Charter Savings Bank - a poor choice ?

refluxer

It's now 6 weeks since I applied to Charter Savings Bank to open a Fixed Rate Cash ISA and arranged to fund it via a transfer and I am still waiting to be accepted as a new customer.

As I was a new customer, I obviously had to go through the usual online ID/address verification checks and I also had to supply details for a nominated bank account, which was puzzling as I only wanted to fund the ISA via a transfer, but I accepted the fact that some banks might want a nominated account as a matter of course, no matter what type of account you're applying for.

Everything appeared to go smoothly but, a few days later, I received an email stating that they couldn't verify my nominated bank account. I've been using the same current account (with a major high-street bank) for well over 20 years and I've lived at my current address for the majority of that time too. I've opened accounts with dozens of banks and building societies over the years and never once had this current account questioned before.

I dutifully posted off a bank statement as proof and received it back through the post, along with a letter that stated it would be reviewed by the account opening team and I would receive my online banking details once the account was approved and open. That was 5 weeks ago.

I phoned Charter at the end of November and, after a half-hour wait on the phone, was told that it was still in the hands of the account opening team. The customer service assistant, while pleasant enough, couldn't pass me on to them to speak to them, nor could they provide any more details about how long this was likely to take. I've also emailed Charter more recently - they apologised for the delay and said they would try and speed things up. I've still not heard anything.

Now - I'm not an unreasonable customer and accept that banks may be stretched at the moment for various reasons, however I really don't think that 6 weeks is an acceptable time-frame for simply being accepted as a new customer - bear in mind that the ISA transfer I originally requested hasn't even started yet, so this delay is not due to the ISA transfer process (both banks also use the BACs ISA transfer service). I've applied to other banks as a new customer and arranged ISA transfers many times in the past and the whole thing has often been sorted in a matter of days, or a week or two at the most if paper forms are involved.

If Charter don't back-date the interest to the time of application then that will be unacceptable to me, as the ISA I want to transfer has been stuck on a poor rate for the last 6 weeks. If it wasn't for the fact that fixed rates have dropped considerably during that time, I would have already contacted them and told them to forget it. If this drags into the new year, I may yet do this anyway out of principal.

Has anyone else had similar experiences with Charter's inefficiencies or have I just been unlucky ?

happybagger

Personally I have found CSB to be very good but I've never had the issues opening that you have. I've opened, closed, and reopened again without an issue, and funds transferred on maturities on the day.

One thing I've noticed this year when attempting to open accounts at other banks I've found by ditching my middle name or initial when applying or inputting nominated account details seems to get it through. Vanquis and UBI both failed with the middle name or initial, but went through without. Just in case this helps others.

I tried to open a KRBS FR ISA for each of my parents at 4.4% and personally wish I'd gone and done it a CSB 4.38% instead, as one took a month and the other still hasn't been done after about 6 weeks.

SJMALBA

FWIW, I've had a number of accounts with Charter over the past 18 months or so (EA, Fixed, Notice), and never had any problems; similarly, I've opened/closed various accounts with them for my mother, again without any issues.

All things considered, to date, they've been excellent (touch wood!).

Aged

I also have dealt with Charter several times over the years with ISAs, fixed rate bonds etc and I've never had one problem or hitch. I'd rate them highly!

kaMelo

I think you've just been unlucky. I've had a few accounts with Charter including transferring an ISA over the last five years or so, in that time I've never had the need to phone or write to them for any reason as everything has gone as expected. I too would recommend them to anyone.

Having said that it doesn't mean they don't get things wrong which is why I think you've just been unlucky. Even if verifying your current account was taking longer than expected the ISA transfer could still have gone ahead. and I don't think you're being unreasonable wanting interest credited from the day the transfer should have reasonably gone ahead.

If that is not what happens then maybe start a complaint stating that is what you want to happen.

mebu60

kaMelo said:

I think you've just been unlucky. I've had a few accounts with Charter including transferring an ISA over the last five years or so, in that time I've never had the need to phone or write to them for any reason as everything has gone as expected. I too would recommend them to anyone.

Having said that it doesn't mean they don't get things wrong which is why I think you've just been unlucky. Even if verifying your current account was taking longer than expected the ISA transfer could still have gone ahead. and I don't think you're being unreasonable wanting interest credited from the day the transfer should have reasonably gone ahead.

If that is not what happens then maybe start a complaint stating that is what you want to happen.

Exactly as kaMelo said. 

snowqueen555

I used them before for a 1 year fixed bond. I don't remember there being any issues with using it to be honest.

t0rt0ise

I've had problems too. I've used them before and they were fine, this time it took 6 weeks to set up an ISA and then they said that the transfer window was 30 days and that had now passed. It passed because they took too long, nothing to do with me. I have raised a complaint. We'll see if they can deal with that in any sort of timely fashion.

jaypers

I’ve had Charter accounts for about 3 years, although none are ISAs. Always found them very good and reliable. 

kwangomango

refluxer said:

It's now 6 weeks since I applied to Charter Savings Bank to open a Fixed Rate Cash ISA and arranged to fund it via a transfer and I am still waiting to be accepted as a new customer.

As I was a new customer, I obviously had to go through the usual online ID/address verification checks and I also had to supply details for a nominated bank account, which was puzzling as I only wanted to fund the ISA via a transfer, but I accepted the fact that some banks might want a nominated account as a matter of course, no matter what type of account you're applying for.

Everything appeared to go smoothly but, a few days later, I received an email stating that they couldn't verify my nominated bank account. I've been using the same current account (with a major high-street bank) for well over 20 years and I've lived at my current address for the majority of that time too. I've opened accounts with dozens of banks and building societies over the years and never once had this current account questioned before.

I dutifully posted off a bank statement as proof and received it back through the post, along with a letter that stated it would be reviewed by the account opening team and I would receive my online banking details once the account was approved and open. That was 5 weeks ago.

I phoned Charter at the end of November and, after a half-hour wait on the phone, was told that it was still in the hands of the account opening team. The customer service assistant, while pleasant enough, couldn't pass me on to them to speak to them, nor could they provide any more details about how long this was likely to take. I've also emailed Charter more recently - they apologised for the delay and said they would try and speed things up. I've still not heard anything.

Now - I'm not an unreasonable customer and accept that banks may be stretched at the moment for various reasons, however I really don't think that 6 weeks is an acceptable time-frame for simply being accepted as a new customer - bear in mind that the ISA transfer I originally requested hasn't even started yet, so this delay is not due to the ISA transfer process (both banks also use the BACs ISA transfer service). I've applied to other banks as a new customer and arranged ISA transfers many times in the past and the whole thing has often been sorted in a matter of days, or a week or two at the most if paper forms are involved.

If Charter don't back-date the interest to the time of application then that will be unacceptable to me, as the ISA I want to transfer has been stuck on a poor rate for the last 6 weeks. If it wasn't for the fact that fixed rates have dropped considerably during that time, I would have already contacted them and told them to forget it. If this drags into the new year, I may yet do this anyway out of principal.

Has anyone else had similar experiences with Charter's inefficiencies or have I just been unlucky ?

I've had exactly the same problem with the 2 year bond I applied for. Every time I've called I keep being told my application is still with the account opening team.

I've just given up and put my money elsewhere.

refluxer

Thanks for all your feedback. Sounds like banking with them is essentially sound, however they're currently struggling with the workload of opening accounts for new customers.

I will continue to be patient but will be pulling the plug if it's not sorted soon. This could be trickier with a potential of an ISA transfer to be underway, though. Presumably I could contact my existing provider and instruct them to ignore any transfer request ?