Chip ISA and unable to close account

Myres328

I opened a Chip ISA, only to find that the Chip App wanted what appeared to be access to my bank account incomings and outgoings.  Not happy with having an App (and I assume Chip staff?) looking at my bank account in this manor and monitoring my life and transactions, I decided to close the account on the same day that I opened it and went somewhere else for ISA services.  I am now two weeks in and still not able to close the account.  My experience with Chip so far has been extremely negative and the Chip team seem unable to help with closing the account.  It’s now been escalated to the complaints team and I am now being told “we will get back to you soon”.  I am sure most people would agree that where money is involved, you would hope that you would receive an update within a defined time frame of perhaps 1 to 2 days.

Contacting Chip seems rather difficult to me.  You can either email the Chip team using one email address ( & be uncertain when you may hear back), or write them a letter.  You can not speak to someone. 

They have the ability to talk to them via an App Chat, which for me they simply stopped responding to after I asked for my account to be closed for a second time and information on how I could complain. 

The Chip system allowed me to create a Chip ISA account using an email address that did not exist, so please be warned.  Entering an incorrect email address accidentally may cause you problems and I have no idea what (if any) introduction emails (or T’s&C’s) may have been sent (& rejected, as the email address did not exist for a number of hours when the account was created).  With most systems when you create an online account of any kind, a person needs to validate the email address (Similar to signing up to the MoneySaving Expert website).  Thinking it odd that I had not even received any start up / welcome emails, I then realised that I had entered incorrect information and rushed to create the email address I entered and was fortunate that it was not in use.

If you use the App Chat area, please consider taking screen shots of the chat session.  Although I now have evidence of the second App Chat to aid with my a Financial Ombudsman complaint and HMRC if required at a later date, the Chip team seem keen to close down Chat sessions promptly and without resolving any of my queries or questions, including the original request to close my account.

It appears to me that Chip do not fall under the FSCS and your (if applicable – your savings account) funds are held with their partner known as ClearBank who are regulated.  Had I carried out my due diligence first in this area, Chip would not have been an organisation I would have used.  The Cash ISA interest rate made it appealing to me at the time and I was keen to use my allowance this year.  I see this as a lesson learnt for me.  That aside, the Financial Ombudsman may be able to help if you have any complaints that are not resolved satisfactory and I am hopeful of not having to go down this route at the moment.

If you have had similar problems with closing your Chip account, I would be happy to hear them, so that I may try to resolve my issues.  I currently have two cash ISA’s open, which is not allowed and Chip will not close my unwanted (zero money added and not linked to my bank account) down.

amanda1024

I haven’t tried to close any chip accounts - they’re just sitting there with no money in. But having two (or more) cash ISAs *is* allowed, what’s not allowed is paying new money into more than one cash ISA in the same tax year (and that’s changing next tax year anyway)

Shortlands_Shopper

Myres328 I am having same issue and also trying to close (delete the account) and it’s like mission impossible! 

Catplan

I have a chip savings account but not the isa won’t it be closed if not funded after a period of time? 

I mean leaving it with a zero balance should have any impact on you? I’d forget and move on tbh.

freeguy1984uk

I opened a Chip account this month for the ISA too, and also got instantly put off by them wanting direct access to my current account.  I'm surprised more people aren't talking about this on here.

"Connect your account.

Chip would like 90-day access to your HSBC account details.

Chip needs your permission to access the following information:

- Full name (this is fine).

- Account number and sort code (fine).

- Balance (NOT FINE).

- Transactions, direct debits and standing orders (DEFINITELY NOT FINE)."

I have had many savings accounts with many providers over the years, and have never had to give any access of this sort before.

It's been a few weeks since I set it up my Chip account, and I'm just about to attempt to close it tonight, wish me luck.

It is at £0 balance so no harm if I end up stuck with it I suppose, but would prefer it gone...

boingy

Don't close it, transfer it. Open a new ISA somewhere and get them to transfer the Chip ISA to them.

And, as stated above, from last month it is OK to contribute to more than one Cash ISA in the same tax year.

Bigwheels1111

What’s the problem, open a dummy account, job done.
They see £10 in there.
All month.
It gets you near instantaneous transfers in and out.
2 or 3 of my savings are linked to my £10 account.

freeguy1984uk

Forgot to reply with how it went...

I answered a few questions to a live chat bot.

A few days later I checked the app and I had been logged out at some point.

I never got any email or letter or txt, etc, to say your account is now closed.

So I can only assume that the deletion of my account happened without fuss