maturing isa`s

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
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mickfinn1mickfinn1 Forumite
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edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I would like to advise individuals who may have an isa maturing in the near future, an 82yr old friend of mine received a letter from Lloyds advising her that her isa was due to mature, there was no maturity date on the letter, and as she could get a higher interest rate elsewhere she decided to transfer the isa to another provider, when the transfer had gone through she found she had been charged £393.47 in penalty charges by Lloyds bank as the isa was closed FOUR days before its maturity date, Lloyds stated they had done nothing wrong and my friend should have checked the maturity date herself, I was under the impression that banks were obliged to advise customers of appropriate/inappropriate transactions, to treat people fairly and act in the customers best interests, clearly this hasn't happened in this instance, I feel Lloyds staff seen an opportunity to save the bank a couple of hundred pounds at the expense of an elderly lady and took that opportunity maybe someone got a couple of brownie points for it, anyway as I said anyone with a isa maturing soon make sure you check the maturity date yourself to ensure you also don't lose out. :mad:

Replies

  • missilemissile Forumite
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    Obviously, she ought to have checked details of her ISA, but that does seem cruel. I would suggest she writes to Lloyds in the hope that they may waive the penalty charge.
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
  • Archi_BaldArchi_Bald Forumite
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    All ISA transfer forms ask you to specify whether the transfer should be done immediately or whether to wait until maturity, or end of notice period. Your friend seems to have asked for an immediate transfer?

    It does seem a bit harsh of Lloyds not to have double-checked with her.
  • eskbankereskbanker Forumite
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    mickfinn1 wrote: »
    I was under the impression that banks were obliged to advise customers of appropriate/inappropriate transactions, to treat people fairly and act in the customers best interests
    Banks are commercial enterprises whose objective is to make a profit - treating customers fairly is a reasonable expectation but they're not obliged in any way to act in the customers' best interests (especially when at the expense of their own)....
  • xylophonexylophone Forumite
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    Your friend should have ticked the "at maturity" box on the transfer form but in her position, I would still write to Lloyds, explain that she had misunderstood their letter (thought that the ISA was about to mature imminently) and request the repayment of the penalty charge.
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