Transferred ISA interest query

steady__eddie

A couple of weeks ago I transferred an ISA from A to B. All went well and about a week later, I received a letter from A saying that we have sent a cheque for £xxxx to B. I thouht that the interest paid on the closing balance was a bit on the low side so I queried it. The following day I recieved a letter from B saying that they had received a cheque from A for £xxxx and your ISA with us is up and running.
Today, A contacted me and said that I was right, the interest had been incorrectly calculated and they owed me £y and could they send me a cheque ? I have replied NO, send it to B instructing them to add it to the amount that they sent them a week ago.
Does anyone know if this is not impossible under ISA regs please ?

Lokolo

They can do it but it's more effort on their behalf and yours (I say yours, its not more effort but you are losing out on the interest's interest as it will take longer). Personally, unless the amount was significant, I would have taken the cheque, but that's just me.

steady__eddie

Thanks Lokolo, I'll get them to forward it on, I'll only spend it if they send it to me.

Mikeyorks

steady__eddie wrote: »

Does anyone know if this is not impossible under ISA regs please ?

It's not really covered .... as it shouldn't happen!

If it's compensation as a result of delay in transferring an ISA .... can be added to the ISA.

If it's compensation for delay in opening an ISA or delay in accepting a subscription ..... can't go in the ISA. (except as part of your subscription)

As this is simply redeeming a miscalculation ..... should be absolutely no problem just adding it 'and putting you in the position you would have been in .. etc). But the very fact it's been offered directly to you? May indicate it's not going to be totally smooth?

rb10

I'm not sure how the practicalities of this would work.

They can't just send it to bank B, asking them to put it in the ISA as a transfer, as bank B are not expecting it.

I suppose they could open a new ISA in your name, pay the extra interest in (making sure that it goes in as interest, and not just a credit), and then you would go back to bank B to ask them to transfer this ISA as well?

steady__eddie

I received a reply from A by e-mail the day after I first posted on here in which they said that they would send a cheque for £y to B.
I had to e-mail B on another matter today and in a p.s. I mentioned that they would be receiving another cheque shortly from A i.r.o. my recently transferred I.S.A. If anyone is interested, I will update as and when.

Mikeyorks

steady__eddie wrote: »

If anyone is interested, I will update as and when.

Please. Curious to see how smoothly, or otherwise, it will go?

Not that these things create precedents, as all the providers seem to stumble around when something isn't a daily event?

steady__eddie

I have today received written confirmation from B that they have had a cheque from A for £xx which represents the extra interest on my closed ISA.. "The original transfer was completed incorrectly and they have now amended this".
This has been added to my ISA and they have sent me a receipt.
If only configuring a router was as simple as this.