Cash ISA Transfer Times

masonic

Dewpoint said:

The FCA is responsible for setting the rules that ALL banks and buildings and societies have to adhere to. It's the regulatory body that can actually do something about the pathetically tardy response that I've encountered with financial institutions when it comes to ISA transfers. The more complaints it gets the more pressure it will feel to act.

Complaining to individual banks won't resolve the problem imo. Most have had to be dragged kicking and screaming into the 21st century anyway.

I can assure you that the FCA will not feel pressured to do anything based on people misusing a complaints process intended for something else. It states clearly that it won't investigate complaints about its rules or complaints about firms it regulates. 

The FCA is overseen by parliament, specifically, the Treasury Select Committee. You can ask your local MP to raise the issue with them if you want to pressure the FCA. Meanwhile, the only way to get redress for a specific transfer problem is to complain to the bank responsible.

Dewpoint

masonic said:

Dewpoint said:

The FCA is responsible for setting the rules that ALL banks and buildings and societies have to adhere to. It's the regulatory body that can actually do something about the pathetically tardy response that I've encountered with financial institutions when it comes to ISA transfers. The more complaints it gets the more pressure it will feel to act.

Complaining to individual banks won't resolve the problem imo. Most have had to be dragged kicking and screaming into the 21st century anyway.

I can assure you that the FCA will not feel pressured to do anything based on people misusing a complaints process intended for something else. It states clearly that it won't investigate complaints about its rules or complaints about firms it regulates. 

The FCA is overseen by parliament, specifically, the Treasury Select Committee. You can ask your local MP to raise the issue with them if you want to pressure the FCA. Meanwhile, the only way to get redress for a specific transfer problem is to complain to the bank responsible.

I'm sorry but that's utter nonsense. People have every right to complain to the FCA if they feel that the organisation itself is failing them - and it is! The problem applies to ALL banks, because the FCA allows them to get away with diabolically poor service.

And it's not a misuse of the system if the complaint is directed at the FCA. They are in the position to fix it and they should.

BTW: The FCA has already had a record number of complaints about this issue. Contacting MPs about financial issues (or anything else for that matter) is a complete waste of time in my experience.

masonic

Dewpoint said:

masonic said:

Dewpoint said:

The FCA is responsible for setting the rules that ALL banks and buildings and societies have to adhere to. It's the regulatory body that can actually do something about the pathetically tardy response that I've encountered with financial institutions when it comes to ISA transfers. The more complaints it gets the more pressure it will feel to act.

Complaining to individual banks won't resolve the problem imo. Most have had to be dragged kicking and screaming into the 21st century anyway.

I can assure you that the FCA will not feel pressured to do anything based on people misusing a complaints process intended for something else. It states clearly that it won't investigate complaints about its rules or complaints about firms it regulates. 

The FCA is overseen by parliament, specifically, the Treasury Select Committee. You can ask your local MP to raise the issue with them if you want to pressure the FCA. Meanwhile, the only way to get redress for a specific transfer problem is to complain to the bank responsible.

I'm sorry but that's utter nonsense. People have every right to complain to the FCA if they feel that the organisation itself is failing them - and it is! The problem applies to ALL banks, because the FCA allows them to get away with diabolically poor service.

And it's not a misuse of the system if the complaint is directed at the FCA. They are in the position to fix it and they should.

BTW: The FCA has already had a record number of complaints about this issue. Contacting MPs about financial issues (or anything else for that matter) is a complete waste of time in my experience.

No, that's incorrect. The FCA is not consumer facing and the only complaint you can make via that channel is that the FCA has not acted in accordance with its own rules or the law. You cannot get the FCA complaints scheme to investigate a complaint that you don't like the FCA's rules or the law. It literally states this on its complaints page.

I don't know what should be inferred by a "record number of complaints about this issue". We've just had a record number of interactions.

xylophone

from Marcus, 6 weeks ago

My slowest ever cash ISA transfer was from Marcus  to Coventry BS -  I started the process on 1st September and it didn't finally complete until  5th October (albeit that interest was backdated to 26th October (date on cheque from Marcus).

 There were some postal delays at the time but  anyway a wait of several days was to be expected as Marcus does not use the electronic transfer system.

I started on line with Coventry who sent me a form to complete which had to be sent back to them so that they could send a request form with "wet" signature to Marcus.

Marcus advised  me of receipt of the request - they then (eventually) sent a cheque to Coventry BS.

 

By way of comparison, electronic transfers to/from Skipton BS, Virgin Money, Nationwide have taken as little as 24 hours.

Beddie

It's interesting that we expect a fast reliable service on ISA transfers, when just about every other aspect of living in the UK is badly run and riddled with incompetence. 

searching4bestrates

subjecttocontract said:

Transfer times vary from just a few days to a very long time. I've had both, it's frustrating. I now make sure that any ISA provider is mainstream and subscribes to the bacs electronic ISA transfer service. I don't believe Marcus (Goldman Sachs) does.

This has been my experience too. I used to have a Marcus ISA but transferred it to another provider some time ago. The transfer took about a month as it was, to my dismay (I didn't realise at the time of opening and assumed it would be "electronic"), and was fairly tortuous.

I've since moved my ISA again (a couple of times this tax year from memory!) and this has been "electronic" and completed within a few days.

I too steer clear of those that don't offer the "electronic" transfer service, despite some of them (Marcus and Principality) often having pretty good/leading rates.

Overall, I don't think the process is too bad/slow given there are a number of regulatory hurdles that both ISA providers need to pass through to ensure compliance during an individual's transfer.

Dewpoint

Beddie said:

It's interesting that we expect a fast reliable service on ISA transfers, when just about every other aspect of living in the UK is badly run and riddled with incompetence. 

That may be true, but we shouldn't stand idly by and put up with utterly Dickensian service.

Having worked with them for 20+ years, Financial institutions aren't known for their responsiveness, efficiency or for embracing new technology. Their profits and shareholder's dividends are almost guaranteed at our expense.

That's why those who think the delays and rules for the current ISA transfer process are totally inadequate should complain to the FCA and copy the Financial Services Ombudsman. The more complaints they get the more pressure to improve.

See here:

https://www.thisismoney.co.uk/money/saving/article-11644587/Savers-hit-delays-bungles-Isa-transfers.html

Would you believe some institutions still use snail-mail to do these transfers; send cheques!

Complain here: despite what some naysayers on this forum believe, the FCA do respond to complaints. 

Email the FCA and copy the FSO.

complaint.info@financial-ombudsman.org.uk

complaints.scheme@fca.org.uk

Albermarle

That may be true, but we shouldn't stand idly by and put up with utterly Dickensian service

It is not entirely relevant, but if you have ever had to deal with one of the big private sector defined benefit administrators, then you would really  know what Dickensian felt like.

Never mind 3 weeks for an ISA transfer, even getting an acknowledgement at all that they have received your initial application or query in 3 weeks would be a minor miracle . Whilst any actual action/resolution is measured in months rather than weeks.

masonic

The Financial Ombudsman Service is actually a sensible option for a complaint, provided you have first complained to the firm and given them sufficient opportunity to resolve your complaint. The FOS do pass information about the volume of complaints they receive about certain issues to the FCA, which is used to better regulate the firms in future. If you contact the FOS before complaining to the firm in question, then they will help you to make the necessary complaint to the firm.