fault. They said I had completed the ISA transfer form (which they recieved) but not the actual application form detailing name/address/NINO etc.

I questioned why they were quick enough to take my money and not chase me up on the fact they hadn't recieved the application form though to which I got told it was just standard practice :huh:

dunstonh

The thing is they never actually admitted they were at fault. They said I had completed the ISA transfer form (which they recieved) but not the actual application form detailing name/address/NINO etc.

That is a actually a fairly common error.

So, it may have been a case of staff not really caring about something that happens fairly often.