Cash ISA Transfer Out from Trading 212 to VM

financehelp23

Hi, I want to find out how long it takes from the date money is deducted from the Trading 212 account and received in another bank, such as Virgin Money.  Training 212 said up to 3 business days. Who will cover these 3 days' interests and if they fail to clear in 3 days? Who shall I contact to make a complaint? VM said is not them but T212 said they sent money. It is like balls throwing to each other. You do not even see the money in either accounts..

eskbanker

Interest should be dovetailed so that the new provider pays it from the day after it left the old provider, but that's just recommended practice rather than cast in stone, so there's no guarantee that it'll be earning interest every day and so not necessarily any right to claim it from either party if the money is in transit over multiple days.

financehelp23

eskbanker said:

Interest should be dovetailed so that the new provider pays it from the day after it left the old provider, but that's just recommended practice rather than cast in stone, so there's no guarantee that it'll be earning interest every day and so not necessarily any right to claim it from either party if the money is in transit over multiple days.

T212 sent the cheque. But the cheque may be lost on the way. VM can not inform T212 until 14 days past. It is possible I do not have this money for over 20 days But why T212 deducted from my account while still on the way to be received and cleared by the other bank? How can a customer lose interest for over 20-30 days if need to resend a cheque? The money is in either bank account not the customer's. It is not fair for customers to not get interested. T212 may will not action until VM informs them after 14 days cheque was lost... 

eskbanker

I'm not trying to justify the current process, simply seeking to explain what it is!  The regulations require that cash ISA transfers are completed within 15 business days, i.e. three weeks, and, as above, there's no actual regulatory or legal obligation for the money to be earning interest throughout, however unfair that may seem.

financehelp23

T212 said they has been requested send by bank transfer and they sent 1st Oct. VM said they requested send by cheque. They are still waiting. I do not know who is telling the truth now. One side cheque one said Bacs. If bacs why need 5 days. So confused 

gt94sss2

VM can accept ISA transfers electronically - don't know why it appears that they are insisting on a cheque in your case. 

As it is, if you requested the transfer to VM it is them you should be dealing with. 

It is normal for the losing provider to close an ISA account once they have sent the funds on.

financehelp23

T212 said they transferred Bacs, does that go to my account directly or does VM have to pick it up and manually put it in my account? Normally how many days take? Still not there..  I can not reach VM ISA team directly, CS has to request for you. If I knew it is so stressful to deal with them, I would not transfer... 

masonic

financehelp23 said:

T212 said they transferred Bacs, does that go to my account directly or does VM have to pick it up and manually put it in my account? Normally how many days take? Still not there..  I can not reach VM ISA team directly, CS has to request for you. If I knew it is so stressful to deal with them, I would not transfer... 

BACS powers the electronic system. VM will receive the money into its holding account and would need to apply it to your ISA separately. Transfers into VM are usually relatively easy. It is transfers out of VM that tend to be problematic.

financehelp23

masonic said:

financehelp23 said:

T212 said they transferred Bacs, does that go to my account directly or does VM have to pick it up and manually put it in my account? Normally how many days take? Still not there..  I can not reach VM ISA team directly, CS has to request for you. If I knew it is so stressful to deal with them, I would not transfer... 

BACS powers the electronic system. VM will receive the money into its holding account and would need to apply it to your ISA separately. Transfers into VM are usually relatively easy. It is transfers out of VM that tend to be problematic.

Thanks, this is very helpful. Although I gave my Virgin bank details, they still will transfer to the holding account? T212 should get the Virgin bank account details from the Virgin. But Virgin said they requested a cheque. I do not know who is telling the truth now. Do you know what is the next step? Virgin said something about 15 days, if it is 15 days, they will ask for money again from T212. By that time, can they talk and resolve where is the money? The process has been over a month now. Virgin chased once before, but this is the 2nd 15 days. It seems T212 TRANSFER OUT is not easy either...

eskbanker

financehelp23 said:
Although I gave my Virgin bank details, they still will transfer to the holding account?

Can you clarify what you mean here, i.e. which Virgin bank details did you supply, and to whom?

The ISA transfer process needs to be driven exclusively by the receiving provider, so if you're transferring from T212 to VM, you should only need to tell VM about where they're transferring from rather than engaging with T212 at all - I get that this transfer doesn't seem to be progressing particularly smoothly, but too many channels of communication might hinder rather than help.

financehelp23

eskbanker said:

financehelp23 said:
Although I gave my Virgin bank details, they still will transfer to the holding account?

Can you clarify what you mean here, i.e. which Virgin bank details did you supply, and to whom?

The ISA transfer process needs to be driven exclusively by the receiving provider, so if you're transferring from T212 to VM, you should only need to tell VM about where they're transferring from rather than engaging with T212 at all - I get that this transfer doesn't seem to be progressing particularly smoothly, but too many channels of communication might hinder rather than help.

I see, I provided my VIRGIN account number and sort code plus transfer Ref to T212. Some Virgin staff say they can transfer directly but some said they need ref to allocate. I filled out an online complaint form, but Virgin did not reply. Virgin ISA team does not have a direct line, every time has to wait for CS to either ask them questions or email ISA team. They only have limited access to their system. They still say they are waiting for the cheque while T212 said sent by Bacs(do not know which bank account they sent). What shall I do next? A month now from the start of the transfer. A week of money has been deducted. Will Virgin contact T212 soon to request money, Virgin did not know they transferred until I told Virgin. The governance guidance said that once transferred funds have 3 days to clear and t212 needs to inform Virgin. If I did not read wrong. I am not sure if T212 informed them otherwise how can Virgin not find or allocate the money?