Barclays didn't transfer my cash in time

lisar_3

Hi, not sure if anyone can help but, Barclays were asked to transfer cash from my current account into my ISA account at the begining of April but it simply did not happen. I have now received a letter stating that as it was their mistake they have placed £220 into my account, the problem being the delays with opening of the ISA accounts.

Now this is my query, as I was not opening a new ISA account (acount already in existance for 18 months) and as I now appear to have missed paying in during last year, I am now being charged tax on the money paid in since April 08. Does anyone know if I can kick some butt over this.

Lokolo

The £220 was placed in a non ISA account I assume?

You can try and kick up a fuss but to be quite honest, I'd be happy with £220!

brownbabygirl

I agree with Lokolo

Rob_07

You shouldn't be happy with just the £220 because you have lost that tax free allowance for the rest of your life - it has gone and there is no way that you can get it back. The £220 just represents the interest for one year and does not take into account the compounding of this interest in future years, therefore go back to barclays and say that you want at least double that amount for the lost tax free interest in future years.

If you haven't submitted a formal complaint do so now and stress that as a result of barclays incompetence you have lost your tax free allowance for 07/08 and therefore need more than £220 to compensate you for the lost interest for the rest of your life

Hope this helps
Rob

lisar_3

Hi all and thanks for the comments. I agree with Rob, as while it is very nice to be given £220 I will be losing part of that in the tax I am now paying and also, as you rightly said, it is a cummulative fund and so does not compensate for future loss. In reply to Al Mac, I went into the branch and asked for the transfer at the start of April, the cashier said it would be done before the 5th, although the date is irrelevent, as ISA's can be funded at any time in the 12 month period, more to point when I had the money to put in it . Oh btw the compensation was because of a formal complaint...well here goes, back to Barclays. Do you want me to let you know how I go on?

Rob_07

lisar wrote: »

Hi all and thanks for the comments. I agree with Rob, as while it is very nice to be given £220 I will be losing part of that in the tax I am now paying and also, as you rightly said, it is a cummulative fund and so does not compensate for future loss. In reply to Al Mac, I went into the branch and asked for the transfer at the start of April, the cashier said it would be done before the 5th, although the date is irrelevent, as ISA's can be funded at any time in the 12 month period, more to point when I had the money to put in it . Oh btw the compensation was because of a formal complaint...well here goes, back to Barclays. Do you want me to let you know how I go on?

Yes, let us know how you get on.

Sillychuckie

The £220 is more than enough I think.
They aren't paying you the 'interest' you lost for a year, because you still have the money available to put elsewhere and earn interest on.
What they DO owe you though, is the difference between the GROSS and NET on that interest, rolled up for the rest of your life (or until ISA's are guaranteed).
For a basic rate tax payer, at 6.25% say, the difference in year 1 is £37.50.

The amount they have paid does far more than just cover you for 1 year, and whilst you might lose out in the long run (over 10 years say...), it is as fair a pay out as you can expect and is not as bad as you might have previously thought.
SC.