Have I inadvertently tied myself to Kent Reliance for life?

Rusty190

Earlier this month, I opened an Easy Access cash ISA with Kent Reliance, fully funded from a matured ISA account with another provider.

I already have a fixed rate cash ISA account with KR - due to mature in November this year.

KR have written to me confirming the opening of the new account and on the Summary Box page, under additional information it states:

"Currently you are unable to subscribe with KR if you have already subscribed with another provider, unless you are transferring all current year funds to us".

I initially dismissed this, assuming that as the transfer comprises fully of "old money", current year funds were of no concern to KR.

However, also included in the paperwork is a form (in which they have printed the Easy Access ISA account no.) entitled "Application for missed ISA subscription" stating: 

"Because you did not subscribe to your KR ISA during the previous tax year, you are required to read and agree the following statements......"  it then asks for name, NI number etc etc and a declaration applying to subscribe for a cash ISA for the tax year 2024 - 2025 and each subsequent year until further notice.

I also have to declare that, among other things, "I have not subscribed and will not subscribe to another cash ISA in the same tax year that I subscribe to  this cash ISA".

Suffice to say, that ship has already sailed (!) therefore, I am unable to complete that form honestly as it is untrue.

Any advice here?

I can simply transfer these funds onwards again but my concern is this may impact on my existing K.R fixed rate, not yet matured ISA.

I am reluctant to ring them just now as I don't want to open a can of worms here.

All comments gratefully received.

jimjames

It's totally unenforceable and you can safely ignore it. No need to tell them as long as your total contributions are  £20k or under for the year, their call centre staff won't be able to give anything different to the documents. HMRC are the ones that set the rules and you can have more than 1 cash ISA per year as long as you're within the overall limit.

Rusty190

Why do they stipulate this then?

What do they gain from it?

The cynic in me wonders if it's some dastardly ploy to get out of paying any interest. 

subjecttocontract

Rusty190 said:

Why do they stipulate this then?

What do they gain from it?

The cynic in me wonders if it's some dastardly ploy to get out of paying any interest. 

Nobody, as far as I know, has come up with a plausible reason.

MeteredOut

subjecttocontract said:

Rusty190 said:

Why do they stipulate this then?

What do they gain from it?

The cynic in me wonders if it's some dastardly ploy to get out of paying any interest. 

Nobody, as far as I know, has come up with a plausible reason.

My guess is it is a mix of the old rules where you could only open on ISA with one provider in one tax year, and somebody updating those to reflect the new rules, but not understanding them properly.

Rusty190

MeteredOut said:

subjecttocontract said:

Rusty190 said:

Why do they stipulate this then?

What do they gain from it?

The cynic in me wonders if it's some dastardly ploy to get out of paying any interest. 

Nobody, as far as I know, has come up with a plausible reason.

My guess is it is a mix of the old rules where you could only open on ISA with one provider in one tax year, and somebody updating those to reflect the new rules, but not understanding them properly.

Well, you say that but having spent all day fretting over this, I'm not sure.
I also fail to see how this could be considered a fair and reasonable T&C. 

MeteredOut

Rusty190 said:

MeteredOut said:

subjecttocontract said:

Rusty190 said:

Why do they stipulate this then?

What do they gain from it?

The cynic in me wonders if it's some dastardly ploy to get out of paying any interest. 

Nobody, as far as I know, has come up with a plausible reason.

My guess is it is a mix of the old rules where you could only open on ISA with one provider in one tax year, and somebody updating those to reflect the new rules, but not understanding them properly.

Well, you say that but having spent all day fretting over this, I'm not sure.
I also fail to see how this could be considered a fair and reasonable T&C. 

Frankly. I've ignored any such T&Cs when opening ISAs - some others have similarly unenforceable clauses. But, I've not got one with KR.

eskbanker

Rusty190 said:

Earlier this month, I opened an Easy Access cash ISA with Kent Reliance, fully funded from a matured ISA account with another provider.

[...]

I also have to declare that, among other things, "I have not subscribed and will not subscribe to another cash ISA in the same tax year that I subscribe to  this cash ISA".

Suffice to say, that ship has already sailed (!) therefore, I am unable to complete that form honestly as it is untrue.

Any advice here?

If this account is solely to be used for prior year money transferred in from another provider, then you're not subscribing to it, i.e. you're not paying new money in, and therefore the clause doesn't apply.

However, if you wish to pay new money into it, as well as into ISAs with other providers in the same tax year, then that puts you in conflict with their Ts & Cs, even though it's not proscribed by the overall ISA rules, but realistically they won't get to find out about it....

Rusty190

OK folks. I shall bow to your superior knowledge but, I don't want you all running for the hills when the KR security guards come knocking!😉

It was mainly the form declaring I have not opened an Isa in the PREVIOUS tax year (ie. 2024 - 2025) that has me concerned - particularly as this Easy Access account wasn't opened until the current tax year. 

HSC_2

Mine matured at the start of this month and over 3 weeks later I still can't access the money because they haven't actioned my maturity instructions.  I've now missed the fixed rate I wanted to move it to.  I'll be leaving them as soon as I'm able to.  Was told 3 working days back on the 9th.

friolento

HSC_2 said:

Mine matured at the start of this month and over 3 weeks later I still can't access the money because they haven't actioned my maturity instructions.  I've now missed the fixed rate I wanted to move it to.  I'll be leaving them as soon as I'm able to.  Was told 3 working days back on the 9th.

I would raise a complaint if I were you. Their maturity process is pretty terrible in my experience - first they insist on sending the maturity options by letter, which then arrives a couple of days before maturity, leaving you next to no time to give them your instructions. Then they ignore the instructions you gave "too late" per secure message, and to top it all, they mature your ISA into another fixed term one. The only way out is a 14-day cancellation option, which by the sounds of it you may have missed now? I had to spend well over an hour on the phone to their terrible CS, who made everything incredibly difficult. They eventually agreed to implement my maturity instructions but it took them 3 working days before this was reflected in my online account. I have now been waiting for 12 working days for them to action my transfer-out request. It's a shame they have gone downhill so much, they used to be really good to deal with before they streamlined their CS by outsourcing it to India.