ISA Transfer HELL taking 6 Weeks!- First Direct vs Natwest

104peterb

Hi all,

After reading various threads regarding how incompetent Natwest seem to be with many people, I thought I'd share my current story regarding my ISA transfer, and hopefully received some advise from you. I'm honestly running out of steam with stress, anger and worry.

I opened a Natwest e-Isa around mid-March, and sent the transfer request form to them to transfer 3 years of funds from my First Direct ISA.

Natwest confirmed they had received my form on 21st March, and First Direct claimed they sent the cheque out on the 28th March.

Its now 5th May and no transfer funds have hit my account. I've been able to pay in this years subscription allowance almost instantly with ease, but my transfer from First Direct still hasn't come.

I logged a complaint on 20th April, but it is ridiculous how many painful phone calls I have made to Natwest to find out where my money is. These calls have taken up to 30mins and I end up getting through to the same old people, who quite frankly cannot help and have provided me with conflicting information on numerous occasions. I get rubbish about "who did this" and "when this happened" etc. I've basically been told to be patient. These people seem more interested in fobbing me off with false information to get me off the phone, saying "its being dealt with".

I even got through to the same girl during my second call, who tried to tell me it wasn't her department who dealt with this matter, but it wasn't until she realised I knew her name (after she told me to phone her back the day before!) that she got all embarrassed and attempted to help. I've requested numerous times to be phoned back with updates- and haven't received A THING.

I called both banks this morning, as I've just lost faith in receiving communications from them, and it now seems that as of YESTERDAY, Natwest requested First Direct to cancel the first cheque and issue another one, so I've now got to wait longer. First Direct have also confirmed this. Nice to see nobody bothered to let me know.

Can anybody advise me on my rights and in particular on the backdating of interest. Natwest told me they start backdating interest on 16th day, but most of the people I've spoken to seem too afraid to confirm anything. First Direct claim I should be backdated to the date on the FIRST cheque, which will be the 28th March, but I just don't know who to believe. Also, at what rate of interest will I be backdated? The new or the old rate?

Can anybody please help me/ provide me with the facts. It'd be much appreciated.

Kind Regards,

Peter

innovate

What a nightmare!

Natwest and First Direct are both sort of correct regarding the date from which you should be receiving the new provider's interest:

From the FSA website:

Your new bank should start paying interest on the date of the cheque, the date the electronic payment was begun or day 16 of the transfer process – whichever is earlier.

This is also clearly documented in the industry standard timeline which Natwest reference on their website - but seems they haven't told their staff.

If I were you, I would also request compensation - at a minimum, Natwest need to pay you for all the phone calls you had to make, plus they should also pay for your time. It is their responsibility to manage the transfer.

It's good that you have already logged a complaint - that way you will be able to take the issue to the FOS if - god forbid - they still haven't sorted it 6 weeks from the complaint date.

Another thing to watch out for at Natwest is what interest rate you get- - they have reduced it recently but you should be getting the rate applicable when you applied. If I were you, I would insist that they confirm in writing exactly what interest they will give you, and from when.

104peterb

Hi there,

Thanks for the response.

Here's the thing. Two cheques have now been issued since the transfer starting date, ones been cancelled, but that's the one dated the 28th March. I'm just really concerned that Natwest, given everything I've already been through, will try backdating me from the date of the new cheque, or try offering me interest from the 16th day. Do you know what I mean? The lady I spoke to this morning from First Direct seems to think that the new cheque was sent with a letter specifically stating that the old cheque was dated 28th March, so I can only hope the Natwest acknowledge this and don't try anything funny. I just do not trust them at all now. Would that be something I would have to complain to the FOS about should it happen?

How often to banks actually compensate for things like phone calls, time and stress etc?

Also, with regards to my interest rate, where do I stand? I'm assuming that with it being a variable rate, theres nothing I can do about it changing? But is there anything I should know about what I've been sold and what they are obliged to do?

Thanks a lot your advice,

Peter

innovate

I would insist - and document this in writing to them - that

1. I get interest from the date of the first cheque, i.e. March 28th. It was entirely their fault that they did not process this cheque in a timely and correct manner
2. the interest I get is in line with what their rates were. E.g. if rate was 3.5% on March 28, and dropped to 3.3% on April 15, I would expect to get 3.5% between March 28 and April 14. Then 3.3% from April 15.
3. I get compensation for the cost of all phone calls and trips to Branch, plus I would ask them for an hourly rate of £50 for my time. Banks pay compensation all the time - you just need to be persistent. They messed you about, they caused the cost, they need to compensate you for it.

I would also notify them in writing that you would have no choice but to take your case to the FOS unless they resolve each and every of the above points to your satisfaction within 8 weeks of your original complaint. Sorry, I said 6 weeks earlier but have now double-checked on the NatWest website, where it says 8 weeks

Don't let them off the hook on anything - - they would chase you for every last penny if you had made a mistake, e.g. gone over your overdraft limit etc.. What is good for them is good for us customers - - and anyway, it's only good manners if people/companies put right what they messed up.

104peterb

Yeah I totally agree, thanks for your advice.

The complaint I logged on the 20th April was actually by phone call, but I sent an essay of a complaint via email through their website last Saturday, in fear that my phone call may not have been logged. This basically covered everything; I requested compensation, a break down of dates and back dating interest rates specific to my account, so I'm just waiting for a response now. I've had it confirmed by Natwest that the email has been added to 20th April complaint, so at least it wasn't logged as a separate complaint.

I will let you know how I get on.

Thanks again,

Peter