Having significant difficulties with Post Office savings closure - can I open a complaint with FOS?

bluehydrangeas

In late September 2021, I opened an additional 2 Post Office Money online savings accounts. I was intending to use these accounts to fulfil the switching bonus requirements for Santander, which was active recently. At the time, this brought the total number of Post Office savings accounts in my possession to 8. I opened my first account with them in 2018. I received a letter in early October saying that it would no longer be possible to set up direct debits from Post Office savings accounts from March 2022. I decided I wanted to withdraw the remaining balance from my savings accounts and close them. Upon trying to do this online, I was presented with an error message saying "transfer cannot be applied to this time". I had previously made multiple withdrawals on a monthly basis without issue over the course of 3 years. Further research led to me discovering that several other people on MSE have had this exact issue, and the only way to resolve it is to contact Post Office Money over the phone. I did exactly this, and after a protracted phone call with someone in Northern Ireland, I was told the issue was resolved. I was also told that I was only able to hold 1 savings account and would need to close the others.
I then discovered I was able to close 4 of the accounts, but the other 4 were still giving the "Transfer could not be applied" error when attempting to withdraw and close those accounts.

This brings me to my current problem. I've made multiple further phone calls to Post Office Money and I am no closer to resolving the issue. They keep telling me there is a "one-day freeze" on the accounts, yet I've made calls spanning over the course of several weeks. Their customer service is abysmal. I also sent a letter to their complaints address in Armagh over 2 weeks ago. I explained that I wanted them to resolve the problem, what I specifically wanted them to do to resolve it, and that I would open a complaint with the Financial Ombudsman Service if it wasn't resolved. I have not received a response to this letter. As I seem to be going around in circles and using the bank's complaints process has got me nowhere, can I go to the FOS at this point? I realise there is a very long wait for them to process complaints, but I would rather just do that as I am getting nowhere dealing with Post Office Money directly.

Daliah

they have up to 8 weeks to respond to your complaint

Stubod

.it's been a while since w have had a post relating to the PO savings accounts. I had assumed it was becasue they are that bad that most people had now stopped using them altogether! It is if no surprise that after many years their service is still abysmal!

Section62

bluehydrangeas said:

Their customer service is abysmal.

Yes.

As Daliah says, give them 8 weeks to respond, then go to the FOS if not resolved.

I have 'complained' to PO repeatedly - about debit card deposits being a lottery, the impossibility of amending DD's, withdrawals not working etc etc - but in each case the misnamed 'customer services' have responded denying all knowledge of problems with their systems... even after pointing out the many posts on this forum reporting exactly the same issues.

The workaround I've used is to find which one of the PO accounts allows reliable withdrawals to a linked account, then only do internal transfers from the others into that one, and withdraw to the linked account from there.  Also, don't try closing an account with a significant balance, withdraw all but £1 by internal transfer first.

soulsaver

Section62 said:

bluehydrangeas said:

Their customer service is abysmal.

Also, don't try closing an account with a significant balance, withdraw all but £1 by internal transfer first.

Yes, if you empty the account (or go below £50 balances on recent IS accounts) the account is instantly closed and disappears leaving no visible record.

If your money doesn't arrive in the linked ac (assuming you can remember which it was from multiple PO accounts) you have no record to refer to.

And would you trust PO to be honest... or even helpful?

soulsaver

Well credit where credits due.. ain't often in their case.. but when you empty the account or go below the recent acs min, they warn you (well, it did me..) it will close the account. It could be new, I've never emptied a PO IS before, so just taking the last ££s out should auto close it. 

Also be aware the w/d isn't instant: My Friday ones haven't arrived yet (Sunday PM). Hopefully that's down to 'next working day' limitations.

eta to add a 'n' in front of ever...lol

Section62

soulsaver said:

Well credit where credits due.. ain't often in their case.. but when you empty the account or go below the recent acs min, they warn you (well, it did me..) it will close the account. It could be new, I've ever emptied a PO IS before, so just taking the last ££s out should auto close it. 

I've not seen a warning before, so you could be right this is a new thing.... although with their track record it could be the case the warning only works on the third Wednesday in months with a "D" in them, and only for customers holding exactly three and a half IS accounts.

It has also got to the point where the loss of the DD facility is not that far off that I personally won't be expending much effort dealing with the PO further.  If the rumour is correct that the 0.69% Tesco IS account will be paying 0.84% from 11 Jan then the need for DD's to operate my Lloyds/BOS accounts will go... and with that my relationship with PO will be reduced to one account just to keep the online access active.

Swipe

I always find it worth leaving £1 in any old accounts until the new tax year for tax certificate purposes.