LloydsTSB Fixed rate Isa 6.5%

sloughflint

DavidAC wrote: »

I would be grateful if someone could post some links to regulations, T&C etc that I could use.

David, I thought I had in #875.
You'll get a rough idea ( not formal letter-speak) of how I went about it with this

Backdate of interest.....
LTSB answer machine message on 0800 015 0060 states backdate of interest to date of cheque,
but......
branch staff state otherwise
closing and opening letters give different dates, same values and no mention of interest bla bla bla

Commencement of 12 months....
branch staff state from date of application
however......
(A1.2) of LTSB FRISA T&C says bla bla bla ( note the key word DEPOSIT!!!!!)
and HMRC 5.3 states bla bla bla

But an ISA isn't opened until it's funded according to HMRC - see HMRC ISA Managers Guidance Notes 2008 - specifically:
5.3 An ISA begins from the later of
• the date on which the ISA manager accepts the application form, and
• the date on which the subscription is made

Parts of the LTSB written response are here
Does that help at all?

sloughflint

Call me cynical. Despite the reply I've got, my crystal ball says that we probably will get the interest backdated quite easily but it'll be the 12 month period end that will be the sticking point.

In my case 27/03/08 is not going to be acceptable but 05/04/08 will be ( should be really be 04/04/08 ).
How can they possibly argue with A1.2 and HMRC 5.3 and now a letter to me confirming the 12 months is the current tax year ( even better!!!!)?

I think we and LTSB will be busy 12 months from now.

sloughflint

And at the end of the day if they still insist that 12 months starts from application date and therefore referring to their own T&Cs A1.2, application/signature would have to mean deposit.

As a consequence, LTSB should then be paying interest from application date which is ridiculous because interest would then be being paid at old Provider end and LTSB end until old provider closed the account.

They just don't have a leg to stand on frankly so I'm not too worried. Just annoyed at the hassle.

derrick

sloughflint wrote: »

Quote:
But an ISA isn't opened until it's funded according to HMRC - see HMRC ISA Managers Guidance Notes 2008 - specifically:
5.3 An ISA begins from the later of
• the date on which the ISA manager accepts the application form, and
• the date on which the subscription is made




That link also confirms that electronic transfers are permissible; -

6.9 by telegraphic transfer – if the investor instructs the manager to transfer funds,
the date on which the instruction is received and accepted by the ISA manager,
provided that the cash transfer takes place in due course. If the investor
transfers the funds directly, the date on which the subscribed funds are
received by the ISA manager.

DavidAC

Thank you sloughflint. I have just phoned the number you gave and it did confirm what you said, intrest paid from the date on the cheque from the previous ISA provider. That is very reassuring as long as they do what they say. I was told different when I got through to someone at my local branch. I hope it has the cheque date on the statement when I get it. If not we might need to record the message in case they argue about it when the interest is paid in a years time.

sloughflint

derrick wrote: »

That link also confirms that electronic transfers are permissible; -

well spotted and even better:
6.9:
6.9 The date of subscription is
• by cheque – the date on which the cheque is received and accepted by the ISA
manager

so combined with 5.3;
5.3 An ISA begins from the later of
• the date on which the ISA manager accepts the application form, and
• the date on which the subscription is made

LTSB really don't have a leg to stand on if they formally ( as opposed to verbally)suggest start date is date of application.

If we send enough letters to them now, hopefully they'll sort themselves out and we won't be busy next year ( apart from looking for better deals).

Roddydogs: that email they sent you is going to be very useful to you. The rest of us have just been given verbal rubbish. You've got written rubbish.

sloughflint

DavidAC wrote: »

Thank you sloughflint. I have just phoned the number you gave and it did confirm what you said, intrest paid from the date on the cheque from the previous ISA provider. That is very reassuring as long as they do what they say.

I wouldn't be reassured. I would seek formal written confirmation as it is not stated anywhere in the T&Cs.

derrick

I have recorded and transcribed the message received when calling the 0800 0150060, option2, that sloughflint provided above; -

If you are calling about your ISA transfer please be aware that it can take up to 30 days for us to receive your money, if it’s been less than 30 days please contact your current ISA provider to check on the progress of your transfer, we will confirm in writing when the money is paid into your ISA. At Lloyds TSB we are pleased to tell you that you’ll not lose any interest during the ISA transfer process, interest will be paid from the date on the cheque from your current ISA provider, if it’s been more that 30 days since you requested your transfer please hold and an adviser will be able to help you.

unclebear

Completed application forms etc on 13 March in order that isa would be ready to accept 9K plus transfer in from 60 day notice account in May.

Week of confusion followed as other branches, call centre, manager of local branch, could not agree whether 12 month started from date of signing, or date funds would be transferred in (May).

Finally, advised by branch they had cancelled 13 March application and made an appointment for me to come in again on day in May that the 60 days notice from other provider was up. They would then open up 6.5% fixed rate account for me and complete transfer request to other provider, thereby ensuring that I would get maximum duration of 12 months 6.5%.

I note the 6.5% offer is now closed.........where do you think i stand now?

Could I demand 6.5% still (I never cancelled original application, they did!)

What a bunch!

sloughflint

How much do you want this ISA? Comfortable with hassle?Because it will be!
I think I'd be looking for another deal if the rates aren't too far below this one.

unclebear wrote:

made an appointment for me to come in again on day in May that the 60 days notice from other provider was up

Why not 30 days before, two weeks before, one week before?
I can't remember what the transfer form looked like but couldn't they have put a specific date on there like the Icesave one on the 13 March?
Good luck.