ISA Transfer timescales?

Mishomeister

Is there any timescale by which banks are obliged to complete the ISA transfer?

Many thanks

Ifts

I'm only going by what Ive read on MSE, so according to the guide on here it states the banks have agreed to do the transfer by 15 working days (as a guideline):

The banks have agreed to a 15 working day guideline for the transfer to take place, so you should begin to receive interest within this time. If it goes much over 15 working days, it's worth complaining to the ISA provider.

http://www.moneysavingexpert.com/savings/cash-isa-transfers

ColdIron

I did one from Barclays to Metro Bank recently and it took 7.5 weeks, I got £10 compensation after about 15 days. It doesn't really matter as long as they guarantee to back date it to the date of receiving the application

What staggered me is that they still do it by paper cheques in the mail

Mishomeister

The reason I am asking is that it is now nearly 2 months there and there is also ongoing complaint for about 3 weeks with it being entirely the fault of the bank where the money is now therefore after the transfer is finally completing I will start calculating an amount of compensation that I feel I should be entitled to for holding my money above 15 days without my permission and obviously being able to lend it to other customers for a huger interest rates eg Personal loan for £2000 29.9%APR

isasmurf

Ifts wrote: »

I'm only going by what Ive read on MSE, so according to the guide on here it states the banks have agreed to do the transfer by 15 working days (as a guideline):

Not just industry guidelines, but is the law. The ISA regulations require the new Cash ISA manager to send the transfer request to the old Cash ISA manager within 5 business days of the instruction date; the old Cash ISA manager must send the funds to the new Cash ISA manager within 5 business days of receiving the transfer request; the new ISA manager must deposit the funds in to an account belonging to the "investor" within 3 business days of receiving the funds.

xylophone

http://www.fsa.gov.uk/pubs/consumer_info/know_your_rights_guide.pdf
Page 9
http://www.bacs.co.uk/Bacs/Banks/BacsServices/CashISA/Pages/CashISA.aspx
http://www.guardian.co.uk/money/2012/mar/15/isa-providers-transfers-speed

xylophone

Not just industry guidelines, but is the law.

Can you give chapter and verse - would be interested.

Ifts

isasmurf wrote: »

Not just industry guidelines, but is the law.

Thanks for the heads up.

Ive been lucky myself, all my ISA transfers have gone smoothly.

Ifts

• How long will the transfer take?

Under rules introduced in January 2011, transfers should be completed within 15 days.

Nine in ten accounts now safely switched to a new provider within 15 working days.

This equates to 21 days in total, an improvement on the 26 calendar days taken between 2008 and 2010.
Following a review of the industry by the Office of Fair Trading, further safeguards have also been introduced, which mean interest must be paid by the new provider from the first day that interest is no longer paid by an old provider.

Some providers, such as Halifax and Nationwide, pay interest from the day they receive an Isa application.

Read more: http://www.thisismoney.co.uk/money/saving/article-2120641/What-ISA-transfer-rules-I-stop-rate-crashing.html#ixzz1wprYMHQY

isasmurf

xylophone wrote: »

Can you give chapter and verse - would be interested.

Not really much more to add. The changes were made in the Individual Savings Account (Amendment No 2) Regulations 2010 and applied to all Cash ISA transfers started from 4 January 2011. The relevant part of the regulation is here: http://www.legislation.gov.uk/uksi/2010/2957/regulation/5/made

This is the explanatory note accompanying the change
http://www.legislation.gov.uk/uksi/2010/2957/pdfs/uksiem_20102957_en.pdf

xylophone

Thanks for the above - see http://www.fsa.gov.uk/pubs/consumer_info/know_your_rights_guide.pdf page 9
updated in January 2012 - there is no suggestion here of any regulation requiring the ISA provider to comply -
"The banks have agreed that the
transfer of a cash ISA should normally
be done within 15 working days. [/B]
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."


"Agreed" not "are compelled by law"
"Normally" unless....?
"Should" not "must"