Over 40s being prevented from transfering LISAs to a new provider

eskbanker

Thrugelmir said:

eskbanker said:

Thrugelmir said:

eskbanker said:

This comes up fairly regularly on here, and in one of the more recent threads, the subject of whether or not it could legitimately be construed as unlawful discrimination was raised:

https://forums.moneysavingexpert.com/discussion/6290953/lisa-after-40/p1

The scheme itself (as with many others) has age-related terms, which weakens the discrimination argument for me when applied to specific products, as ISA providers are already permitted to elect not to accept transfers, so there is an argument that it's legitimate for a provider to only accept transfers if the consumer was eligible to open a new account. 

However, that's not to say that the ombudsman would see it that way, but the ombudsman service only responds reactively to individual cases and it's the regulator (FCA) that has the oversight about how regulated companies operate.

That thread highlighted some recent press attention but I'm not aware of it being on the MSE radar - however unfair it might be, it is a fairly niche problem not affecting huge numbers (relative to more significant industry issues)....

Given their relative size. Companies will simply argue that it's not economic to provide the ability to transfer.  Simply not cost effective. 

That's no defence against acting unlawfully though, if that was the basis of a challenge to their policies!  

Probably why the number of providers offering LISA's is restricted. Administratively too much hassle for the volume of business generated. 

Yes, it's been a low volume product since day one, so understandable that not many providers chose to enter the fray, but the (different) point here is that it's not unreasonable to expect that those who do choose to offer the product should support transfers regardless of age.  I can see the merit of HL's simplistic no-transfers position but AJ Bell's differential stance is less justifiable IMHO....