Flexible cash ISA spread across different providers

masonic

JSmith321 said:

masonic said:

Reading between the lines (and noticing the OP's other thread), I'd guess a conversation was had about ISA flexibility when holding multiple ISAs where the subject was discussed. The better informed amongst us know that for a trouble free experience you should never enter into a discussion with bank staff about ISAs (as they are so badly informed), but it shouldn't have to be that way.

I've been frankly shocked by the lack of knowledge among banking staff as far as multiple cash ISA's are concerned. The Financial Ombudsman needs to get a grip and warn the institutions if they don't adhere to the ISA rules they will have their banking licence suspended or at least not allowed to offer ISAs.

All the Financial Ombudsman can do is uphold complaints brought to them by consumers. Though the precedent set by a published decision is likely to change the stance of these providers. There has not yet been a case in this area that has gone before an Ombudsman and been published.

The FCA has the power to warn institutions, though it is only likely to act if this issue is seen to be impacting a lot of consumers.

While it is HMRC that grants providers permission to offer ISAs.

Nothing will happen at all unless consumers complain and dig their heels in when firms do not back down.

camclay

badger09 said:

How do Paragon know about your Zopa ISA?

I had asked them a question about having ISAs with different providers.  In fact I even told them on the phone I had opened one with Zopa and agreed with them that they wouldn't be able to track my allowance properly and they agreed - but at that stage did not tell me not to open one!

camclay

JSmith321 said:

masonic said:

Reading between the lines (and noticing the OP's other thread), I'd guess a conversation was had about ISA flexibility when holding multiple ISAs where the subject was discussed. The better informed amongst us know that for a trouble free experience you should never enter into a discussion with bank staff about ISAs (as they are so badly informed), but it shouldn't have to be that way.

I've been frankly shocked by the lack of knowledge among banking staff as far as multiple cash ISA's are concerned. The Financial Ombudsman needs to get a grip and warn the institutions if they don't adhere to the ISA rules they will have their banking licence suspended or at least not allowed to offer ISAs.

Yes exactly.  They have transferred my money to my nominated account and closed the ISA.  I am furious.  They then told me that interest awarded this year from last year's ISA could not be paid back to them without affecting this year's allowance in my (now) ZOPA ISA! I mean, how ridiculous.  I told them they were absolutely wrong.  It seems that very very few staff understand how ISAs work!  That's why I have come on here - to discuss with people who do understand them.  I am absolutely astonished how little the bank knows.  I have taught probably about 4 different staff at Paragon things about ISAs they never knew before.  My feeling is that I should pursue this all the way.  I understand that it was a bad idea to discuss other providers with them- but I believed from all the government rules that i had read, that there was no risk in being open and transparent and having sensible discussions with them.  I was so wrong!! I have been made to feel like i have broken the law and I haven't.  At the end of today I agreed to close the account and take the money out but i calmly said to them that i genuinely believe they have got the rules completely wrong.