Cash transfer to ISA mess up

hpsauce_2

Hi
After a bit of advice please.

I have an offset mortgage so have been keeping the money in there as it works out better than the ISA rates.
I wanted to fill last years allowance just before the deadline and have a fixed rate ISA with Lloyds that you can add money to so a few weeks ago I went in and asked if I need to fill any forms in or anything and was told no I as it is new money I can just electronically transfer it in from the account.

So 2nd April I transfer the money as with Yorkshire BS it takes a day to process and to be safe. Saturday 6th April I get a letter from YBS saying Lloyds have refused payment with reason "unspecified" I have been into Lloyds who say they can't see why it was refused as account isn't dormant and I haven't put new money in so have asked ISA department to look into it. I tried checking I hadn't got an account or sort code wrong with YBS but they say they can't see where I sent it?

Is there likely to be any way they can correct the mistake if it is theirs and get the money put into last years allowance or is that all done my HMRC and as it was recredited to the offset account they have lost it for me, in which case I will leave it in the offset till same time next year but am not happy about it.

innovate

hpsauce wrote: »

So 2nd April I transfer the money as with Yorkshire BS it takes a day to process and to be safe. Saturday 6th April I get a letter from YBS saying Lloyds have refused payment with reason "unspecified" I have been into Lloyds who say they can't see why it was refused as account isn't dormant and I haven't put new money in so have asked ISA department to look into it. I tried checking I ahdn't got an account or sort code wrong with YBS but they say they can't see where I sent it?

Is there likely to be any way they can correct the mistake if it is theirs and get the money put into last years allowance or is that all done my HMRC and as it was recredited to the offset account they have lost it for me, in which case I will leave it int he offset till same time next year but am not happy about.

Has it been more than 12 months since you made the last deposit into that ISA? Was the last deposit in 2011-212? That could be the reason since ISAs must go dormant after a while (by HMRC decree), and be re-newed before additional deposits are allowed. Not sure there's anything about this in the Lloyds ISA T&Cs?

Nonetheless, if I were you, I'd just file a strong written complaint with Lloyds and see what they have to say for themselves. I wouldn't offer them any knowledge of the HMRC dormancy rule, but just calmly but very firmly demand an explanation, as well as a full rectification.

PS. to avoid further confusion, use proper ISA lingo: you did not want to make any transfer (of existing ISA money), you wanted to make a deposit (of new money).

hpsauce_2

Thanks for the reply.
I transfered in money from an existing ISA that the rate had dropped on during last year but no new money would this stop it going dormant?
When they were checking dormancy I think this was to do with the HRMC rule but they said it wasn't dormant on their system.
The dormancy thing was the sort of think I was worried about which is why I went in a few weeks before to check I could just deposit in money without needing to do anything else and they said it was fine, although the person didn't actually bother checking it wasn't dormant so that was just luck it wasn't and that didn't catch me out.
Still no reply from them yet after telling me they would respond within 48hrs :mad:

evenasus

hpsauce wrote: »

Hi
I tried checking I hadn't got an account or sort code wrong with YBS but they say they can't see where I sent it?

I know it doesn't help with your problem at the moment.
But for future reference, it's always a good idea to take a screen print of the transaction being made. Especially the sort code and account number details.