Bank made incorrect transfer fom ISA

pollyanna76

Just to let you know that I have had a very satisfactory result !! I delivered a letter by hand yesterday to my bank and had a phone call today saying the money would be reinstated on my ISA A/C together with an amount for lost interest. This is to be confirmed in writing.

So once again with thanks for all your help, the outcome has been successful.

Polly

Indispensable_Hobbes

Well done

Gordon_the_Moron

If the mistake is made by the customer and not the bank can it be put right?

masonic

Gordon_the_Moron wrote: »

If the mistake is made by the customer and not the bank can it be put right?

The guidelines MarkyMarkD posted above cover this in some detail.

MarkyMarkD

Basically, NO. If the customer makes a mistake, they can't get it reversed, which I think is fair enough. If the bank makes a mistake they CAN get it reversed, but they have to "fess up" to the Revenue, which is also fair enough.

I'm very pleased that pollyanna's case has been resolved satisfactorily - a useful pointer for others is to NOT accept the (presumably ignorant/poorly trained) bank staff's initial response that they can't reverse the error, as this clearly is NOT the case.

gelato_cat

Hi Polly

Glad you got this sorted.

Any chance you could name and shame the bank?

Suze

pollyanna76 wrote: »

I visited my Bank and asked them to transfer £3000 from my Current A/C to my ISA A/C, however on checking my balance a few days later, they had transferred £3000 OUT of my ISA into my Current A/C. I spoke to a member of the customer service team who admitted it was their error, but once the money had been taken out of an ISA it could not be replaced. One sum of £3000 has now been transferred to my ISA, but of course, it is still £3000 short of what I had intended it to be.

I would appreciate any advice, whether it is possible for the Bank to put this right as it was their mistake.
Many thanks for any help.
Polly

HazDan

MarkyMarkD wrote: »

The HMRC guidance states that ISA/PEP managers (which should include a bank in the case of a mini cash ISA) can correct mistakes of this nature. It specifically refers to the case where a bank mis-interprets a customer's instruction and withdraws money from their ISA in error.

Look here: http://www.hmrc.gov.uk/isa/isagn.pdf and section 10.31 (use "find" to find that section).

If your bank is being stupid about it, refer them to this guidance.

The guidance is explicit that you mustn't have spent the money in the interim! In other words, if you had £3k transferred to your current account in error, your current account balance must have exceeded £3k from the point of the error until the time when the error was reversed - which point you haven't reached yet.

Thank you for that. I have not spent the money which I transferred into the current account to cover the chque because they took the money from the ISA. I did later move it but the money (in theory) is still there. As they took 'other' money to pay my solicitor. They have now written a second ambigous letter which is not saying much, much is said but not alot said (nearly 2 pages but not sure what it says). They give me 2 clear messages one is that I am lying about having my passbook with me on that day. I did not although they say they have evidence that I did. The second thing is that they will not give me anything. the rest I need to get interpreted as it is badly written.

MarkyMarkD

I don't quite understand what you said there. You say that you didn't spend the money they transferred into the current account, but that you "did later move it". You can't have your cake and eat it - the money should be wherever they put it in error, untouched, for you to meet the HMRC guidelines.