Transfer Cash ISAs Discussion Area

10_66

MarkyMarkD wrote: »

...Any delay between Natwest issuing the cheque, and A&L clearing it, is down to you unless you can prove that A&L actually received it and lost it internally. Royal Mail delays/losses cannot fairly be attributed to either Natwest or A&L...

Except, in my experience on at least two occasions, the receiving ISA providers have "lost" the cheques, only to miraculously find them when a complaint has been lodged.

easilyconfused_2

MarkyMarkD wrote: »

Any delay between Natwest issuing the cheque, and A&L clearing it, is down to you .

Down to me? You mean my fault/responsibility? What can I do about it?

The problem appears to be the banks' antiquated method of sending cheques through the post. I have yet to receive an adequate explanation as to why they continue with this practice.

Perhaps I should have learnt from a previous experience with A&L: in late 2008 I transferred part of an ISA from A&L to Halifax. Instead A&L sent a a cheque for the whole amount, so the cheque was returned to me(!) stamped PAYMENT STOPPED. A&L eventually sent the Halifax a cheque for the correct amount, but the whole thing dragged on for weeks.

In the present case, assuming Nat West can tell me when A&L have cashed the cheque, can I take it that interest will be backdated to then once the funds are in the new account?

Does this also mean that there is always a period of time - while the cheque is "in transit" - when no interest in being earned at either end?

What a wonderful system

MarkyMarkD

10_66's experience is unfortunate. But in general, you can't prove who is to blame unless you have evidence either way - e.g. the letter is posted by bank A to bank B 6 weeks after they claim to have closed your account, and bank B gives you a copy of the offending letter/cheque.

It is a fact that things DO get lost in the post and (more commonly) that the sending bank will simply pretend it wasn't their fault when actually they haven't sent the funds.

Regarding easilyconfused's comments, the only reliable way of sending money AND the necessary transfer information is by post/cheque. You cannot pass the information electronically along with a BACS payment because BACS doesn't provide the facility to send more than a few characters. HMRC pretend that it's possible to do electronically, but haven't bothered to implement a transfer system which would actually facilitate it. It needs an agreed electronic data format between all providers. HMRC are the obvious ones to implement this but don't appear to care.

If NatWest tell you when the cheque cleared, of course A&L must pay interest from that date.

And yes, there's always a period of time when the cheque is in transit when no interest is earned. Surely you take account of that in deciding whether to move your funds or not? Same applies for most transfers between savings accounts ... why should ISAs be any different?

murphydavid

10_66 wrote: »

Santander (who I wouldn't touch with a barge pole) and Nationwide have failed in straightforward transfers. Santander particularly difficult to sort out, over a lengthy period.

Had a similar experiance with Santander in their Abby Guise.

murphydavid

easilyconfused wrote: »

I posted last week about the delay with my wife's cash ISA transfer from Nat West to Alliance& Leicester. She is now very concerned because Nat West have informed her that the account was closed on 17 February, but the money has still not reached her A&L account. So what's happened to the money? Does "closed" mean that Nat West have posted off a cheque to A&L and closed the account, or that they have closed the account because the cheque has been drawn by A&L? What happens if the cheque has been lost?
A&L's local (Woking office) whre the account was opened appear loath to return calls.
As £22k is involved, we are both understandably worried.

In my opinion a cheque is an instruction to proceed with a money transfer as is a BACS request. So until the cheque is cleared the money remains with the issuing bank. If the cheque is lost the money is not lost just the instruction. If you think a reasonable period has elapsed (I think 10 days is reasonable) I would put in writing to the issuing bank that there was a loss or delay and request they find and pay interest on your money. From there on (if no result) I would get a copy of their complaints procedure and follow it carefully (all in writing and allowing a reasonable time for each step). You will find that the last procedure is to contact the ombudsman. I would mention in all correspondence how long you expect them to take to reply and when you will be contacting them again should they fail to do so. And after the first letter make it clear that you are starting a complaint and mention that you will be contacting the ombudsman in the event of an unsatisfactory outcome. Always be business like and just stick with it.

easilyconfused_2

MarkyMarkD wrote: »

And yes, there's always a period of time when the cheque is in transit when no interest is earned. Surely you take account of that in deciding whether to move your funds or not? Same applies for most transfers between savings accounts ... why should ISAs be any different?

Thanks for your reply MarkyMarkD - I see what you mean now. However, one has little option but to move funds if the rate drops to fractions of a percent!

I hope HMRC come up with a solution as you suggest.

I recently managed to get an ISA transferred from Halifax to First Direct
in less than 10 days (is this because, as a previous poster suggested, Halifax use an electronic method?)

Anyway, it can be done quicker.

easilyconfused_2

murphydavid wrote: »

In my opinion a cheque is an instruction to proceed with a money transfer as is a BACS request. So until the cheque is cleared the money remains with the issuing bank. If the cheque is lost the money is not lost just the instruction. If you think a reasonable period has elapsed (I think 10 days is reasonable) I would put in writing to the issuing bank that there was a loss or delay and request they find and pay interest on your money. From there on (if no result) I would get a copy of their complaints procedure and follow it carefully (all in writing and allowing a reasonable time for each step). You will find that the last procedure is to contact the ombudsman. I would mention in all correspondence how long you expect them to take to reply and when you will be contacting them again should they fail to do so. And after the first letter make it clear that you are starting a complaint and mention that you will be contacting the ombudsman in the event of an unsatisfactory outcome. Always be business like and just stick with it.

I will certainly follow your advice if I have to, murphydavid.
I assume that HMRC's 30-day guideline for transfers means 30 working days, so there are still a couple of days to go before I can start the ball rolling.

10_66

easilyconfused wrote: »

I will certainly follow your advice if I have to, murphydavid.
I assume that HMRC's 30-day guideline for transfers means 30 working days, so there are still a couple of days to go before I can start the ball rolling.

If you do decide to complain to the FOS (THIS FOS link explains how to complain), you have to allow the company to which you're making the complaint 8 weeks following formal complaint (usually in writing) to try to resolve your complaint before the FOS would investigate.

easilyconfused_2

10_66 wrote: »

If you do decide to complain to the FOS (THIS FOS link explains how to complain), you have to allow the company to which you're making the complaint 8 weeks following formal complaint (usually in writing) to try to resolve your complaint before the FOS would investigate.

Thanks for the link 10_66!

sans-pareil

Out of interest does anyone know if Alliance & Leicester (Santander) charge any ISA exit fee on easy access cash ISAs when transfering? I have not come across a provider that does so far so im guessing its no?

Oh and also with First Direct?

Cheers for any info you can provide!