MSE News: Share Centre LISA customer? You'll be moved to OneFamily shortly & any cash auto-invested

MSE_Petar

Share Centre Lifetime ISA customers will see their accounts transferred to OneFamily in July, while any cash currently held will be automatically invested. If you don't want to move to OneFamily or have your savings automatically invested, you need to request a transfer to a new provider as soon as possible.

Read the full story:
'Share Centre LISA customer? Transfer to a new provider now if you don't want your savings moved to OneFamily and invested'

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masonic

I wonder if this is what EQi LISA customers have to look forward to.

It would have been nice to see a mention in the article about the problems over-40s are having finding a S&S LISA provider that will let them transfer their LISA. Despite it being permitted for someone over 40 to open a LISA for the purpose of transferring, most providers refuse to accept applications from anyone over the age of 40, which is essential to the transfer process. This seems to be a case of "computer says no" rather than coherent policy.

Tugboat

masonic said:

I wonder if this is what EQi LISA customers have to look forward to.

It would have been nice to see a mention in the article about the problems over-40s are having finding a S&S LISA provider that will let them transfer their LISA. Despite it being permitted for someone over 40 to open a LISA for the purpose of transferring, most providers refuse to accept applications from anyone over the age of 40, which is essential to the transfer process. This seems to be a case of "computer says no" rather than coherent policy.

I would assume EQI customers will be the same if ii had acquired the LISA part of the business, though reading through the emails from EQI it seems it wasn't acquired so hopefully EQI will continue to manage these accounts, but more likely offloaded to One Family. 

I am in the situation you explain the above, over 40 and I would be unable to move the account due to no one accepting transfers in, to then be ported to One Family with only a choice of two funds none of which appeal to me with no way or moving the account would be pretty disgraceful, maybe a complaint should be filed to the ombudsman.

Just shows how shows how poor the market is for these LISA accounts. If you over 40 it's a case of tough luck, zero competition and no say or if you don't like it the only option is to close the account and be penalised 

masonic

Tugboat said:

masonic said:

I wonder if this is what EQi LISA customers have to look forward to.

It would have been nice to see a mention in the article about the problems over-40s are having finding a S&S LISA provider that will let them transfer their LISA. Despite it being permitted for someone over 40 to open a LISA for the purpose of transferring, most providers refuse to accept applications from anyone over the age of 40, which is essential to the transfer process. This seems to be a case of "computer says no" rather than coherent policy.

I would assume EQI customers will be the same if ii had acquired the LISA part of the business, though reading through the emails from EQI it seems it wasn't acquired so hopefully EQI will continue to manage these accounts, but more likely offloaded to One Family.

I see you've queried this in the EQi thread, so will respond there to avoid taking the thread too far off topic.

Tugboat said:

I am in the situation you explain the above, over 40 and I would be unable to move the account due to no one accepting transfers in, to then be ported to One Family with only a choice of two funds none of which appeal to me with no way or moving the account would be pretty disgraceful, maybe a complaint should be filed to the ombudsman.

Just shows how shows how poor the market is for these LISA accounts. If you over 40 it's a case of tough luck, zero competition and no say or if you don't like it the only option is to close the account and be penalised 

I can understand the lack of popularity given the low contribution limits and extra overheads, such as bonus claims. Each provider should be free to make a commercial decision about whether to offer them. The issue around transfers is separate to that, however. Providers are inconveniencing one small group of customers, while going to the trouble of offering the same service to others. This is not about a commercial decision, it is about a flaw in their operations. It is the sort of thing that could be sorted quite easily with some good old MSE pressure.

The over 40 group will be growing larger over time. At some point providers who wish to continue offering LISAs will need to act. Better for them to do so sooner rather than later.

Alternatively, the Government needs to plan for these products becoming obsolete as more providers withdraw from the market, such as converting them to S&S ISAs.