How to deal with an ISA transfer rejection

isatrouble

Hi All,

I wonder if someone has experience with a transfer rejection and how best to escalate.

I raised a transfer request to my new ISA provider on 10th April asking for a full transfer of my previous tax years from my old provider and nothing for this year as I do not have a subscription with the old provider.

Now my new provider delayed the transfer by 2 month i.e. sent the request on 6th July to the old provider for which I complaint and I was promised their honour my request as if it was handled in the 2 weeks after raising it. The requested in July was rejected by the old provider saying the form is not asking for a full transfer of this year.
My new provider again delayed the communication with me and only told me on 10th August why it was exactly declined and they cannot compel the old provider to send the money.

To get the rates from April my new provider asks me to open a new ISA with them , fill in a new form with in my view a wrong statement of transferring also this tax year ISA in full from the old provider which I don't have.

I have now raised a complaint with my old provider the new one and the ombudsman.

What does the ISA regulation say about the obligation of the old and new provider as I have no choice then to go via them ? Is there anything else I can do ?

ZunoWobble

That sounds incredibly frustrating, especially with the delays from both providers. I think you’ve done the right thing by raising complaints and keeping a record of everything. Hopefully they can resolve the transfer without asking you to make a declaration that isn’t accurate.

eskbanker

I'm not really following exactly where your current year money (if any) actually is, but does the old provider support partial transfers out (not all do)?

masonic

The ISA rules are clear on the obligations on old and new providers

• The old provider must permit you to transfer your ISA whenever you want, but they only have to accept instructions for the ISA to be transferred in full (i.e. any current and prior year subscriptions that are found at the point of transfer, with the original account being closed)
• The new provider is not obliged to accept ISA transfers

The Financial Ombudsman Service requires that you give the providers up to 8 weeks to deliver a final response to your complaint before you can use their service.

If you are dissatisfied with your new provider, then you could abandon them and choose a different provider to transfer into. You are not locked into that particular provider or ISA. An alternative provider may have a transfer form that makes more sense to you.

isatrouble

https://forums.moneysavingexpert.com/discussion/comment/82113216#Comment_82113216

My current year money is at my new provider to which I want to add the previous years. They old provider says only full transfer are possible. Which in my view I do ask for i.e. full transfer of previous years as i have no current subscription with them.

isatrouble

https://forums.moneysavingexpert.com/discussion/comment/82113225#Comment_82113225

And here is my question " in full (i.e. any current and prior year subscriptions that are found at the point of transfer, with the original account being closed)" . You say any current and prior year subscription. As I don't have a current subscription with the old provider I have not selected to transfer a current subscription. Can that be misinterpreted ?

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82113419#Comment_82113419

If you're basically wanting to transfer the entire contents of old to new then that's a full transfer, not a partial one, so it would have been better to simply nominate a full transfer, to avoid any confusion?

isatrouble

Regarding "If you are dissatisfied with your new provider, then you could abandon them and choose a different provider to transfer into. You are not locked into that particular provider or ISA.

The new provider has the best rate which which adds ~ £400.

An alternative provider may have a transfer form that makes more sense to you."

Are you indicating the form of the new provider is clear, but I misunderstood the question for this years subscription transfer ? i.e. I had to select it despite not having a subscription with the old provider ?

isatrouble

https://forums.moneysavingexpert.com/discussion/comment/82113432#Comment_82113432

The form had two questions. Do I want to transfer this years subscription and do you want to transfer the previous years in full. I said no to the first ( as I don't have a subscription to transfer) , yes to the second.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82113438#Comment_82113438

Sounds unusual not to have other options - who are you transferring to (and from)?

masonic

https://forums.moneysavingexpert.com/discussion/comment/82113430#Comment_82113430

https://forums.moneysavingexpert.com/discussion/comment/82113435#Comment_82113435

If the old provider requires the full ISA to be transferred, then you should authorise them to transfer current year subscriptions. You presumably have the option to subscribe to the old provider's ISA at any time prior to closure, so they will need authorisation to include any subscriptions you make before the account is closed. People do weird things sometimes and some may attempt to get around the full transfer requirement by adding money during the transfer process.

I think the new provider's form is non-standard based on the way you've described it. Typically the first question is "do you want to transfer the whole ISA (or part of it)?" at which point no further information is necessary if you opt for a full transfer. Sometimes the form will ask "does the ISA contain current year subscriptions?" but this is not needed as the old provider will provide this information when they process the transfer.

In the past I have seen forms that ask if you want to include current year subscriptions in the transfer, but only after you say "Yes" to having current year subscriptions, and in the context of a partial transfer.

In reality, the information the old provider sends to the new provider about how much of the ISA is current year subscriptions overrides anything the customer says on the form.