How long is reasonable for a cash ISA transfer to take?

smartpicture

I had 4 separate ISAs, decided to centralise by transferring them all to a new one. The first three went through within a couple of weeks and the new ISA account is working fine. The last one (Prinicipality) told me my account was now closed and they had sent the money to the new ISA provider. Three weeks later, I noticed it hadn't arrived and queried this. Principality told me it was nothing to do with them, they'd sent the money 3 weeks ago. The new provider told me it was nothing to do with them, they'd never received it, and I should request it again from Principality, which I did.

5 weeks later, the money is still nowhere - not in my Principality ISA, which was closed, and not in my new ISA, and I keep getting told to be patient. But that means my money is earning no interest during this period, so how long is it reasonable to wait for them to sort it out?

Plus, if I hadn't checked the new account and noticed it was missing, I could have gone for months assuming everything had transferred correctly as they promised, whilst my money was missing completely.

maypole

I believe it should be done within 30days. Keep chasing and if it is delayed too much I would ask for the lost interest.

smartpicture

But who would I ask for the interest, given that both deny it's their problem??

Also, I'm a bit worried this might somehow lead to losing the ISA wrapper around this money if it's not officially been in an ISA for weeks / months?

Lokolo

It is upto the new provider to get the money, so backdating interest should be done with them.

pressuredrop_2

60 days is my record; 30 days for the money to be transferred, 30 days for the money to be added.

You're worrying about nothing.

Yup, patience required.

Kay_Peel

I would have thought it was reasonable for a transfer to go through within 7 working days, wouldn't you?

It actually takes as long as a month .... and that, in my opinion, is totally unreasonable.

10_66

smartpicture wrote: »

I had 4 separate ISAs, decided to centralise by transferring them all to a new one. The first three went through within a couple of weeks and the new ISA account is working fine. The last one (Prinicipality) told me my account was now closed and they had sent the money to the new ISA provider. Three weeks later, I noticed it hadn't arrived and queried this. Principality told me it was nothing to do with them, they'd sent the money 3 weeks ago. The new provider told me it was nothing to do with them, they'd never received it, and I should request it again from Principality, which I did.

5 weeks later, the money is still nowhere - not in my Principality ISA, which was closed, and not in my new ISA, and I keep getting told to be patient. But that means my money is earning no interest during this period, so how long is it reasonable to wait for them to sort it out?

Plus, if I hadn't checked the new account and noticed it was missing, I could have gone for months assuming everything had transferred correctly as they promised, whilst my money was missing completely.

The same thing happened to me a couple of years' ago between A&L and Abbey. Eventually, after many stressful 'phone calls the old provider agreed to cancel the cheque and re-issue another. Due to my complaint, they agreed to re-open my old account and add interest up to the date that they re-issued the second cheque.

ExasperatedofExmouth

My problem is similar - money allegedly sent by Santander but not received by Nationwide - but Nationwide are unhelpfully threatening to void my application. I've tried phoning their ISA centre and emailing them through their secure system (I have a current account with them) but the response is always a robotic "if we don't receive the funds within x days we will void your application". I've been into a Santander branch and they've confirmed that a cheque has been sent for the second time, but Nationwide still claim not to have received it. In desperation I've booked an appointment to see someone at my local Nationwide branch - but that's a week away and I had to pretend to be interested in their house insurance event to get an appointment that soon!

Anyway, it's nice to know I'm not alone, although how I will ever get this sorted, I don't know. I reckon I've lost fifty quid in interest already so I can see I'll have to write endless letters to get that back - and that's if I ever see my capital again.

Banks and building societies - don't you love them? Why on earth can't they just do BACS transfers for this sort of thing? And they make work for themselves by reducing their rates all the time so that anyone with any sense has to transfer. Believe me, if they don't sort this, I'm going to complain to the FSA.

10_66

ExasperatedofExmouth: Have you tried escalating this to a complaint level yet with Santander or N'wide (written and recorded delivery)? If not, I would do so. If they haven't sorted it out within 8 weeks' of official complaint, you can request that the FOS investigate the complaint. This will cost the company you're complaining about £500, regardless of the outcome, so it's not in their interest to let it go this far. HERE's a link to the FOS complaint procedure.

maypole

This seems to be a common problem and people write to the money pages of Sunday newspapers complaining about money being lost or whatever. With electronic banking why on earth should it take so long and be so difficult.
Mine have taken no longer than 30 days though, but it should be sooner:(

Consumerist

I agree with 10_66.

The complaints procedure should be started with both institutions without any further delay, raising the issue of interest payments.

You should start the institutions complaints procedure and after you have received their final reply you can refer the matter to the FOS. If you don't hear anything for eight weeks after your complaint then you can refer it to the FOS directly.