Delay in transferring to new ISA provider

eskbanker

Not sure anyone is opining about whether it's satisfactory or not - I was simply highlighting that the rules were some distance from your expectations, but one or both of the providers has now failed to meet the defined standard anyway.  If the cheque is now in the post then it's unlikely that there's anything you can do to expedite matters from here, but the interest should be backdated to the date of the cheque and you do have the option of logging a complaint with one or both of the providers.  You can also name them on here!

35har1old

Silw said:

Good afternoon,
I am hoping someone can help explain the delay in transferring from 1 ISA provider to another. Definitely benefits the provider not the saver!
I and daughter both hold cash ISAs.
The ISAs were held in 1 year fixed rate bonds maturing on 18/01/2023.
I started to look round for the best rates available currently( using MSE site😀) and found a better rate than our current provider was offering.
We opened new fixed rate bonds during the first week in January with another provider ( on line) but ticked the appropriate box to say not to have the funds transferred  until after 18/01/ 2023 when the bonds matured. I presumed wrongly! that the transfers would take place on either the 19th or 20th as I again presumed this is just an electronic transfer which could easily be set up in advance and the old provider was obviously notified by the new provider on or around the 7th January that I and daughter were moving provider..
I and my daughter indeed received letters from the new provider dated 7th January to say the accounts had been opened and were waiting for funds….correct.
Today I and my daughter receive letters from the old provider who held the bonds that matured on 18th. It states that the money held in the bonds has been transferred to 30 day deposit accounts awaiting instructions on what we want to do with the funds. It does state that if we have already arranged a transfer then that is in progress or words to that effect and if the transfers takes place before the 30 days we will not be penalised.
However, I do not see why there should be any delay as we set up the new accounts and instructions within plenty of time. I telephoned my new provider who informs me there could be a delay of anything up to 15 working days? What!
Evidently this is within the t&cs of cash ISAs. This is extremely beneficial to banks.
Effectively my old provider has my and my daughters money on a poor interest account earning less than if it was in the new bond I have set up. Why the delay? 
Ok the amount of interest I am loosing is not huge but I and my daughter have a not inconsiderable mount of money saved within the ISA wrapper, well over 6 figures. It is currently earning 2.80% in the 30 day notice account. It would be earning nearly 4% if it was where it should be as of today to my mind.
If this situation is mirrored by millions of pounds then the amounts banks are making out of delaying transfer is not insignificant. Bit like the banker who stole a penny out of everybody’s accounts each month. Do that often enough and it amounts to a fair sum. Many a mickle macks a muckle as the Scots say!
I would be very grateful if anyone could confirm  that banks are allowed to delay transfer requests of cash ISAs up to 15 working days and if so maybe advise me who I should contact to challenge this as to my mind this appears a nice little earner for the banks,  holding savers funds in poor interest bearing accounts.
Thank you in advance.
Thought this relevant to Martin Lewis as he has been advising people to check and transfer ISAs if they are not currently getting the best rates available.

I applied for a ISA Transfer on 17-11-22 from a cash ISA to a fixed rate ISA which took to 13-01-23 to complete due to a error on new providers side in which they had applied a wrong code on the ISA transfer request 

rallycurve

35har1old said:

Silw said:

Good afternoon,
I am hoping someone can help explain the delay in transferring from 1 ISA provider to another. Definitely benefits the provider not the saver!
I and daughter both hold cash ISAs.
The ISAs were held in 1 year fixed rate bonds maturing on 18/01/2023.
I started to look round for the best rates available currently( using MSE site😀) and found a better rate than our current provider was offering.
We opened new fixed rate bonds during the first week in January with another provider ( on line) but ticked the appropriate box to say not to have the funds transferred  until after 18/01/ 2023 when the bonds matured. I presumed wrongly! that the transfers would take place on either the 19th or 20th as I again presumed this is just an electronic transfer which could easily be set up in advance and the old provider was obviously notified by the new provider on or around the 7th January that I and daughter were moving provider..
I and my daughter indeed received letters from the new provider dated 7th January to say the accounts had been opened and were waiting for funds….correct.
Today I and my daughter receive letters from the old provider who held the bonds that matured on 18th. It states that the money held in the bonds has been transferred to 30 day deposit accounts awaiting instructions on what we want to do with the funds. It does state that if we have already arranged a transfer then that is in progress or words to that effect and if the transfers takes place before the 30 days we will not be penalised.
However, I do not see why there should be any delay as we set up the new accounts and instructions within plenty of time. I telephoned my new provider who informs me there could be a delay of anything up to 15 working days? What!
Evidently this is within the t&cs of cash ISAs. This is extremely beneficial to banks.
Effectively my old provider has my and my daughters money on a poor interest account earning less than if it was in the new bond I have set up. Why the delay? 
Ok the amount of interest I am loosing is not huge but I and my daughter have a not inconsiderable mount of money saved within the ISA wrapper, well over 6 figures. It is currently earning 2.80% in the 30 day notice account. It would be earning nearly 4% if it was where it should be as of today to my mind.
If this situation is mirrored by millions of pounds then the amounts banks are making out of delaying transfer is not insignificant. Bit like the banker who stole a penny out of everybody’s accounts each month. Do that often enough and it amounts to a fair sum. Many a mickle macks a muckle as the Scots say!
I would be very grateful if anyone could confirm  that banks are allowed to delay transfer requests of cash ISAs up to 15 working days and if so maybe advise me who I should contact to challenge this as to my mind this appears a nice little earner for the banks,  holding savers funds in poor interest bearing accounts.
Thank you in advance.
Thought this relevant to Martin Lewis as he has been advising people to check and transfer ISAs if they are not currently getting the best rates available.

I applied for a ISA Transfer on 17-11-22 from a cash ISA to a fixed rate ISA which took to 13-01-23 to complete due to a error on new providers side in which they had applied a wrong code on the ISA transfer request 

Out of curiosity, did you get any compensation from your new provider? Does anyone know if this error would be a case for a formal complaint and even raise it to the financial ombudsman if required?

eskbanker

rallycurve said:

35har1old said:

I applied for a ISA Transfer on 17-11-22 from a cash ISA to a fixed rate ISA which took to 13-01-23 to complete due to a error on new providers side in which they had applied a wrong code on the ISA transfer request 

Out of curiosity, did you get any compensation from your new provider? Does anyone know if this error would be a case for a formal complaint and even raise it to the financial ombudsman if required?

If an institution admits an error then they would leave themselves open to a complaint, and if there's a demonstrable tangible financial loss arising from that, then expecting them to make it good wouldn't be unreasonable, although that doesn't necessarily mean that there's actually a legal or regulatory obligation to do so.  If the institution was unwilling to offer any redress in response to a complaint, then the complainant does have the option of escalating to FOS, who might side with the consumer, but it's not clear cut....

35har1old

rallycurve said:

35har1old said:

Silw said:

Good afternoon,
I am hoping someone can help explain the delay in transferring from 1 ISA provider to another. Definitely benefits the provider not the saver!
I and daughter both hold cash ISAs.
The ISAs were held in 1 year fixed rate bonds maturing on 18/01/2023.
I started to look round for the best rates available currently( using MSE site😀) and found a better rate than our current provider was offering.
We opened new fixed rate bonds during the first week in January with another provider ( on line) but ticked the appropriate box to say not to have the funds transferred  until after 18/01/ 2023 when the bonds matured. I presumed wrongly! that the transfers would take place on either the 19th or 20th as I again presumed this is just an electronic transfer which could easily be set up in advance and the old provider was obviously notified by the new provider on or around the 7th January that I and daughter were moving provider..
I and my daughter indeed received letters from the new provider dated 7th January to say the accounts had been opened and were waiting for funds….correct.
Today I and my daughter receive letters from the old provider who held the bonds that matured on 18th. It states that the money held in the bonds has been transferred to 30 day deposit accounts awaiting instructions on what we want to do with the funds. It does state that if we have already arranged a transfer then that is in progress or words to that effect and if the transfers takes place before the 30 days we will not be penalised.
However, I do not see why there should be any delay as we set up the new accounts and instructions within plenty of time. I telephoned my new provider who informs me there could be a delay of anything up to 15 working days? What!
Evidently this is within the t&cs of cash ISAs. This is extremely beneficial to banks.
Effectively my old provider has my and my daughters money on a poor interest account earning less than if it was in the new bond I have set up. Why the delay? 
Ok the amount of interest I am loosing is not huge but I and my daughter have a not inconsiderable mount of money saved within the ISA wrapper, well over 6 figures. It is currently earning 2.80% in the 30 day notice account. It would be earning nearly 4% if it was where it should be as of today to my mind.
If this situation is mirrored by millions of pounds then the amounts banks are making out of delaying transfer is not insignificant. Bit like the banker who stole a penny out of everybody’s accounts each month. Do that often enough and it amounts to a fair sum. Many a mickle macks a muckle as the Scots say!
I would be very grateful if anyone could confirm  that banks are allowed to delay transfer requests of cash ISAs up to 15 working days and if so maybe advise me who I should contact to challenge this as to my mind this appears a nice little earner for the banks,  holding savers funds in poor interest bearing accounts.
Thank you in advance.
Thought this relevant to Martin Lewis as he has been advising people to check and transfer ISAs if they are not currently getting the best rates available.

I applied for a ISA Transfer on 17-11-22 from a cash ISA to a fixed rate ISA which took to 13-01-23 to complete due to a error on new providers side in which they had applied a wrong code on the ISA transfer request 

Out of curiosity, did you get any compensation from your new provider? Does anyone know if this error would be a case for a formal complaint and even raise it to the financial ombudsman if required?

NO compensation paid.

Would be hard to prove who was at fault.

As to the financial ombudsman my experience in the past has been negative. 

eskbanker

35har1old said:

rallycurve said:

35har1old said:

I applied for a ISA Transfer on 17-11-22 from a cash ISA to a fixed rate ISA which took to 13-01-23 to complete due to a error on new providers side in which they had applied a wrong code on the ISA transfer request 

Out of curiosity, did you get any compensation from your new provider? Does anyone know if this error would be a case for a formal complaint and even raise it to the financial ombudsman if required?

NO compensation paid.

Would be hard to prove who was at fault.

As to the financial ombudsman my experience in the past has been negative. 

You said that the error was on the new provider's side, weren't you able to support that?

35har1old

eskbanker said:

35har1old said:

rallycurve said:

35har1old said:

I applied for a ISA Transfer on 17-11-22 from a cash ISA to a fixed rate ISA which took to 13-01-23 to complete due to a error on new providers side in which they had applied a wrong code on the ISA transfer request 

Out of curiosity, did you get any compensation from your new provider? Does anyone know if this error would be a case for a formal complaint and even raise it to the financial ombudsman if required?

NO compensation paid.

Would be hard to prove who was at fault.

As to the financial ombudsman my experience in the past has been negative. 

You said that the error was on the new provider's side, weren't you able to support that?

I had sent a secure message to the new provider when i received a letter saying that the old provider had responded no account found.

I checked the details of what i had submitted these where correct. I attached a screenshot of the details taken from the old provider web page to the secure message.

I then raised a complaint with the old provider and then received phone call in which i was informed that unless the new provider enters the correct code on the transfer request it would raise the message no account found. But does not record the request being made. I was given the code that was required for the transfer request.

Phoned the new provider and gave them the code. This was all done over the phone so i have no paper trail to raise a complaint.
Its a case of he said she said