Lost interest thanks to delay by Post Office (ISA)

BBird

We completed forms for our ISAs to be transferred from our existing provider to The Post Office (their service is actually provided by a company called Family Investments).

With 13 days to maturity of the ISAs, I had no reason to expect transfer on maturity would be delayed.

I went to the on-line link and found forms had to be printed off and taken or posted to the Post Office (how antiquated!).

So we went to the Post Office and handed in our applications. About a week later we received a letter saying they had been unable to authenticate our identity. The next working day we took identification to the Post Office.

After nearly 4 weeks they have finally confirmed one ISA has been opened. No news on the other yet.

I did call the P.O. to chase progress a few days ago, and they said I had to speak to Family Investments. Family Investments advisor said interest could only be backdated to when the funds are received from Virgin but were unable to say if they had been received as 'handled by a different department'. They said I could register my complaint* (*Why don't they phone or email, rather than waste time writing letters? Why can't this all be done on-line? Why didn't they ask us to bring in ID on their forms-to save 4 bus rides? And I registered my surprise they couldn't authenticate our ID as we have never had problems - and are forever opening bank accounts!), and are on the Electoral Register).

I phoned Virgin who confirmed funds were transferred (promptly) electronically a week ago.

We have just received a response from Family Investments saying that as they had been unable to authenticate us electronically with Experian, they will not compensate the lost interest.

Well that's our last investment with the Post Office. They need a good shake up. And what about Good Will! I have recently transferred money on-line to a Middle Eastern Bank, the whole process took a couple of days. And there was no problem verifying ID.

I suspect the Post Office/Family Investments input our surnames or other information incorrectly, but we will carry out a £2 check with Experian!

Thanks to the lovely Post Office. We will end up losing around £30/60 interest.

Update 10/2/14

Today received confirmation the ISAs have been opened. But letter does not give date of opening! So had to make a lengthy 0845 call to Family Investments to find out. Very pleasant lady said yes she thought opened on 'she thought 3/2/14' ... As Virgin said Family Investments received the funds on 30/1/14 I asked if the lady could double check the date. She said she would have to speak to someone else. Then came back and confirmed it was opened on 30/1/14. I asked for confirmation in writing (why on earth was it not stated in the letter)

So we have lost 6 days interest which is around £30 or so, and spent a few pounds on 0845 calls. I will never ever open an account that can't be opened and operated on-line!

Trentenders

Why don't you wait to see what happens before complaining about it? I've never had a problem with their financial products and I've never gone into branch with I'd. Is there anything else to this story?

BBird

Trentenders wrote: »

Why don't you wait to see what happens before complaining about it? I've never had a problem with their financial products and I've never gone into branch with I'd. Is there anything else to this story?

They have told me they will not backdate the interest and have closed my complaint, referring me to the Ombudsman. They said they do not phone or email customers if there are ID authentification issues, and did not accept my comment to request ID when applying in person at the POst Office (which would have saved a couple of weeks, not to mention the extra trip back to the PO, and calls to them . And they will only back date interest to when the funds are received from the other provider (in this case 20 days after I handed in my application, not as a result of Virgin who transferred funds without delay. This is entirely due to the Post Office (well Family investments who operate the ISA).

Re your comment>Is there anything else to this story? I am not sure what this implies. If this refers to the Middle Eastern bank, I have absolutely no connection with them, nor with the region! I simply invested a maturing bond with the provider with the best return* rate for a 2 year bond (with FSA protection etc.! (*not actually 'interest' as this bond is in accordance with Sharia law .. you do need read about it, but if the return drops they advise you and you can withdraw the funds!)