Lost out on cash ISA allowance for 07/08 due to bank error.

Graz279

I normally pay regularly into my cash ISA throughout the year such that I would hit the limit on the March payment. Encourages me to save regularly.

This time I'd cancelled the regular payments a bit early as I wasn't sure if I'd have the money to spare, just bought a house!

At the end of March I'd decided that I had enough left over to top up my ISA to the limit for 07/08 so I requested a direct debit transfer from my current account into the ISA. Kept checking my ISA details and the payment went through on 4/4, phew just in time.

Got my current account statement yesterday to see that they'd paid the direct debit then withdrew back same day. Strange I thought so off I went to check the ISA, now I have the money briefly appearing in the ISA on 4/4 before being reclaimed back by the bank same day. :mad:

So I've lost out on that bit of cash ISA investment for 07/08. Need to find out why the DD was rejected and have a strop at whoever caused it as it's going to lose me tax free interest. Is it worth trying to get some sort of compensation?

Assuming it's the bank (Barclays) it's about time I transferred my current account from them to someone else anyway but I can use it as a threat that I can definitely carry through

Just a bit !!!!ed off really that I now haven't got the full amount invested in the cash ISA for 07/08.

dunstonh

It seems logical why the direct debit bounced. You said you cancelled it.

Graz279

dunstonh wrote: »

It seems logical why the direct debit bounced. You said you cancelled it.

I didn't cancel the direct debit between the ISA account and my current account just the regular payment. This particular ISA provider allows you to link a current account to the ISA account using a direct debit, you can then set up a regular deposit or request a one off payment all using the same DD. You can amend this stuff at any time and it's never caused me any problems before.

What is annoying is why couldn't whoever bounced the DD ring me and tell me what was happening. I'm sure we could have sorted it there and then rather than me missing out on my full ISA allowance for the last tax year.

dunstonh

When you cancelled the regular payment, did you tell the bank or the ISA provider?

The D/D system is heavily automated. The bank almost certainly has been notified of a cancellation. That can either come from you or the ISA provider. They wouldn't cancel it otherwise.

If the reference number for collecting the payments on ad hoc and regular was the same and the bank were notified of cancellation then it would cancel both as its just one instruction.

What is annoying is why couldn't whoever bounced the DD ring me and tell me what was happening.

Thats not very realistic though is it. They would have to employ loads of people to make those phone calls and its an unnecessary cost.