Problems transferring an ISA from Clydesdale

adventurousandy

Clydesdale Bank wrote to say that their 40 Day Notice Cash ISA is being withdrawn from 6th March 2017 and the interest on the new account will be lower. The letter says that if you choose to transfer to another provider prior to 6th March 2017 they will waive the 40 day notice period. I instructed Virgin Money to transfer into one of their ISAs. I checked with Virgin to ask why the money had not been transferred as they had sent the instruction to Clydesdale. Virgin said that Clydesdale replied saying that the transfer would take place in 40 days. They had not waived the notice period as had been stated by Clydesdale in writing. Both providers have blamed each other for the error. Clydesdale said that Virgin had requested a transfer at the end of the 40 day notice period. Clydesdale imposed a waiting period which was no longer required. We have to sort out their mistakes for them it seems.

masonic

You would probably need to specify on the ISA transfer form that you do not wish to adhere to the notice period. It is against ISA rules for notice periods to be enforced against a customer's wishes.

Just ask for the transfer to be aborted and send in a new transfer form with the instruction to transfer immediately. If that doesn't work, lodge a formal complaint with Virgin for not carrying out your instructions in accordance with the ISA regulations.

adventurousandy

I did specify to Virgin on the transfer tick box that I wanted an immediate transfer of funds without serving the notice period, which also didn't apply. Clydesdale said they don't see the form as it's electronically transmitted. Virgin said that they had been made aware of the problem on February 28th. They didn't carry out my instructions it seems.

masonic

adventurousandy wrote: »

I did specify to Virgin on the transfer tick box that I wanted an immediate transfer of funds without serving the notice period, which also didn't apply. Clydesdale said they don't see the form as it's electronically transmitted. Virgin said that they had been made aware of the problem on February 28th. They didn't carry out my instructions it seems.

That seems very clear then. Virgin failed to carry out your instructions, so they are liable for whatever loss this delayed transfer will cause you to suffer.

Rich2808

I am now curious about this.

I have also requested a transfer from this account - albeit with Yorkshire - which they would have received last Thursday. However from today the 40 day notice account becomes instant access.

I requested a similar transfer with Nationwide to my new provider on the same dates - and that has already gone through.

I hope I am not held to the 40 day notice for the transfer - surely any transfers should be processed immediately now as there is no 40 day notice anymore? Its now an instant access account after all - no notice period applies?

masonic

Rich2808 wrote: »

I hope I am not held to the 40 day notice for the transfer - surely any transfers should be processed immediately now as there is no 40 day notice anymore? Its now an instant access account after all - no notice period applies?

I guess that would depend on what date Clydesdale/Yorkshire receives the transfer request from the new ISA manager. If it becomes instant access from today, then all transfer requests received from today onwards should be processed without the notice period, but even before this transfers should not be subject to notice unless the customer chooses this option on the transfer form.

c_smith

I'm in the same position. Transferring from Clydesdale to Paragon.

I opened the Paragon account on 18th February and ticked the box that said any notice period required should be given, but on the understanding that Clydesdale were going to waive the notice period. On 6th March, the money hadn't transferred and I've now spent the past week and a half on the phone to them every other day to try and get this sorted.

It seems Clydesdale applied the 40 days notice after all because I had ticked the notice box. My complaint however, is that there was no notice required after 6th March, so why did Clydesdale apply 40 days notice to an account that only had 16 days left to run before it became instant access. They should have applied 16 days notice and no more. They don't accept this though. According to Paragon, many others are in the same position and there have been lots of problems with Clydesdale transfers.

My ISA still hasn't been transferred and I'm losing 0.55% interest every day as a result.