Building society took £4000 out of ISA without permission

HazDan

My building society has made a mistake and I need them to give me the compensation that i deserve for their mistake. I have missed out on tax free money because of their mistake. How do I deal with this?

tanith

I think more information is needed... Have you approached the Building Society? If so what was their reaction? Have they offered to reimburse you the interest that was lost? Have they reinstated the £4000?

dunstonh

My building society has made a mistake and I need them to give me the compensation that i deserve for their mistake.

Why do you deserve compensation? Are you unable to work again due to an accident because of what they did?

have missed out on tax free money because of their mistake. How do I deal with this?

You speak to them about it and see what they suggest. If you are not happy with that, then you put a complaint in.

Its good to talk. Rather than jump straight to threats of compensation.

johnmoney05

dunstonh wrote: »

Why do you deserve compensation? Are you unable to work again due to an accident because of what they did? /QUOTE]

Does it need to be out of work to claim the compensation?!!

The point is OP losing the TAX free benefit due to the bank's mistake.

jamesp_3

johnmoney05 wrote: »

dunstonh wrote: »

Why do you deserve compensation? Are you unable to work again due to an accident because of what they did? /QUOTE]

Does it need to be out of work to claim the compensation?!!

The point is OP losing the TAX free benefit due to the bank's mistake.

If there has been an admin error then the issue should be rectified and the tax free benefit reinstated. If the OP contacts the Bank i'm pretty sure this will get done straight away and the OP won't lose any benefit. They may even give you a little freebie to say sorry.

Mistakes happen but what amazes me is that instead of talking to the people in question to get the issue sorted, people jump straight on the compensation bandwagon. Sign of the times i'm afraid.

jamesd

First step is to ask the building society how they plan to rectify the problem and ensure that no financial loss is sustained as a result of their mistake.

It may not be possible to restore the tax advantaged status, or may not be possible rapidly if only part of the annual ISA allowance in following years is available to be used. If it's not possible then compensation some assumed future behavior to determine the loss sustained and compensation of that amount paid.

If I recall correctly dunstonh favors the word redress, using it to imply that the compensation will be limited to the loss sustained. Which it will be, subject to some possible inconvenience payment.

Mikeyorks

jamesd wrote: »

It may not be possible to restore the tax advantaged status, or may not be possible rapidly if only part of the annual ISA allowance in following years is available to be used.

It should be quite possible to do that - provided the Bank / BS acted without instruction, and the OP has not in any way touched the £4k in the interim.

But that's as good as it gets ....... 'cos this one has all the hallmarks of a wind-up!

HazDan

I contacted the building society and they offered to give me the interest I had lost. However no one can replace the money because of the inland revenue. It is far more complicated as I had beleived that they had not taken the money from my account at all and i tried to sort this out earlier in the year. It wasn't till my third attempt that we identified the problem and they wandered why it had taken so long for me to call them. I had had a colleague of theirs from their help line call them and they couldn't sort it out.

save-a-lot

Hi

I would pose it to the BS that the tax free allowance has been lost for the future duration and that the money in the ISA held with them was part of your long term financial planning. Compensating you on the interest lost to date is not good enough, they need to project the interest you would have earned tax free into the future and base whatever they pay you on that.

HazDan

save-a-lot wrote: »

Hi

I would pose it to the BS that the tax free allowance has been lost for the future duration and that the money in the ISA held with them was part of your long term financial planning. Compensating you on the interest lost to date is not good enough, they need to project the interest you would have earned tax free into the future and base whatever they pay you on that.

Hi

This is what I needed to hear. I will write to the BS to explain what I want. I just want them to recognise that what they have offered is not enough as they have affected my long term financial plan on savings. I mean as a first time property owner it is hard to put any money in from now on and I had used as little of my ISA for the house buy as it was my 'nest egg'. I don't want £1000's of compensation but a bit more than what they are offering as it their mistake.

save-a-lot

Hi

To get an idea of what it could be worth in the future use a savings calculator and 5% tax free on an ISA over the years becomes quite a significant sum