Another ISA transfer another bank makes a mistake

masonic

It sounds like they failed to process the ISA transfer correctly and then ran out of time. Or the ISA never accepted transfers. You should clarify which it was, but it won't affect the resolution.

The resolution will be to transfer both existing ISAs into a new one accepting transfers. It is up to you whether you stick with this provider. Any early access penalty should be waived. Some compensation for distress and inconvenience should also be paid.

The FOS can help with this if the provider hasn't resolved within 8 weeks of your complaint, but you'll be waiting several months for the FOS process to conclude, so worth resolving with the provider if possible.

Staff being poorly trained about ISAs is a running theme of this board, so no surprises there.

toymotor

https://forums.moneysavingexpert.com/discussion/comment/82008472#Comment_82008472

The isa wasnt done correctly in branch. Branch staff not trained enough, giving out wrong information eventually they ran out of excuses and time. I'll stick with them this year but now i'll have 2 isa to transfer across next year and if they are this bad with one God only knows how they'll be with 2 to transfer.

tetrarch

You are wanting to go to an Ombudsman to be made whole. The solution you have been offered by your provider makes you financially whole, but gives you the inconvenience of two different accounts

Any "reasonable" test would deem that you have not been affected negatively financially.

In just over 9 months time you can consolidate your iSA's into a single account at another provider.

Regards

Tet

toymotor

https://forums.moneysavingexpert.com/discussion/comment/82009259#Comment_82009259

Then i can consolidate? If you could give me link to where that information is I would be grateful. I can't find rules on consolidating isa's. Thanks for you input most helpful.

masonic

I don't know what the reference to waiting 9 months is about, but you have the right to consolidate at any time. The rules around transfers can be found here: https://www.gov.uk/guidance/transfer-an-isa-if-youre-an-isa-manager

toymotor

Thank you very much, i'll give a read.

fuzzzzy

https://forums.moneysavingexpert.com/discussion/comment/82009394#Comment_82009394

But if the first ISA opened was a fixed term ISA, which it sounds like it was because they would not allow this year's funds to be added, presumably due to being outside the funding window, then there is no way to consolidate until the end of the fixed term (or later when the second ISA, containing this year's funds, fixed term ends if that was also a fixed term).

It sounds like the OP was compensated for loss of interest on this year's funds as the rate on the second ISA was less than the first. They maybe should have asked for extra compensation for being inconvenienced by the provider's mistake. The ombudsman is not going to get rid of this inconvenience by consolidating accounts, but it is possible they could get slightly more compensation. Whether this is worth the further hassle or not is up to the OP. If I were the OP I would just forget about it now, let the ISAs run their terms, mature or transfer into easy access and then consolidate.

tetrarch

https://forums.moneysavingexpert.com/discussion/comment/82009394#Comment_82009394

I was referring to the start of the 27/28 tax year when all the offers emerge

Regards

Tet

masonic

https://forums.moneysavingexpert.com/discussion/comment/82009530#Comment_82009530

"But if the first ISA opened was a fixed term ISA, which it sounds like it was because they would not allow this year's funds to be added, presumably due to being outside the funding window, then there is no way to consolidate until the end of the fixed term (or later when the second ISA, containing this year's funds, fixed term ends if that was also a fixed term)."

There is an absolute legal right to consolidate at any time that cannot be overruled by an ISA provider. That is why there cannot exist a fixed term ISA that does not permit access. The provider can refuse to accept transfers into their ISA but they cannot refuse to transfer their ISA out to another provider. They may try to impose a penalty for transferring out, but in the situation they've admitted fault when opening the ISA, this would be unsuccessful if challenged.

https://forums.moneysavingexpert.com/discussion/comment/82009560#Comment_82009560

Fair enough, but there are great offerings available right now. Some even better than was available during "ISA season 26/27". I see no harm in acting now rather than suffering with an unwanted situation for 9 months.

fuzzzzy

https://forums.moneysavingexpert.com/discussion/comment/82009588#Comment_82009588

Yeah, I was aware that you can always withdraw from an ISA but assumed that no-one would withdraw from a fixed term due to the penalties, but thinking about it, because of the error made by the provider, the OP could request that all penalties be waived if they choose to transfer and consolidate into an ISA with another provider. With interest rates rising now this could benefit the OP so definitely an option they could consider.

Edit: sorry I totally missed masonic's earlier post at the top of page which pretty much said all this.