Transferring Cash ISA problem

necon2006

Ten weeks ago, I closed one ISA and opened another, transferring the balance and setting up a direct debit into the next ISA.
This DD has not been acted on, even though a large chunk of money was moved from my old account to my new account, and my old bank have received the DD mandate from my new bank.
What the new bank are telling me is that the cheque transferring the balance was not from my personal account (at a guess it was from some sort of bank's clearing account)
I'm not best pleased, as they haven't bothered to raise the issue with me, and i've lost two months worth of interest and an awful lot of confidence in the bank.
I have been told by my old bank that it is standard practice when transferring ISA's that this must be done by cheque, and they are a very big bank, so I guess whet they do works for them
Has anybody else had this sort of issue, and how did they get it sorted ?

Baldur

necon2006 wrote: »

Ten weeks ago, I closed one ISA and opened another, transferring the balance and setting up a direct debit into the next ISA.

You need to clarify this statement:

• Was the ISA, which you say you closed, the current tax year's ISA or did it contain any current tax year's ISA subscriptions?

• Did you actually close it and transfer funds yourself or did you follow the correct procedure of completing the new ISA provider's ISA transfer form, letting them arrange the transfer?

necon2006

Yes, there had been contributions in the current year, and it was all done by going through the new ISA provider's transfer procedure

Baldur

ISA transfers are carried out in cheque form by many providers and are accompanied by paperwork which identifies you, whether the transferred funds contain current tax year's subscriptions and, if so, the total amount of those subscriptions, as well as details of the total balance transferred.

The cheque transferring an ISA balance from one provider to a new one will never be from a personal account as, if those funds were transferred via a personal account, their ISA status would be lost forever.

This sounds as though you need to chase the new provider to rectify their error as soon as possible.