Super Complaint into Cash ISA transfers launched - let the OFT know you views

edited 27 April 2010 at 8:33PM in ISAs & Tax-free Savings
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Former_MSE_WendyFormer_MSE_Wendy
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edited 27 April 2010 at 8:33PM in ISAs & Tax-free Savings
[title=http://images2.moneysavingexpert.com/images/dp/wtd_underline.gif]wtd_icon.gif What's this all about?[/title]
Following the complaint about the Cash ISA market by Consumer Focus, the Office of Fair Trading has until 29 June 2010 to decide whether to carry out a full investigation and report back on what it intends to do.

The OFT is now looking into consumer behaviour and levels of understanding around cash ISAs and has asked us to highlight 10 specific questions it is looking for responses to - see this:

You don't need to search for any details about your cash ISA beforehand and this is about your awareness of what your ISA provides.

If you have further or specific comments to add please email the OFT's [EMAIL="cashisasuper-complaint@oft.gsi.gov.uk"]Cash ISA Team[/EMAIL] before 5 May 2010.

Read the full MSE News story: Super Complaint into Cash ISA transfers launched

Let Consumer Focus know too: You can still complete the Consumer Focus survey to let it know your experiences, if you haven't already

Thanks :)

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Replies

  • Gorgeous_GeorgeGorgeous_George Forumite
    8K Posts
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    About time too.

    It takes far too long to transfer from one ISA to another - especially considering that for most of us the sums involved are rather modest.

    There is no tangible excuse for interest rates to be lower (than for taxable savings acoounts from the same provider)- effectively the only beneficiaries of ISAs are the banks.

    Of course, the result of any clampdown will be to benefit some at the expense of others. If banks are forced to be fairer to all it will be at the expense of those who are happy to switch m0ore often. For example, a bank may decide that it can afford to pay 3% to its ISA savers. At present they may do this by offering 0.5% to those who are lazy and 4% to those who are more demanding. Increasing the rates to the lazy will probably mean a reduction in the rates for others.

    I haven't bothered with a cash ISA this year but will look at rates again next year.

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • DarkConvictDarkConvict Forumite
    6.3K Posts
    About time, were my first thoughts too.

    My ISA took 4 weeks to move from NS&I to Abbey, and i thought it was Abbey to blame as been part of santandar has caused so many issues recently.

    I dont see why they keep doing different issues forcing us to swap every year, its a damn nuisance to keep track of it.
    Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.

    There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies
  • I started the transfer process for my Bradford & Bingley eISA by sending forms to SAGA on 11 February. After several letters and telephone calls trying to identify the location for Bradford & Bingley 'transfer' department I finally received a letter from Santander dated 19 March saying they had sent a cheque for the balance to SAGA.
    On 26 March a letter was received from SAGA saying they had NOT received it. To date (31 March) it has still not been received.
    SAGA suggested I chase Santander again. I told them that was pointless as they would just tell me that the cheque had been sent.
    At the end of the day, and in the hope that the cheque does eventually arrive at SAGA, who's responsible for the lost interest?? Both sides insist it is not them
  • savemoneysavemoney Forumite
    18.1K Posts
    Part of the Furniture 10,000 Posts
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    Just listening to it now on BBC working lunch

    http://www.bbc.co.uk/iplayer/console/b00rt9g0/b00rt9fq

    Its at the start
  • 10_6610_66 Forumite
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    Part of the Furniture 1,000 Posts Name Dropper Photogenic
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    martincov wrote: »
    At the end of the day, and in the hope that the cheque does eventually arrive at SAGA, who's responsible for the lost interest?? Both sides insist it is not them

    This is exactly what heppened to me a couple of years' ago between Alliance and Leicester and Abbey. EVENTUALLY, the cheque had to be reissued, with the old account being re-opened so they could add the interest from the original closing date until the new closing date. Took 2 months to sort out.
  • BotanyBotany Forumite
    244 Posts
    I'm very happy Martin is pulling his (considerable) weight behind this. It really needs sorting out so a very big thumbs up to you Mr Lewis!!!

    :T
  • home_alonehome_alone Forumite
    755 Posts
    Its on the news today
  • pompompopompompo Forumite
    14 Posts
    I too would be nothing but grateful if this was sorted out higher up. I have had cash isas since they started and most years have had to move my funds in order to get a reasonable rate of interest. I simply don't understand why some providers don't accept transfers. Money is money after all. All I can think is that they know what a hassle it is and the cost of doing the paperwork is more than they want to pay for? I have had consistently bad experiences transferring ISAs. Last years transfer into Lloyds was the worst ever, taking over 6 months. It was resolved eventually but during those 6 months if a better rate had come along I wouldn't have been able to take advantage of it, because I was in limbo. So this is long overdue and I hope something good comes of it. :T:j
  • BronnieBronnie Forumite
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    Barclays have introduced a headline winning ISA rate for the last few years, but don't allow transfers in and drop the rate to derisory at the end of the year. So as a Barclays customer, I open a new Isa each year with them, but at the end of that time, they give me no option but to move my old ISA money out of Barclays. Madness!
  • inca_2inca_2 Forumite
    283 Posts
    I work in banking and can't understand why it takes so long to transfer either to be honest. In the first institution I worked for we could process the ISA transfers in branch on the day we received them which meant that customers wouldn't lose out but I still don't understand how it takes so long for the transfer to be processed at one end and sent to the other provider? When staff inform customers to expect it to take 30 days for the transfer to be received they understandably ask why so long and to be honest we have no idea ourselves because it seems so excessive!
This discussion has been closed.
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