Cash ISA is 'orphaned' - what happens next?

SamDude

We wanted to move my wife's cash ISA from CMC to Cynergy, but Cynergy do not recognise CMC so we had to transfer the CMC ISA via another route (her Virgin Money ISA).

Plan: CMC > Virgin. Then Virgin (inc CMC) > Cynergy.

I requested the transfer of the CMC ISA to Virgin and should have waited for it to complete before requesting the Virgin ISA transfer to Cynergy - but I didn't. I thought I could time it so the CMC ISA would transfer into the Virgin ISA, and a few days later it would all transfer to Cynergy.

Sooo, the Virgin ISA was transferred to Cynergy before the incoming CMC ISA - so a few days later the CMC has transferred out, but not arrived in the Virgin ISA (because it doesn't exist!). The CMC ISA is now 'out there somewhere'.

What happened: Virgin > Cynergy. CMC > ???

Will it be rejected/returned by Virgin to CMC? or will they transfer it 'forward' to Cynergy?

refluxer

I'm not sure what the procedure is if a transfer is attempted into an ISA account that no longer exists but, as Virgin have already carried out your instructions to do a full transfer to Cynergy, they aren't going to subsequently forward the CMC funds to Cynergy and they wouldn't have done this even if the Virgin ISA still existed, as that would require an additional transfer request.

If CMC don't use the BACs ISA transfer service, do you know if they've transferred the funds by cheque ?

I think the best plan is to contact Virgin and explain the situation to see what they can advise. 

SamDude

Update to say that we called Virgin Money who checked and confirmed that the transfer-in had been received and rejected (as there was no longer an ISA to transfer into).
We called CMC who confirmed that it had been returned and has now been allocated back to the original CMC ISA.