Isa transfer issue - asked for prior year transfer they requested in year!

Rich2808

I have identified an issue with an ISA transfer - which I would like advice on given the potential HMRC implications. This highlights potential issues with the systems of the new provider - who I don't wish to name but does get a lot of coverage on this sub forum!

At the end of November I requested an isa transfer from a split/portfolio ISA provider to another provider.  This was done via a paper form sent by post to the new provider - which I thankfully kept a copy of.

I requested a prior year transfer - but the new provider actually requested a current year transfer from my current split isa provider.

I have just been advised of this by my current provider - as when I subsequently made payments to them post the transfer recently it triggered an issue on their systems.  I am unclear how this has happened.

So I now apparently have current tax year payments with two cash ISA providers -  with the new provider and (via a couple of accounts) with my split isa provider - according to the previous/original provider. The remedies are not helpful as offered by the previous provider - they return the funds paid in since so I can't invest more into a cash ISA.

There was also an issue with another prior year transfer I did at the same time into the new provider from another provider where they asked them to wait for a notice period when I advised the new provider on the paper form there was no notice required (as it was an instant access ISA). This caused endless confusion - which meant the transfer request had to be done 3 times (with me having to discuss this via several calls with both providers) before it was processed. 

I am a bit bemused and confused as to where I stand now - as this appears to be an error by my new provider (requesting a current year transfer in error) but I am potentially in breach of HRMC rules.  I haven't spoken to the new provider yet - just the other provider.

Has anyone come across this before - and what are the solutions? As I don't think I should lose out financially when it was not my error?