Timescale to move from SIPP to drawdown AC with Hargreaves Lansdown?

Melvinsmum58

For anyone considering an official complaint, this is a recent complaint to the Financial ombudsman regarding delays in summer of 2024.

I find these paragraphs from the ombudsman interesting, particularly that it was reasonable for the complainant to expect his money within the original time frame. I wonder what the ombudsman would make of HL stating that they can’t meet 20 days but refusing to give an updated timescale.

In relation to the issues this complaint is considering, HLAM made the payment after 17 working days. The timeframe originally set of 10 working days I think is reasonable and this was clearly HLAM’s aim at the time and I also think it is reasonable for Mr M to expect a payment to be made within this timeframe – when this was the information he’d originally been given.

So that is why I think an award for compensation was needed alongside the fact that when Mr M made requests for payment he was not informed of the new timescales in place. I appreciate this caused Mr M frustration…

https://www.financial-ombudsman.org.uk/decision/DRN-5337114.pdf

UncleTomCobley

Melvinsmum58 said:

UncleTomCobley said:

I requested one on 17 October and after a couple of phone calls and a some emails...the drawdown is still not done.

It's not the account's first drawdown either, I did one at the end of September and it was completed mid October.

I am somewhat unimpressed.

 

Wow, that was at least 2 weeks before mine, so I will not hold my breath. Yes I know they will have been inundated with applications, but what is worrying me is that they refuse to give updated timescales…..they did send out an email after the budget asking if I still wanted to continue my application, why could they not add a sentence to that email stating that the delay in processing is now 30+ days, or however many it is.

Speaking to a pension lady this morning, she said that if I applied now, I would still get a confirmation stating it is 20 working days, when it’s likely looking like 30-40 at the earliest. 

Please could you let me know when your drawdown is completed @UncleTomCobley? The emails and phone calls that you had - was it you chasing them up, or was it them processing your application and querying things with you?

I am seriously unimpressed, HL customer service has really gone downhill. I have sent in a Complaint email this morning, but they haven’t even acknowledged receipt of that, so I guess even that won’t be looked at in the near future.

 

I always had to chase - twice by phone - at fortnightly intervals and then by secure message last week via the HL site. For completeness, I never recieved an acknowledgement (unlike the first time) nor any budget "still want to go ahead?" type email.

 

The secure message I sent did outline HL's inactivity to date, its missing of the 20 days timescales and the affect the delay was having. I did include the "...please treat this matter as a complaint..." phrase. 

This did receive an acknowledgement that my complaint will be looked at - though I'm still (seemingly separately) having to chase to get the withdrawal.

PS Thanks for that link to the ombudsman letter.

Melvinsmum58

@UncleTomCobley

I have sent 2 messages and then had a call today, all telling me they cannot give me an updated timescale, which totally contravenes that paragraph from the ombudsman. 

I did then send an official complaint to the complaints email this morning, I haven’t had an acknowledgment of receipt yet, but will chase up the complaints dept midweek if no acknowledgement.

If they try and close my complaint before the drawdown is finalised, I will refuse the closure and will probably quote the ombudsman’s words about the timescales being adhered to.

LHW99

Melvinsmum58 said:

Albermarle said:

One of their competitors ( Fidelity) quotes 8 working days, if you have enough cash in the account to pay the TFLS you request. An extra 5 working days if not.
My two requests earlier this year took 8 and 7 working days respectively.
However due to the 'budget rush' they sent out a note saying any requests for withdrawals before budget day ( 26th Nov) had to be in by the 5th.

I do not know if 8 working days is quick or slow for a retail SIPP provider, but at least they stuck to what they said.

I also have SIPP money with Interactive Investor, so I will be asking them what their timescales are, and if quicker, just do it via them. And then likely move all remaining HL SIPP funds to II. I wouldn’t mind but HL charge a lot more than others, for (currently) a worse service. The fact that they won’t give any update on timescales, still sticking to 20 working days, is very annoying.

Not sure what II's current timescales will be, but my OH requested his TFLS on 15th October, and it was paid on 21st. A previous UFPLS in 2024 was carried out on a similar timescale.

DavidT67

@Melvinsmum58 Providing updated timescales probably takes more effort and analysis than just keeping their head down and focusing on processing applications.  

I recall last year HL pensions telephone support line couldn't give guidance on likely completion, but did know what day's applications had been completed. i.e. most of those who applied before X date had been processed.

In my case, application was on 21 Oct 2024, chased 21 Nov, compensated 26 Nov, finalised 03 Dec, so six weeks total.  

I've now shifted to less frequent, but larger drawings, and avoiding budget season seems wise!

Melvinsmum58

@DavidT67 Thank you for your response, yes I have gone to less frequent drawings, in hindsight I should have started this one in September.

My last one in July 24 also overran, but when I chased it they did say “we have processed applications up to X date, yours was submitted 5 days later.” So I knew mine wouldn’t be long, I think it was completed a couple of days later. So similar to the feedback you got.

Unfortunately they are not even giving that information out now, they are just saying sorry, we are running over the 20 days. I would be happy knowing where they were up to in relation to mine, but I can't get that information. I don’t think the ombudsman would be too pleased with that, looking at the link I shared.

Hopefully mine will be done before Christmas, I have now submitted a formal complaint but haven’t yet had a confirmation that it has been received.

SouthCoastBoy

I'm an h&l customer, and will be moving to drawdown in the next year or two so I'm finding this thread interesting as I'm in two minds as to whether I stay with h&l or move to a cheaper platform so thks for posting

Melvinsmum58

@SouthCoastBoy My family have been HL Clients for 30 odd years, we have always sucked up the higher charges because of the great website and generally fantastic service.

However, my young adult kids started moving some ISA funds to Interactive Investor last year and my husband and I have followed suit. Their monthly charges are much much lower although I think they do charge when selling funds. I haven’t yet tested withdrawing money from my SIPP with them.

I am extremely disappointed with HL’s attitude to the delay in my current drawdown application.

Yes they are probably inundated due to the Budget, but it’s their complete refusal to give any kind of update (even just saying, “we are currently processing applications from X date” - which they have stated previously to myself and DavidT67 - would help enormously) that is making me think twice about my investments and SIPP going forward. 

Sadly, they are certainly not providing the high level of service that we pay for and have associated with HL over the last 3 decades. Maybe it’s a blip, or maybe its their change of ownership, only time will tell.

UncleTomCobley

Giddiness abounds in the Cobley household this morning as the long awaited HL SIPP => TFLS & drawdown completes. 

Just another two to go and that's it - and no more double account fees to boot.

Melvinsmum58

@UncleTomCobley

Ooh, that’s good - I also got an email late yesterday saying that mine has completed - 4+ hrs after an email confirming my official complaint had been received. Coincidence, or not, who knows. It will be interesting to see what the complaint resolution is.

I have checked and the funds have gone into drawdown so I’m now eagerly awaiting the TFLS landing in my bank account, hopefully today or tomorrow?

This will likely be the last transfer into drawdown before starting to take my DB pensions, so will then decide what to do with the remainder of my SIPP. Likely to move elsewhere if only for lower fees. Higher fees are ok if the service matches them.

Don't get too giddy!