NATWEST ISA transfer delay

foreversummer

I sent my ISA transfer forms to NATWEST on 5th April and Barclays closed my ISA account on 17th April. Still the money hasn't shown up in my NATWEST ISA.

So that's the 15 days timeframe blown completely out of the window. Useless bunch.

Rant over

Anyone else in the same position?

Foreversummer

lisyloo

I have just spoken to Nat West.
They say it can take up to 2 weeks for the money to be received and process it but interest is backdated.

In your position (over 3 weeks) I'd chase it up incase a cheque has been lost in the post.

I don't think you can blame Nat West if it's lost in the post or even Royal Mail if their post was stolen etc. but I agree it's tortuously slow.
You should take some comfort from the fact that the interest is backdated.

It's about time they speeded this process up and did it electronically !!!

Please update the thread if you speak to them.

fitzroy

I'm in the same position! Money has left my Halifax ISA but not appeared in my NatWest ISA a/c; it'll be 3 weeks tomorrow.

When I rang NatWest to complain that they had my money and I was losing interest on it, they didn't say anything to me about backdated interest!

lisyloo

Did you ask?

It's in the guidelines that they reference on their website so it's all in black and white.
I specifically asked them what date it would be and I was told it would be the date given to them by the ougoing provider on the paperwork.

Please go ahead and ask them on your next call and confirm what they say.

Did you ask them what their procedure was? i.e. how long do they wait before treating it as lost in the post?

Arkle56

Me too .... applied for ISA with Nat West on 12 th April ...they said they would deal with the paperwork to transfer a large sum from Britannia.
Britannia informed me they had closed my account on 27 th and have confirmed in writing and by phone that they have sent a cheque to Nat West .

Still not in my account despite me visiting the bank twice....they appear to have no explanation at all.

Two things .... I have been worried sick [but it is reassuring that I am not alone ]... I shall be writing to Stephen Hester when this is over... or sooner if its not sorted quickly .

The bank have told me that interest will be backdated.

lisyloo

I have been worried sick

Why? It's a cheque not cash in the post.
If it's lost, the cheque can be re-written.
You won't even lose any interest.
The is no chance of anyone losing big sums here. Although I understand it's a little disconcerting when it's nowhere to be seen. We have about £68K "in transit".
Mine was 27th like yours, so it sounds like Nat West are just being slow. Probably they were inundated when they offered the 3.47% rate.

104peterb

Hi all,

I think my case is unfortunately the worst so far.

I opened a Natwest e-ISA mid-March. Transfer form received by Natwest on 21st March and sent to First Direct who also confirmed that my cheque was sent out on 28th March. I'm still waiting on my funds to hit my account.

I have made so many painful phone calls to Nat West, but they are absolutely hopeless. Its been 7 weeks yesterday.

I logged a complaint on 20th April to Natwest, whos policy is to keep you updated on any progress happening. I've heard nothing. I've had to call them myself to keep myself updated.

I was told last week when I phoned them that no cheque was ever received, so they have requested First Direct to send out another, which of course means more time waiting.

I've spoken to the Financial Ombudsman, and they explained that "by law" the banks have 8 weeks to resolve the matter, after which the FO will step in to help.

NOW, we all know that banks make money from our money, but can this 8 week "law" not be seen as a loophole for the banks to bide more time to make interest on your money? Who is actually monitoring whether or not they carry out the transfer within 15 working days?

Whos to say that Natwest haven't received my cheque, telling me they haven't, and then wait for me to make a complaint so that they gain an additional 8 weeks?

Any thoughts on my situation or comments would be much appreciated.

Many thanks

104peterb

P.S. Sorry to take over the thread with this one!

lisyloo

NOW, we all know that banks make money from our money

How will they make money from this assuming interest is backdated?

but can this 8 week "law" not be seen as a loophole for the banks to bide more time to make interest on your money?

8 weeks if the general timeframe to deal with complaints.
No I don't see how they make any money assuming your interest gets backdated.
It's costs them around £500 if you take your complaint to the ombudsman so I'm struggling to see why they would want to do this deliberately.
Incompetant - yes most definitely.
Poor planning - yes.
Malicious - doesn't make any sense.

Who is actually monitoring whether or not they carry out the transfer within 15 working days?

Well you should be but if a cheque is genuinely lost in the post then how can that be Nat West's fault? What is a Royal Mail van wan in an accident, or stolen?

Whos to say that Natwest haven't received my cheque, telling me they haven't, and then wait for me to make a complaint so that they gain an additional 8 weeks?

Why would they do this.
They don't gain any interest (it get's backdated).
They risk hacking off a customer.
Bad publicity and also £500 bill plus hundreds of pounds of staff time to deal with your complaint.

I do sympathise, I have £68K somewhere in the post myself, but I really can't see why NatWest woudl do this deliberately.

The main point you seem to be missing is that the guidelines that NatWest adhere to says your interest will get backdated. It's on their website and several of us have confirmed it by phone as well.

Arkle56

I think that what we have established is that there seems to be a problem with Nat West's processing and that we are dealing with some sort of overload here .....ie they have a large backlog....my sympathy goes to 104peterb incidentally but at least you know we're in this together.

Whilst I agree with the very rational input from Lisyloo it is nontheless disquieting /worrying to have a large amount of money floating around in the ether ,not properly accounted for.....even Lisyloo agrees with this ....and it would be helpful if Nat West explained the problem they clearly have in dealing with cheques.

I checked yesterday with Britannia and Nat West have not yet cashed their cheque so they are having to pay me interest on money they haven't got !

It is difficult for someone like me [Aged 63 ] who was brought up to believe that banks were the most professional of bodies, to find this vague slapdash approach acceptable.
Neither do I swallow the oh so frequent lost in the post excuse....How convenient !

104peterb

The main point you seem to be missing is that the guidelines that NatWest adhere to says your interest will get backdated. It's on their website and several of us have confirmed it by phone as well.

Yes, I've also had it confirmed from Natwest that interest will be backdated. Thats not my point.

Natwest can clearly afford to pay back the interest. What the banks earn from investing consumer money is not going to be equivelant to what they pay me, i.e. the banks probably gain £millions in return from their investments, and then pay me a competative rate in interest.

I'm not an economist, and maybe you are, in which case you probably know more than me, but how do you know they never received my original cheque? Banks are extremely powerful, so how would we ever know? My old ISA from First Direct has now been closed since the transfer, so its not like I have proof of where my money has been deposited since it left.

Also, (and I'm not saying I don't believe you, as its something I know nothing of) but when do the banks get charged £500? Is this a fine, or a fee or what? Do they have to pay this when the FOS have to get involved? If so, then thats 8 weeks from the initial consumer complaint to the bank. Therefore, if the banks resolve the issue within 7.5 weeks, the FOS needn't get involved and no money has to be paid. Either way, do you really think £500 is much of a cost to the banks?

Lets say I was one of 100 people across the UK in the same situation, and we all have £15000 or so floating around in transit somewhere during ISA season. Maybe it does cost them £500 a go every time one of us complains to the FOS, but how do you know Natwest haven't earnt tripple that per customer through investing our £1.5million somewhere.

Maybe I am being synical about this, but my point is that it would not suprise me in the slightest if Natwest take advantage of the time granted in complaints, as after all, who are we to prove otherwise?