ISA transfer problems from santander to lloyds who at fault?

anna42hmr

Hi

am posting on behalf of my parents, they both had isa's with santander, and arranged a transfer of the funds into their lloyds isa's they have opened this tax year

they had a letter from santander dated 15 april to say the funds had been sent to lloyds, however neither of their isa's were credited with the money.

as no update last friday, they went into both lloyds and santander with very little success, after some time on the phone yesterday to them both, lloyds have now advised that the funds were sent via cahoot bank and lloyds rejected it saying it should be sent to santander direct, neither seem to want to take owner ship of the issue and as of today, the money still is not in either of their isa's

can any one help? who is at fault? should lloyds have rejected the payment especially as cahoot is apparently part of santander,or were they right in saying has to come via santander (it was definatly a santander isa from the paperwork)

they also both transferred old west brom isas's into the new lloyds isa's as well and that went through no problems at all

opinions4u

I suspect Lloyds are right, but I've never heard of this before!

If it wasn't a Cahoot ISA the receiving bank cannot provide ISA status to the funds.

anna42hmr

opinions4u wrote: »

I suspect Lloyds are right, but I've never heard of this before!

If it wasn't a Cahoot ISA the receiving bank cannot provide ISA status to the funds.

thanks thats what we thought, it seems very strange, i know cahoot are part of the santander group, but isa was definatly a santander isa, they opened at a santander branch and all their papers have santander on them, no mention of cahoot anywhere??

System

My Santander Cash ISA was transferred to NatWest with no problems at all. I completed the transfer form on the 3 May in my NatWest branch, and the funds were in my NatWest account yesterday.

So, not sure if it is Santander that caused the problem with your transfer or if it is Lloyds that have been awkward ?

ses6jwg

dont ask me why, but santander isa transfers are processed via cahoot (suppose they need something to keep the staff busy). my transfer into halifax had the reference "cahoot loans ipa personal"

iereboy

Lloyds are very cautious when it comes to the receipt of funds - especially large amounts.

Its not the norm to recieve money from one arm of a financial institution when its clearly held in a different one. I think this is particular to Santander only. Santander are over complicating matters.

The ISA team within Lloyds will reject funds if the information does not match. Santander needs to overhaul its systems and processes, though I know a few people on here will say that's an understatement!

rb10

You may be interested in this thread ... http://forums.moneysavingexpert.com/showthread.php?p=43080158 ... it seems that you are not alone in Santander appearing to pretend that ISAs are coming via Cahoot.

(For the record, my ISA transfer [Santander -> Halifax] showed up as Bank Credit - Ipa Santander Uk C.)

anna42hmr

thanks for your replies everyone i will let mum and dad know