Stop! Isa thieves campaign

bagsacash

So there was no period where I received no interest from either provider. If there was a period where I received a paltry rate (as I was dithering about who to transfer it to) the fault was no one's but my own.

There is no escaping the fact the customer suffers a loss if there was a delay from the moment you hand over your transfer form, to the moment the receiving bank took responability for your savings and starting paying interest at the higher rate.

After the very moment you hand over the form, given the form is completed correctly, any delay is completely out of the customers control.

We all know there are many banks that drop rates to as low as 0.1%, that can be a difference of 3.4% if the new bank a customers wishes to transfer to is paying 3.5%. If using the example above.

Thats more than £28 per week of delay, totally out of the customers control, nothing the customer did was wrong, nothing the customer can do about it.

The longer the delay, the larger the amount of money and the bigger the rate difference between accounts - the larger the losses customers will suffer.

So how can the customer accept resposability for that?


In fact Nationwide have been very good in backdating the start date to be the date of transfer on more than one occasion.

For you not to lose out Nationwide would have to backdate to the day you handed in the transfer form.

john_s_2

bagsacash wrote: »

There is no escaping the fact the customer suffers a loss if there was a delay from the moment you hand over your transfer form, to the moment the receiving bank took responability for your savings and starting paying interest at the higher rate.

That's a perfectly fair point, but not a problem exclusive to ISAs. If any new savings account isn't processed properly by the bank then you will suffer a similar problem. Although I accept that the bureaucracy of ISAs make them more vulnerable to this. Something to consider when the next overhaul of the rules is carried out.

EDIT: Although you have to allow up to 30 days - as that's the time they're allowed to take. Anything less than that could be regarded as a bonus (I use that term very loosely!! It certainly wouldn't be a bonus that any banker would recognise ;-) If they take over 30 days to process then you could pursue a claim for compensation with the Financial Ombudsman (for loss of interest). I've never been in a position where I've needed to consider that so I couldn't comment on how realistic that is.

EDIT2: or am I misunderstanding the transfer rules? Is it only the previous provider who is bound by this, or is it the new provider as well? I'm sure I've seen this discussed. If it's not both providers then this is a fair point.

david78

bagsacash wrote: »

For you not to lose out Nationwide would have to backdate to the day you handed in the transfer form.

This is exactly what Nationwide do for internal transfers. For transfers from other providers they use the start date as the date the old account was closed. They get this information from the other provider. Either way, you don't lose interest.

cloud_dog

I think bagsofcash is like my young daughter..... (S)He has ears that hear but don't listen.

They keep regurgitating the same thing without actually comprehending what they are being informed of, its almost like listenting to a politician (sorry bagsoff, I know that was below the belt).

PC_Gabriel_Kent

The Daily Mail eh , a centre of virtue? Owned by a !!!!!! baron!

RayWolfe

You may be thinking of the Daily Express ...

JamesU

RayWolfe wrote: »

You may be thinking of the Daily Express ...

Ministers drop plans for 10% increase in cider tax:beer:

bagsacash

That's a perfectly fair point, but not a problem exclusive to ISAs. If any new savings account isn't processed properly by the bank then you will suffer a similar problem. Although I accept that the bureaucracy of ISAs make them more vulnerable to this. Something to consider when the next overhaul of the rules is carried out.

You are right its not just confined to ISA's, but ISA's are a more serious problem in this regard due to the archiac transfer system they have chosen to use i.e. transfer by cheque.

Hence the reason billions of pounds a year are being robbed from customers.