Time for government to force LISA SS providers accept transfers in 40+?!!

housemw

So the rules state you can open a LISA before 40 and you could transfer from CASH to SS (or vice versa) over 40 for the purpose of transfering the investment (not a new account). I took out a cash LISA with a view to transfer it later to SS. I had checked this was possible before going this route.

HOWEVER the only two SS providers do not offer this option over 40? Isnt this against the rules or at least unreasonable cherry picking of the rules??

In a time of high inflation surely HMRC can ask providers offers LISA to allow transfers in for those customers.

Things change: what if buying house is no longer an option and now the CASH LISA needs to act as extra retirement income?? Not in cash it wont.

So are consumers stuck in CASH till 60? If so the LISA is of a more trap that an investment. 

Surely demand is building and its in AJbell/ HL interest to offer these? Can it really be that hard. This lack of competition is not in the interest of consumers.

Any other options than taking it out in cash?

housemw

Who is eligible for a Cash LISA? You must be 18 or over but under 40 years old when you open and make the initial deposit to your Cash Lifetime ISA. (Unless you are transferring an existing Lifetime ISA from another provider).

dunstonh

HOWEVER the only two SS providers do not offer this option over 40? Isnt this against the rules or at least unreasonable cherry picking of the rules??

The rules say what a provider can do.  They do not say the provider has to do it.

Surely demand is building and its in AJbell/ HL interest to offer these? Can it really be that hard. This lack of competition is not in the interest of consumers.

Yet still the vast majority do not offer them.  

masonic

Whether it started out as a misunderstanding of the rules I cannot say, but both providers you mention are now aware that such a transfer is permitted. Their systems do not permit anyone over the age of 40 to apply for a LISA even if it is for the purpose of receiving a transfer in. They are not obliged to accept transfers.

HL does not accept transfers of LISAs at all, whatever your age. It used to do so and has now withdrawn this facility - probably tells you all you need to know.

AJBell does not seem very interested in fixing the problem. It will have some idea of the number of consumers affected from the feedback it has received, and presumably it isn't a large enough group to justify investing in a change

From the outset there was some concern about the size of the LISA market as so few providers launched one. Now the numbers are even fewer. Given that cash LISA rates have always been disproportionately low, it is unlikely you'd be worse off in the long run by taking the hit of the 25% penalty and investing the proceeds.

housemw

I have complained to AJbell on Trustpilot and looks like others have too. I suggest others that are also stuck do the same. Surely this number will only rise as cash LISA balances increase and 40+ review their finances and question this as I have.

https://uk.trustpilot.com/review/youinvest.co.uk

Albermarle

The issue has been raised in previous threads on this forum, but so far nothing resolved.

housemw

Albermarle said:

The issue has been raised in previous threads on this forum, but so far nothing resolved.

Well at least its not just me..!  I am not accepting it. 

eskbanker

housemw said:

Albermarle said:

The issue has been raised in previous threads on this forum, but so far nothing resolved.

Well at least its not just me..!  I am not accepting it. 

Don't hold your breath regarding AJ Bell - they were making vague noises about addressing this over four years ago....

https://forums.moneysavingexpert.com/discussion/comment/74299698/#Comment_74299698

housemw

O

eskbanker said:

housemw said:

Albermarle said:

The issue has been raised in previous threads on this forum, but so far nothing resolved.

Well at least its not just me..!  I am not accepting it. 

Don't hold your breath regarding AJ Bell - they were making vague noises about addressing this over four years ago....

https://forums.moneysavingexpert.com/discussion/comment/74299698/#Comment_74299698

Oh dear...

400ixl

housemw said:

Albermarle said:

The issue has been raised in previous threads on this forum, but so far nothing resolved.

Well at least its not just me..!  I am not accepting it. 

Complaining on Trustpilot is in no way a formal complaint, its just a winge on the internet in public.

Have you raised a formal complaint with the provider?

masonic

400ixl said:

housemw said:

Albermarle said:

The issue has been raised in previous threads on this forum, but so far nothing resolved.

Well at least its not just me..!  I am not accepting it. 

Complaining on Trustpilot is in no way a formal complaint, its just a winge on the internet in public.

Have you raised a formal complaint with the provider?

housemw would not have the right to complain as no contract exists between he and AJ Bell to provide the service being complained about. He could provide some feedback to them, however. AJ Bell have claimed their Trustpilot page and are actively engaging with feedback provided there, so while I'd always go direct, any comments left there stand a good chance of eliciting a response.