HSBC cashback offer

ccluedo

https://forums.moneysavingexpert.com/discussion/comment/81998696#Comment_81998696

Yeah, today's email says

" You'll earn interest throughout the transfer period, paid either by your current provider or HSBC"

Doesn't sound like both as someone had previously suggested it might be on another post.

I had hoped that might help compensate for the much lower interest rate whilst matured funds sit in EA ISAs etc at non comparable rates.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81998657#Comment_81998657

Which specific regulations are you thinking of here? As posted previously, there's best practice guidance but I don't recall seeing anything in the regulations themselves.

poblomov

I got today's email. They are gradually getting more specific.

The text message said "If you asked us to transfer an ISA…"

The email now acknowledges that a transfer request was made.

Maybe the next communication will mention which bank/building society the transfer is coming from…

EastSussex45

I'm new to this Forum.

Although I'm sorry to hear about all your problems with the HSBC fixed rate cash ISA, I'm pleased in a way because they show that I've not been alone in experiencing the same problems.

I started the process way back in early April, involving a transfer into HSBC from outside bodies. It all went quite well to start with when the transfer requests to the outside bodied were accepted by them. But after that there was a total inaction by HSBC for some 3 weeks as they did call for the funds. I got onto to them about the delays several times by phone and on each occasion was promised that all was in hand and I shouldn't worry. However, it wasn't until late in April that they actually called for the funds. Since then the funds have been sitting in a "suspense account",

I've phoned them several times about this matter and all I get is promises that the money will soon be transfered from the "suspense account" into my new cash ISA, but in fact nothing has happened. I've been promised a return phone call from someone in their complaints team but again without any such luck. They promise things but don't deliver.

There is no doubt that I've been given the run-around over all this, and have made little progress. All I have learned from them is that the money is not lost, but they say they have idea when the funds will be placed in my ISA account, as the backlog of similar cases is so great.

I've never in the past ever received such a completely lousy service from any bank or buiding society. It's utterly appalliing.

ccluedo

https://forums.moneysavingexpert.com/discussion/comment/81998782#Comment_81998782

Welcome to the Forum. 😀

HSBC might have done you a favour in a roundabout way as you will pick up some real pearls of wisdom/gems and plenty of support throughout all of the forum boards.

friolento

https://forums.moneysavingexpert.com/discussion/comment/81998724#Comment_81998724

there's the law https://www.legislation.gov.uk/uksi/1998/1870/regulation/21A

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81998868#Comment_81998868

But where does that specifically address interest backdating?

EastSussex45

https://forums.moneysavingexpert.com/discussion/comment/81998893#Comment_81998893

If you look at Regulation 21A, the section at 21A(2c states:

"(c) the transferee shall ensure that the subscriptions specified in the transfer instructions are
transferred to a cash account [F669held by the account investor] with the transferee within
3 business days beginning on the day that the transferee receives the subscriptions and the
notice referred to in sub-paragraph (b)(ii)."

It seems from this pretty clear that the transferee (in this case HSBC) has at most 3 business days after receiving the funds from the transferor to deposit those funds into the account holder's ISA account at HSBC. It cannot keep those funds in a "suspense account" any longer than 3 business days. They are in breach of the regulations if they fail to do this, as is the case with me.

To my reckoning, this implies that interest on the should be earned at least from the time when HSBC received the funds and no later than 3 business days later.

HSBC have informed me that interest will accrue from the date they received the funds. If the funds are not deposited into the customer's ISA account until some time later, then at the end of the 1 year term, there will be two interest payments in principle: (i) one from the date the funds were actually placed in the account, and (ii) the other to cover any difference between the date they received the funds and the date the funds were placed in the account. In practice, whether there will actually be two separate amounts shown or whether they will be rolled into a single payment is unclear.

HSBC have failed miserably at various stages in this entire matter. I've now lost confidence in them completely, especially after their repeated failure to do what they have promised to do in respect of sorting things out "soon" anfd failing to getting back to me with updated information on where things currently stand.

friolento

https://forums.moneysavingexpert.com/discussion/comment/81998893#Comment_81998893

You are right, it doesn't directly. It just tells the ISA Manager that the money has to be in the customer's account by a given date. If they fail to meet that date, they are already in trouble. They can't then punish the customer further by not paying interest.

boco803

https://forums.moneysavingexpert.com/discussion/comment/81998373#Comment_81998373

Thanks - where were funds transferred in from?