Are there really no regulations for ISA transfers?

Simon11

I've just sent off my transfer form today switching from Halifax to Newcastle. My fixed rate ends 29th of May, so im hoping it won't be too much longer afterwards till it gets switched. Otherwise every day its take longer to switch after my fix rate ends, its £1.60 lost everyday

Hopefully it should take quicker to sort through the proccess as im sure April period is a huge rush for them! *Crosses fingers*

SnowMan

Transfer request put in on 6th April to Halifax (2.6% pa) to transfer from my First Direct ISA (0.2% pa). The FD ISA had fallen from 7% to 0.2% pa on 6th April, of course FD didn't allow me to transfer to their 2.65% ISA.

After many phone calls it was eventually transferred 44 days later (although I'm told I can't access the funds for a further 8 days!!).

Despite complaining informally to both companies both of these highly unethical organisations are telling me I am responsible for the 44 day delay and so I have lost out on interest to the extent of 2.4% pa for 44 days (= 2.6% - 0.2%).

I have put in formal complaints to both banks and will take it to the banking ombudsman if need be.

I have read the Consumer Focus super-complaint to the OFT and find so many themes repeated here; bait pricing and prevention of transfer internally to bank’s best products, slow transfers with loss of interest suffered by consumer, banks blaming each other for the delays, banks saying that ISA rules stop them transferring electronically – all have happened here.

As Mike O’Connor, Chief Executive, Consumer Focus said "It beggars belief that in 21st century Britain it takes a month to transfer information and funds from one bank to another”

I would encourage everyone here to support Consumer Focus by complaining if banks won’t face up to their failings.

Goldenyears

In my case Nationwide don't even have another institution or the post to blame. It's 33 days since my FRISA matured and 42 days since I sent the maturity/transfer form for another Nationwide ISA bond plus a cheque for £5,100 which was not cashed when I looked yesterday. Yes I got the posted receipt but no bond certificate yet.

juicyjude

Waiting 7 weeks now!!!! Feel like saying well you cant have my money now anyway, Nationwide sent the transfer forms to the wrong address for Bradford and Bingley (Santander) but I still have a letter this morning stating if they dont receive the funds from Santander within 10 days they will void my application!

SnowMan

SnowMan wrote: »

Transfer request put in on 6th April to Halifax (2.6% pa) to transfer from my First Direct ISA (0.2% pa). The FD ISA had fallen from 7% to 0.2% pa on 6th April, of course FD didn't allow me to transfer to their 2.65% ISA.

After many phone calls it was eventually transferred 44 days later (although I'm told I can't access the funds for a further 8 days!!).

Despite complaining informally to both companies both of these highly unethical organisations are telling me I am responsible for the 44 day delay and so I have lost out on interest to the extent of 2.4% pa for 44 days (= 2.6% - 0.2%).

I have put in formal complaints to both banks and will take it to the banking ombudsman if need be.

Just to update Halifax have phoned me and offered me a £25 payment to allow for lost interest and the time of effort of having taken up the matter. As the transfer was for about £3,600 that more than cover the interest lost and is reasonable and I have accepted. To be fair they have sorted things very swiftly once I formally complained. :T

This contrasts with the position when I raised the matter informally when they weren't budging at all and wouldn't even cover the lost interest.

So if you feel strongly about what is going on, do as I do and formally complain. If everyone does the same and they are flooded with complaints then the system will surely change without the OFT even having to take action. Consumer revenge is the way to go

No response from First Direct as of yet.

reese

Hi Snowman, can you please let me know what you put in your formal complaint. I requested an internal transfer with the Halifax on 20/03/10 and it still hasn't been done! Thank you

smitten33

Similar problems with FD -> Nationwide. 37 days and counting.

Don't really know who to blame. Nationwide insisted theyve sent out 2 requests now. FD account has already been closed. Definitely a way of stealing interest and discouraging transfers.

Snowman, any help on the kind of content of your letter would be very helpful!

Cheers

JohalaReewi

Result for me. Got an apology from First Direct. They told me on 16th May that they were still waiting for the cheque from Halifax. After I prompted them again recently, FD found that the cheque had arrived on the 13th. They have now set up my account and backdated the interest to the 13th. However, I shouldn't have to keep prompting them and why can't the transfer be done electronically instead of via cheque? There is obviously some slack in the ISA transfer process where somebody is making some money while our cash ISAs are in limbo.

Quiet_Life

HMRC ISA Bulletin Aug 2008

"Electronic Solutions
[FONT=Arial,Arial][FONT=Arial,Arial]It is acknowledged that electronic transfer of both information and funds is the optimum solution. Systems development will need to take place to enable ISA managers to do this, which will call for long-term investment. To help to reduce the expenditure - and ultimately the price a consumer pays for a financial product - system changes will be introduced gradually and not overnight. However, this change is an important development and a working party has been convened to put a process in place."

Money Box Radio 4 a few weeks ago discussed this issue and the rep. from the banking assoc.[sorry can't remember the correct name] stated that when ISAs were first introduced the banks wanted to wait to see whether they would still exist in a few years time before they would spend money on the process of electron transfers for ISAs. As several years have now passed they were asked if banks would now provide electron transfers for ISAs and the rep. basically waffled about the cost involved.
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Milarky

Reposted from here

http://www.bba.org.uk/content/1/c6/01/44/60/FINAL_Cash_ISA_Transfers__Guidelines_August_2008.pdf

Having looked at them they are pretty simple. Here is a schematic view - giving my interpretation of how they are supposed to match up to (and be an improvement over) the HMRC 'guideline' of 30 days

General Timescale (from customer approach to New Manager):
__________ | ____week '0'_____ | ____week1_____ | ____week2_____ | ____week 3_____ | ____week 4______|
______________________________________________________________ |Report Delay (Existing Manger)

__________ | ________ | 2 days | ____5 days_____ | _____5 days____| 2 days | _3 days | _____5 days_____ |

| SENDing.. REQUEST..| POST.. | DEAL WITH REQUEST SEND CHEQUE| POST. | Transfer Complete (OR)
_____ days___| _____5 days____ | _____5 days____ | ____4 days____ |'Chase Up' (by New Manager)