Barclays failed to open tax haven ISA

simon_Sam

Hi,

Not sure if this is the right place to post this but here goes. If it is not if someone can point me to the right place thanks.

Just had a letter from Barclays about our Tax Haven ISA applications.

Basically they have said they did not managed to open the accounts in time and now can’t open the accounts for the 07/08 tax years. My wife and I had done 2 applications for £3000 each and now I’m being told we have lost my allowance for the 07/08 tax year.

They have offered compensation for 1 ISA they have seemly forgot that the complaint related to both mine and my wife’s ISA application. The amount is £220 which would agree covers the interest lost for a year on 1 ISA.

My questions are

1. Is there anything that can be done to get back the 07/08 allowance. I’ve been told you can’t as it is a government rule and we have now missed the boat.
2. The compensation is good for 1 year but what about all the future years we will loose out on and the fact that we are now behind in putting our tax free savings away and will always be behind as it was our plan to do £6000 for 07/08 then £6800 08/09 and then £6800 09/10 obviously these are joint figures. And this does not take into account that we could have new funds to place in ISA so basically for life we will always be behind. Are there any rules formulas that can be used to work appropriate compensation for this loss? I realize it is hard to quantify but it is non the less a loss.
3. Is there any point taking this up with the Financial Ombudsman? I’m inclined to think that Barclays will give me a further £220 for my wife’s ISA just not sure if this is a fair amount?

If anyone can help I would be grateful

Thanks

crazyaboutsaving

Wow, I can't believe Barclay's did something like that! That's horrible! I don't know much about this stuff, but I would think there must be some kind of legal implications. Have you tried going to the citizens advice bureau? They might have some good advice. You're right - it doesn't just set you back a year, it's compounded over the years. I would be expecting the compounded loss of interest on the ISAs, not just one years interest.

jonesMUFCforever

Never mind CAB invoke the complaints procedure.
Write setting out what you did, when you did it and provided you did not fail to provide Barclays with any requested information yes I would go to the FSO but only after you have given Barclays a final chance to put things right.

I'm pretty sure that there must be a contingency measure in place that Barclays and HMRC can sort out this mess for you - otherwise I would be asking Barclays to make up the interest in full on both accounts for the whole time that they have your money.

Hungerdunger

Have a look at my post (#3) in this thread. The Barclays rep is unequivocal that you will not lose out. I don't know whether you can use this as ammunition.