Are there really no regulations for ISA transfers?

SnowMan

reese wrote: »

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

Here is the text of the letter sent to Customer Complaints Halifax, PO BOX 548, Leeds LS1 1WU:


Dear sir or madam

Complaint about ISA transfer delays

Unfortunately as we have not been able to resolve this informally I would like to make a formal complaint about the delays in the transfer of my cash ISA to Halifax (2.6%) from First Direct (0.2%).

I decided to transfer my ISA after the interest rate dropped from 7% to 0.2% on 6th April. 44 days after I handed in the transfer request form to Halifax on 6th April 2010 the transfer finally took place.

As far as I can tell the delays are partly attributable to Halifax and partly to First Direct. I rang you on 15th May to express my concerns about the delays taking place and requesting that given the delays that had taken place that interest be backdated to 6th April.

You will be aware that Consumer Focus believe that the existing banking industry timescales (which you have not met in any case) are ridiculously too long;"It beggars belief that in 21st century Britain it takes a month to transfer information and funds from one bank to another” (Mike O’Connor, Chief Executive, Consumer Focus).

Despite this, when I spoke to xxxxx at Halifax today she was happy with the way that Halifax had dealt with the matter and informed me that transfers can take up to 60 days and interest would not be backdated to 6th April.

Given the failures I expect First Direct and Halifax between you to recompense me for the lost interest I have received over the 44 days (2.4% per annum = 2.6% - 0.2%) and for the time and effort of having to make numerous phone calls and write letters to both companies. If you are unable to do this then my next step will be take the matter up with the banking ombudsman.

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. I think it is important for consumers to support Consumer Focus by complaining if banks still won’t face up to their failings in a responsible and ethical way, hence this letter.

Yours faithfully

SnowMan

Timeline (attached to letter)

6th April 2010 – First Direct rate drops from 7% to 0.2%. ISA transfer form handed in by me to Halifax to transfer to 2.6% Halifax ISA account.

20th April: etc etc

juicyjude

Very good letter snowman I am now on 8 weeks 5 days, still no confirmation of transfer or account opened, or certificate!!!!

SnowMan

juicyjude wrote: »

Very good letter snowman I am now on 8 weeks 5 days, still no confirmation of transfer or account opened, or certificate!!!!

First Direct have now responded also "as a gesture therefore I have credited £15 to your account to cover your interest and your inconvenience". So that makes £40 in total with the £25 from Halifax.

Less reassuringly they say "I'm unable to agree we have made an error in the way we have handled the transfer". They seem to justify this by the following comments

"I acknowledge your comments about the time taken for ISA transfers. Currently the majority of ISA transfers are paper based. This is to ensure that transfer documentation and cheques arrive with the new provider together. However it is possible that financial institutions may adopt an electronic based system in the future"

and even worse

"The process was not a quick as we would have liked. However, we completed the transfer well within Her Majesty's Revenue and Customs timescale of 30 days from the date of receipt of the transfer request"



Clearly First Direct are still in complete denial and I would therefore encourage everyone who has encountered delays in the transfer of their ISA to write in and complain until necessary change takes place across the banking industry.

Don't get me wrong I am a massive fan of the First Direct banking service but they are very much part of the ISA transfer mess problem that needs sorting.

HAMMYLIV

Hi!

I am transferring two ISAs from HSBC to Nationwide. One transferred fine (took about 6 weeks) the other has gone missing! Both accounts have been closed with HSBC since the 20th of May. I have received 3 letters from Nationwide stating that they have tried to contact HSBC but they have received no response. I contacted HSBC and they apparently sent the cheque to Nationwide on the 22nd of May and have been trying to contact them on numerous occasions since then to find out why the cheque hasn't been cashed.

So my money is stuck somewhere in no mans land, I can't access it and I have to rely on Nationwide contacting HSBC (which they haven't been able to do so far according to them) to cancel the cheque and resend it. GREAT.

Someone needs to step in to stop this nonsense going on.

juicyjude

I really sympathise hammyliv - my saga has been going on now for 9 weeks, transferring (or trying to) an ISA from the Cheshire B S and one from Santander!!! to the Nationwide. You cant get through to the ISA transfer dept, and no one seems that bothered. I completed my application form on the 7th April and STILL NO CONFIRMATION that the account has been opened or certificate issued. I am told that the system shows my accounts on the screen, but I only found that out because I am continually going into branch to enquire the state of play. It has been such a fiasco it has made me quite stressed and just feel its not worth the hassle. No one seems bothered about doing anything, the government should step in too many people have complained about this state of affairs.

HAMMYLIV

I got through to Nationwide ISA help on this number - 0800302010

juicyjude

Thanks very much for that number. Were you able to speak to a human being then? At least that would be a start. Really lost the will to live with it all now, totally useless! And I think be reading on this forum a lot of people have similar probs with their transferring of ISAs and its usually with the Nationwide.

MoneySavingMagpie

Me too - I'm having trouble with transferring an ISA from Barclays Tax Beater Cash ISA to a Nationwide eISA. It's taken two months so far and my money's lost in limbo - Barclays have closed my account and the money is no longer there, but it hasn't appeared in my new eISA either! It would be nice to talk to a human being, but Nationwide's ISA helpline seems to be down due to "unforseen circumstances". In a day and age where we can transfer funds between other savings accounts instantly, why does it take two months to transfer an ISA?