Darlington BS massively overpays annual interest

francoghezzi

Emily_Joy said:

Caught in this too. I need funds to pay extra pension contributions to HMRC.  :'( Fingers crossed it will be resolved shortly. 

If you need the money phone them and you will be able to withdraw the capital leaving the amount of interests that is still not correct after 9 days. I took all the money yesterday and they are in my nominated account. Waiting to withdraw the exact amount of interests when it will be possible because I wanna close the account. They offered even money because I made a formal complaint but I refused. 

Rudyson

Emily_Joy said:

Caught in this too. I need funds to pay extra pension contributions to HMRC.  :'( Fingers crossed it will be resolved shortly. 

Have you tried phoning them to ask if you can remove some (but not all) of the money. They may do that manually for you.

Section62

Emily_Joy said:

Caught in this too. I need funds to pay extra pension contributions to HMRC.  :'( Fingers crossed it will be resolved shortly. 

If not having access to money is likely to cause you financial issues then contact Darlington and see what they can do, rather than waiting and hoping.  They may be able to make a special one-off arrangement for you.

TheBanker

dcs34 said:

TheBanker said:

clairec666 said:

happybagger said:

clairec666 said:

Rather than just correcting the interest payments, Darlington will have to investigate why the miscalculation happened, and prevent it happening again on other accounts.

I get that, but the second and third of these should follow the first, and can happen later. Bringing accounts back to the correct position should be the priority.

I am surprised they haven't been able to make the necessary amendment yet. One forumite seemed to have worked out what the extra amount came from on the day it happened.

I too am surprised they haven't been able to sort it already, but would rather it be solved properly than a quick fix.

It is possible their IT Team are having to write new code to remove the erroneous credits and then apply new ones correcctly without impacting any of the above. It's not a simple as just calculating what the correct balance should be and removing the excess. 

And perhaps someone is trying to work out whether it's financially beneficial to apply these fixes versus just letting people have their interest a year early...

The problem with that approach is that the interest will be reported to HMRC as being earned in the 2025/6 ta year, when part of it belongs to 2026/7. For most people, this won't make much difference, but for some it will. For example, if you are a basic rate tax payer and have carefully planned things to maximise your £1,000 PSA across the two years, you would be disadvantaged by paying more tax this year, and potentially wasting part of next year's allowance.

This is why it takes time. They're probably working through a range of options, each of which will present its own challenges.