Loosing more than I have earned in interest when transferring an isa

masonic

Curdy said:

masonic said:

newatc said:

I accept that the OP is likely to lose his complaint but it sounds that Coventry are morally wrong which unfortunately counts for little (not even much sympathy from this board).

While this isn't Moralsavingexpert, I think it is more morally wrong not to hold your hands up when you make a mistake or refuse to to accept the consequences. FOS resources will be used to adjudicate this complaint when they are already facing a large backlog, including serious cases where people have been severely wronged. Coventry may be hit with a £550 charge for this, even if the complaint is not upheld. All of its members will ultimately bear that cost. How is that in any way the morally right outcome?

Whomever is responsible for the ISA transfer request not reaching Coventry within 21 days of the prior account maturing is at fault here. If it wasn't for this delay, no charge would have been levied.

I received a letter today from Coventry to say that they have refunded the penalty as it was wrongly applied. One can speculate about the reasons why they did this, but I am now satisfied that they have done the right thing for which I will thank them for. Thanks to all those who assisted. I must say Masonic, if I had listened to you, I would be hundreds of pounds poorer, but I appreciate you have a valid point of view. Thanks for your time.

Ultimately, the FOS case fee exceeded the penalty they charged, so it was a choice between them being out of pocket close to £400 by refunding you, or being out of pocket £550 (+ continued time and effort) by letting you progress your complaint. I can understand their decision to capitulate, as it was lose/lose for them.

eskbanker

masonic said:

Curdy said:

I received a letter today from Coventry to say that they have refunded the penalty as it was wrongly applied. One can speculate about the reasons why they did this, but I am now satisfied that they have done the right thing for which I will thank them for. Thanks to all those who assisted. I must say Masonic, if I had listened to you, I would be hundreds of pounds poorer, but I appreciate you have a valid point of view. Thanks for your time.

Ultimately, the FOS case fee exceeded the penalty they charged, so it was a choice between them being out of pocket close to £400 by refunding you, or being out of pocket £550 (+ continued time and effort) by letting you progress your complaint. I can understand their decision to capitulate, as it was lose/lose for them.

As stated, it's speculation about why they'd refund, but it seems reasonable to suggest that they accept some sort of responsibility for the events surrounding the transfer, rather than a tacit admission of liability for Ts & Cs that someone feels unhappy about but that are legitimately applied to many thousands of others.

P.S. FOS case fee is now £750, but if institutions rolled over every time someone threatened them with FOS for claims of less than that, the industry would implode!

masonic

eskbanker said:

masonic said:

Curdy said:

I received a letter today from Coventry to say that they have refunded the penalty as it was wrongly applied. One can speculate about the reasons why they did this, but I am now satisfied that they have done the right thing for which I will thank them for. Thanks to all those who assisted. I must say Masonic, if I had listened to you, I would be hundreds of pounds poorer, but I appreciate you have a valid point of view. Thanks for your time.

Ultimately, the FOS case fee exceeded the penalty they charged, so it was a choice between them being out of pocket close to £400 by refunding you, or being out of pocket £550 (+ continued time and effort) by letting you progress your complaint. I can understand their decision to capitulate, as it was lose/lose for them.

As stated, it's speculation about why they'd refund, but it seems reasonable to suggest that they accept some sort of responsibility for the events surrounding the transfer, rather than a tacit admission of liability for Ts & Cs that someone feels unhappy about but that are legitimately applied to many thousands of others.

P.S. FOS case fee is now £750, but if institutions rolled over every time someone threatened them with FOS for claims of less than that, the industry would implode!

Yes, quite possible that they were partly responsible for a delay in actioning the transfer request, that could reasonably have been started within the 21 day window. We don't have any of the facts around when the transfer request was made to Virgin Money, or when Virgin Money first got in contact with Coventry about it. Just that when Coventry contacted the OP "the isa was only a few weeks old."

My goodness, £750 as of April 2022. That's quite a jump!