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

glider3560

mick_sturbs wrote: »

What about the ISA providers who won't let you transfer to another provider.That surely is manifestly unfair.NS&I are the biggest culprits

AFAIK, no one stops you transferring out, they only stop you from transferring in.

Spiggle

Glider is absolutely correct. The following is taken from the terms & conditions of the NS&I Direct ISA available here http://www.nsandi.com/products/disa/tandc :

51. You may be able to transfer the funds in your Account (in accordance with the ISA Regulations) to a cash account ISA or a stocks and shares account ISA with a different ISA manager by contacting the ISA manager to whom you wish to transfer your ISA. The transfer will depend on the other ISA manager agreeing to the transfer. Part transfers of current year’s subscriptions are not permitted.

It does say in another section that you can't transfer in.

Hope that helps,
Spigs

rl1

My husband sent in the forms to transfer an old TESSA from Leeds BS to the Halifax 2 year fixed rate ISA around two months ago. Although he received a certificate of investment from Halifax on 1 April confirming the transfer, the money is still not in the account. When he rang Halifax yesterday (1 May) they confirmed they had received the money on 30 March but it was still going through. A month for a cheque to clear seems a bit excessive to me but she said that's how long these things take. Does anyone else think this is unreasonable.

MarkyMarkD

rl1 - I'm not sure I understand your point. If Halifax have confirmed the investment has been received, that's the end of the problem from your point of view. It doesn't matter how much they faff about.

Milarky

The ISA transfer system is nuts. What the banks should really do is to sort things out electronically, or just wire a sum of money and list of account numbers being transferred daily to the other bank, with some signatures and NI numbers. There's no reason to transfer each account individually.

Except, I believe, there is an HMRC rule (or it could be in the ISA regulation from Parliament itself) banning the combining of transfers like that.

The system is chaotic because the basic principles (eg who should pay interest for periods relating to posting) were never hammered out properly in the first place. When new laws are passed they need to be expertly reviewed periodically (some hope there!)

iss1957

Gorgeous_George wrote: »

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

It's a waste of time transferring your isa's. Unless you get 2/3% more interest.
By the time it's transferred, you've lost most of the benefit!!!!

Gorgeous_George

iss1957 wrote: »

It's a waste of time transferring your isa's. Unless you get 2/3% more interest.
By the time it's transferred, you've lost most of the benefit!!!!

I'd transfer anyway. Otherwise the scum bank has won and I'd rather we both lost.

GG