Halifax Share Dealing Payment Delays

SeminoleCAG

Just sent the following to Halifax sharedealing. Before anyone says it's my fault for not getting the timing right, I knew what I was doing. I don't need the funds in the bank account until next Wednesday but I have been burnt before by how this process worked. I wanted to make a complaint about it before I closed my account.

Anyway, here's the complaint:

Last Friday I sold shares through your service. The sale proceeds from this sale will not reach my Halifax bank account until Tuesday next week. I accept that there is a three day settlement period but I requested a transfer to my bank account on Wednesday.

I fail to understand why it takes seven days for to you to process an electronic transaction to move money from my Halifax share dealing account to my Halifax bank account.

On your website you state that funds will be transferred in up to three working days. From past experience, this invariably means that it actually takes three working days. As a result of the Easter break and the weekend, this means that my transfer is actually going to take six working days.

Given that your systems are able to process same day faster payments (although somewhat unreliably in my experience) and immediately deal with card transactions on the other side of the world, it seems to me that you should be able to process a transfer from my Halifax share dealing account to my Halifax bank account pretty much instantaneously.

Based on past experience, you will respond to this with one of the following excuses:

1) “It’s how we’ve always done it”. The reality is that you have the technology to do it whereas you didn’t a few years ago. Banks, like yourselves, only invoke tradition when it’s to your advantage.
2) “It’s what our competitors do”. I’m not entirely sure that’s the case nowadays but it sounds like an argument to justify an uncompetitive cartel.
3) “It’s a bank holiday”. Your computer systems are quite capable of processing online payments and card transactions but you simply can’t be bothered to transfer funds from your own coffers to a customer.

The reality is that the delay in transferring funds is either the result of bloody mindedness or, more likely, because it enables you to invest the funds for a return that, whilst small for individual transactions, is collectively quite large for your bank.

When responding to this complaint, please do not attempt to argue that you are the sharedealing service and not responsible for how long it takes for the “banking system” to transfer the funds. You and Halifax bank are the same organisation and you are collectively responsible for this farce.

I still hold some shares with your organisation. When I come to sell these I will close my account with you. I do not appreciate being taken for an idiot by an organisation that Ihave entrusted my money to.

opinions4u

On your website you state that funds will be transferred in up to three working days. From past experience, this invariably means that it actually takes three working days.

Shocking. It does exactly what it says on the tin.

SeminoleCAG

opinions4u wrote: »

Shocking. It does exactly what it says on the tin.

Actually it doesn't. It says 'up to' but I've never seen them do it in any less.

'Up to' implies that it can take 3 days but sometimes it will take less. If they wanted it to take less than 3 days, they could very easily do so. In reality for transfers within the Halifax group, I've no doubt they could do it in about 3 seconds.

What is 'shocking' is that banks such as Halifax can get away with this.

noh

SeminoleCAG wrote: »

Actually it doesn't. It says 'up to' but I've never seen them do it in any less.

'Up to' implies that it can take 3 days but sometimes it will take less. If they wanted it to take less than 3 days, they could very easily do so. In reality for transfers within the Halifax group, I've no doubt they could do it in about 3 seconds.

What is 'shocking' is that banks such as Halifax can get away with this.

They use BACS to transfer cash from your dealing account to your nominated bank account. A BACS transfer takes 3 working days.

Nothing has changed from when you signed up. If you don't like it why did you decide to use them in the first place?

Biggles

SeminoleCAG wrote: »

Before anyone says it's my fault for not getting the timing right

It's your fault for not getting the timing right.

I knew what I was doing.

You have demonstrated clearly that you did not. You sold on Fri 15th, so you knew the sale wouldn't be settled till Wed 20th, and three working days could well have taken the date of receipt in your bank a/c to Wed 27th. If they do get it to you on Tue 26th, as suggested, they've done well. The bank holiday weekend wasn't their idea.....

I do hope you haven't sent that ridiculous letter.

cococoladebt

TIP: I try this all the time and it works. Give them a call and say that you need the funds urgently to cover a shortfall in your bank account or you can say you need the funds urgently, and could they do a CHAPS transfer. They will inform you that they don't offer this service publicly but they will nonetheless CHAPS the money into your account after being signed off by one of the seniors.

Works a treat every time - Then again I tend to hold my shares for 2 to 3 months and then sell up.

SeminoleCAG

Biggles wrote: »

It's your fault for not getting the timing right.

You have demonstrated clearly that you did not. You sold on Fri 15th, so you knew the sale wouldn't be settled till Wed 20th, and three working days could well have taken the date of receipt in your bank a/c to Wed 27th. If they do get it to you on Tue 26th, as suggested, they've done well. The bank holiday weekend wasn't their idea.....

I do hope you haven't sent that ridiculous letter.

There is nothing ridiculous about the letter. What is ridiculous is that banks think that they can get away with operating such an antiquated payments system when it suits them.

I'm astonished by those on this thread who think that it's acceptable for a bank to take three days to transfer funds from a sharedealing service to a bank account with the same organisation but everyone is entitled to their opinion.

SeminoleCAG

cococoladebt wrote: »

TIP: I try this all the time and it works. Give them a call and say that you need the funds urgently to cover a shortfall in your bank account or you can say you need the funds urgently, and could they do a CHAPS transfer. They will inform you that they don't offer this service publicly but they will nonetheless CHAPS the money into your account after being signed off by one of the seniors.

Works a treat every time - Then again I tend to hold my shares for 2 to 3 months and then sell up.

Thanks for the suggestion. My point is why don't they offer this service as a matter of course? It doesn't cost them any more in transaction costs although it would cost them a miniscule amount of interest.

glider3560

SeminoleCAG wrote: »

I'm astonished by those on this thread who think that it's acceptable for a bank to take three days to transfer funds from a sharedealing service to a bank account with the same organisation but everyone is entitled to their opinion.

Just to be slightly picky, but it isn't quite the same organisation.

Halifax bank accounts are provided by Bank of Scotland plc.
Halifax Share Dealing is provided by Halifax Share Dealing Limited.

dunstonh

I'm astonished by those on this thread who think that it's acceptable for a bank to take three days to transfer funds from a sharedealing service to a bank account with the same organisation but everyone is entitled to their opinion.

Since when are they the same organisation? part of the same group but different companies.

My point is why don't they offer this service as a matter of course? It doesn't cost them any more in transaction costs although it would cost them a miniscule amount of interest?

Because it is expensive and has a higher liability compared to BACs. That is why its normally available as a cost option rather than default. Your opinion on it not costing more to use is wrong as it is a highly manual transaction.

I'm astonished by those on this thread who think that it's acceptable for a bank to take three days to transfer funds

That is the timescale for BACs not using faster payments system and it always has been. That is what they publish as their terms and that is what they are doing.

A complaint about them doing exactly what they say they are going to do is pointless.