KRBS complaint about restrictive ISA T&Cs

E_zroda

I have logged a complaint with KRBS about their requirement to transfer in full all existing current year ISA subscriptions to them  - if you are to open a new KRBS ISA .
Their official final response:
'Whilst the government announced new ISA rules with the hope of making ISAs more flexible for customers, this is not a mandatory change, but we are in the process of looking into how we can implement this change for our customers. Our ISA declaration still states the above with no changes to the process as yet.
We are currently looking at implementing blahblahblah'.
So no dice. I doubt raising this with FOS will bear any fruit. Anyone did this with favourable outcome?
Thanks,

MattMattMattUK

E_zroda said:

I have logged a complaint with KRBS about their requirement to transfer in full all existing current year ISA subscriptions to them  - if you are to open a new KRBS ISA .
Their official final response:
'Whilst the government announced new ISA rules with the hope of making ISAs more flexible for customers, this is not a mandatory change, but we are in the process of looking into how we can implement this change for our customers. Our ISA declaration still states the above with no changes to the process as yet.
We are currently looking at implementing blahblahblah'.
So no dice. I doubt raising this with FOS will bear any fruit. Anyone did this with favourable outcome?
Thanks,

There is no point in raising it with the FOS, that would just be wasting everyone's time. It is their rules and they are within the regulations. 

clairec666

No point in complaining - what they're doing is allowable by current ISA rules as I understand them. No idea whether the rule is enforceable, or whether it will put customers off from using them.

Worth reading the T&Cs in depth as it's buried deep at the bottom: "Currently, you are unable to subscribe with Kent Reliance if you have already subscribed 

with another provider, unless you are transferring all current year funds to us."

dunstonh

I doubt raising this with FOS will bear any fruit. 

It won't because it is up to providers to offer it or not, and the FOS have no ability to force a provider to offer something they do not.

OrangeBlueGreen

This is interesting. Genuine question: is there a way of them finding out? I find it odd that a company could dictate this kind of stuff, though I acknowledge that it's most likely down to old systems. I admit I've not checked with any provider if they have this clause or not (just because I wouldn't have even thought this was a thing). 

friolento

MattMattMattUK said:

E_zroda said:

I have logged a complaint with KRBS about their requirement to transfer in full all existing current year ISA subscriptions to them  - if you are to open a new KRBS ISA .
Their official final response:
'Whilst the government announced new ISA rules with the hope of making ISAs more flexible for customers, this is not a mandatory change, but we are in the process of looking into how we can implement this change for our customers. Our ISA declaration still states the above with no changes to the process as yet.
We are currently looking at implementing blahblahblah'.
So no dice. I doubt raising this with FOS will bear any fruit. Anyone did this with favourable outcome?
Thanks,

There is no point in raising it with the FOS, that would just be wasting everyone's time. It is their rules and they are within the regulations. 

I would disagree that their rules are within the regulation. 

Their incorrect rules are also easily bypassed so I wouldn't bother with a complaint.

friolento

dunstonh said:

I doubt raising this with FOS will bear any fruit. 

It won't because it is up to providers to offer it or not, and the FOS have no ability to force a provider to offer something they do not.

It is not in the powers of any provider to force you to transfer any current year's subscription to them if all you want to do is open another ISA.  Providers also have no means of finding out what ISAs you have already subscribed to, unless you tell them (which you are not obliged to do).

If I really wanted an ISA with KRBS (or with their sister outfit, Charter), I would find it easy to do so.

masonic

clairec666 said:

No point in complaining - what they're doing is allowable by current ISA rules as I understand them. No idea whether the rule is enforceable, or whether it will put customers off from using them.

Worth reading the T&Cs in depth as it's buried deep at the bottom: "Currently, you are unable to subscribe with Kent Reliance if you have already subscribed 

with another provider, unless you are transferring all current year funds to us."

Under the current ISA rules there are no restrictions to the number of current year cash ISAs you can subscribe to, and no provision in the legislation for the provider to impose an exclusivity term upon the consumer. The internal KRBS declaration would appear to breach the Consumer Rights Act and potentially also the Competition Act, so that would be the avenue to pursue with the FOS if going down that route. Firms are not permitted to interfere in your consumer relationships with other firms. The FCA also considers consumer freedom in the market one of its core outcomes. But as mentioned above, the FOS cannot force KRBS to accept the OP's application, only provide some compensation for lost interest and/or distress & inconvenience.

The FCA invites reports from consumers about unfair terms in contracts: https://www.fca.org.uk/consumers/unfair-contracts - this would seem to tick the "limit your legal rights unfairly" box.

I'd put it to the OP, the T&Cs stating that "Currently, you are unable to subscribe..." can be easily tested and found to be incorrect. If you open a KRBS cash ISA, while holding current year subscriptions elsewhere, you will find you can easily subscribe to it without transferring any other current year funds to them.

E_zroda

Thanks to the posters so far.
I have actually opened their ISA (not read the T&Cs all the way down, admittedly. Once I saw the exclusion I phoned and asked for it to be closed.
I also think there is no way of KRBS of finding out if I was in breach, but decided not to take chances.
I do wonder though: If at the beginning of the new tax year, if KRBS is the first ISA that I open in the new year and then continue opening subsequently ISAs with other providers, would I technically still be in breach  of the KRBS T&Cs?, the get-out-of-jail word being 'already'

'Currently, you are unable to subscribe with Kent Reliance if you have already subscribed

with another provider, unless you are transferring all current year funds to us.'

masonic

You are correct that they don't appear to require you not to subscribe elsewhere after opening their ISA.