Bank has lost my savings

Herts_Julie

I had an ISA with one building society which some years ago, I transferred to another building society. I was made redundant at the end of last year so reviewed my savings to see how the interest was doing. I was horrified to find out that unbeknown to me, the transfer failed and my investment hadn't been accruing interest at all but was in limbo. I have 2 other small ISAs so hadn't realised there was a problem as I was still receiving statements for those.

Both Building Societies in question have denied any wrong-doing so I contacted the Financial Ombudsman who say that because the 'transfer' took place over 6 years ago, there is not liability to either building society.

If this were a PPI claim or an unclaimed Will, the records would go back decades. My missing ISA was nearly £7,000 + the interest it should have accrued. Does anyone have any helpful advice for what I should do next? I'm shocked that a national financial institution should be allowed to pocket my savings.

EssexExile

There was a very similar story in The Times recently, or is it the same story?

soulsaver

I don't believe the FOS have agreed there's no liability from either party for loss of the £7k.

EssexExile

Having read the fuller version in The Times I expect you've gone as far as you can go, apart from a long & expensive court case which you may or may not win.

colsten

For those of us who haven't read the Times article, can you add some more meat on this. Specifically, why did the FOS rule out any liability of the two companies involved?

colsten

OP, what did your MP do for you on this matter when you took it to him/her?

Terry_Towelling

It is tough to lose your cash like this (or in any way that isn't your fault).

However, I can't believe OP didn't check to see when it had arrived in the new account. I can't believe OP didn't review the receiving account at all after doing the transfer. I can't believe OP didn't think it was odd to not receive any form of closing statement from the original provider or opening/annual statement from the new provider.

Saying that you failed to realise there was a problem because the other two ISAs were being statemented is illogical; surely that is an absolute giveaway that there is a problem. More than 6 years and no attention paid to it whatsoever just beggars belief - but I guess that is just the way some people roll

Perhaps not that helpful from me but does OP have any form of statementing from the original provider to show that they did indeed have an ISA with them at some point and how much was in it? If not, I can understand why no one is interested because we could all easily pretend to have had an ISA over 6 years ago and demand to know where it has gone.

When an ISA is opened is any form of communication sent to HMRC by the provider? If so, could they help? Clutching at straws here - sorry.

EssexExile

colsten wrote: »

For those of us who haven't read the Times article, can you add some more meat on this. Specifically, why did the FOS rule out any liability of the two companies involved?

The first organisation confirm they closed the account in 2006 by sending a cheque to the second organisation. The second organisation say they have no record of an account ever being opened. The ombudsman says it happened too long ago to investigate.

harz99

So was the cheque from the first organisation ever cashed/cleared? If not there should have been a record somewhere as their accounting system would surely flag that they were £xxxx in excess of the amount they should have in their system.


If there is proof the cheque was cleared, the second (receiving) organisation should surely have surplus funds to account for?

soulsaver

So if it's the same case, we're talking ... 12 years with no checks & balances?

OP want to comment?

It's not clear to me from the OP if we're talking £7k plus, or just the interest on £7k, either.

Zero_Sum

You opened an ISA & never checked on it for over 6 years? Really?

Whenever im opening accounts I check ASAP to see if everything has gone through (more so if its a large amount). And now that everything is online, accounts are monitored on a regular basis.