Can someone explain to me the deal with HL?

yatinsardana

naedanger wrote: »

The main argument on the big HL thread is that HL should offer to waive their exit charges for all customers who wish to leave because they are unhappy with the new charges that are being introduced. Everyone who has sent a formal complaint regarding this has, as far as I am aware, been successful i.e. HL have either agreed to refund any exit charges already levied or have offered the customer the chance to transfer within one month without charge. HL are doing this, not for commercial reasons, but as a gesture of goodwill according to them. Also they will only waive these charge if you formally complain, and not if you merely ask.

There are other customers who are getting HL to reduce their ongoing charges but these offers are only being made to those with very large accounts, and then only in a small number of cases, e.g. after the customer had started the transfer process. These offers are most likely being made by HL for commercial reasons (as they are entitled to do).

If you wish to submit a claim for your exit charges to be waived you could send HL a secure message along the following lines:

Subject: Formal Complaint: FAO Senior Client Services Manager

I wish to complain that it is unfair introducing new/increased charges (e.g. the new probate charge and new exit charges) without giving customers an opportunity to exit without charge. I now understand that this is also against regulatory guidance e.g. from the OFT and that you have been waiving exit charges for customers who formally complained.

As a result of the increased charges I no longer want to remain with HL and I expect you to waive my exit and transfer fees, just as you have done for others.

If you refuse, and charge any fees on exit or transfer, then I intend to pursue this complaint via the Financial Ombudsman Service.

I look forward to an early response.

That was very useful, thanks. I shall be sending them a message first thing on Monday then as I've spoken to III and I'm happy to be moving to them on the new year.

Thanks very much for your help!

PS - it sounds like a fairly harsh and aggressive email, has everyone written just that as a model email or something along those lines? I dont want to be unduly aggressive!

naedanger

yatinsardana wrote: »

That was very useful, thanks. I shall be sending them a message first thing on Monday then as I've spoken to III and I'm happy to be moving to them on the new year.

Thanks very much for your help!

PS - it sounds like a fairly harsh and aggressive email, has everyone written just that as a model email or something along those lines? I dont want to be unduly aggressive!

You can soften the wording if you wish but make sure it still says "formal complaint". If you are too nice and don't say you are formally complaining they will not waive their exit charges. (At least that has been my experience and that of others.) To be honest I would not bother changing the wording if I were you. They will hardly bother reading the email before sending you their standard letter, which is not that friendly either .

yatinsardana

Can I clarify something before I send this email, of the 3 charges, 2 of them will be introduced from June 2nd. At present only the £25 per holding charge applies. Now did this charge not apply before this change in the pricing structure?

If it didn't it would be different but if it did then they could very well counter and say that they're giving me enough of a notice for me to leave HL before the new charges kick in. This ones just an old one and so they won't waive it.

naedanger

yatinsardana wrote: »

Can I clarify something before I send this email, of the 3 charges, 2 of them will be introduced from June 2nd. At present only the £25 per holding charge applies. Now did this charge not apply before this change in the pricing structure?

If it didn't it would be different but if it did then they could very well counter and say that they're giving me enough of a notice for me to leave HL before the new charges kick in. This ones just an old one and so they won't waive it.

You are asking for all exit charges to be waived not just any new ones. You are willing to continue the contract on the originally agreed terms, it is Hargreaves Lansdown who are not. So why should it be you that has to pay to end the contract? (If anything HL should be paying your exit costs i.e. your costs of finding and arranging an alternative provider.)

See section 12, particularly 12.4, of the following document for further information:

http://www.oft.gov.uk/shared_oft/reports/unfair_contract_terms/oft311.pdf

yatinsardana

Sent the secure message to HL, crossed my fingers now! Thanks so much for your help!

masonic

jimjames wrote: »

I'm currently waiting for HL to clarify on the account closure fees.

As well as my ISA and SIPP, HL decided to open a fund account for me too. I never applied for it or signed any paperwork to request it and have never used it so I will be none too happy if they try to impose a fee to close it.

They also opened a Fund & Share account for me without instruction, but I've actually used it once or twice. I plan to send them a message pointing out that I'd have kept it open, as it gives me access to US shares, but since I do not wish to pay a charge if I elect to close it in the future, I will be closing it in May.

junglejame911

Two questions - presumably you can sell your shares and transfer the cash without fees? Then repurchase on another platform (if you so wished)

Secondly, does anyone know if closure/transfer charges apply to funds or is it just individual shares?

Very little detail on the HL website.

masonic

You can sell your shares and transfer in cash for free, but I'd only consider doing this if you have a small number of shares and/or don't wish to complain to HL in order to get the in specie transfer fees waived.

The in specie transfer charges apply to all holdings (funds and shares).

ColdIron

Don't forget the dealing fee, HL - £11.95, plus that of your new provider and stamp duty

Stompa

I've got an old empty (PEP) account with HL (listed as 'HL Vantage Stocks & Shares ISA 3 - formerly PEP'), does anybody know how one goes about closing it?

There doesn't seem to be a 'close account' option online, so I assume they probably require something in writing?