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Prof

Isa Transfer Woes.

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Is this just me ?

A couple of years ago, it took my mum about 4 months to get an ISA Transfer completed (I won`t go into that now).

I applied mid May to transfer from A to B.

A closed my online account around 25th May.

I checked with both providers last week on the situation. B had not received the cheque. A told me they had sent the cheque (1st class).

Just got a letter from B, telling me that they have still not had any response from A.

Phoned A, they confirmed the cheque was sent at the end of May, but B have got a backlog.

Phoned B, they told me they didn`t really have a backlog, and that no cheque has arrived, I have to call back in a few days.

I`ll allow 2 days for a 1st class letter to arrive. I`ll allow the recipient a day or two to open the letter. Why has it taken 10 days for the cheque not to arrive ?

I think I know the answer to my own question, and I told A&B exactly my thoughts on the subject. They both tried to give me valid reasons, but I just made their "reasons" sound like excuses. I was told to allow 30 days for the process to complete. I said I would, but given that a cheque had "vanished", I wanted an explanation.

Is anyone else experiencing this sort of thing ?

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And meanwhile the money is in neither account and earning zero interest :angry:

I'm sure I've transferred in virtually every year since these poxy ISA's started, but last year was my worst to date. Bank A said the cheque was sent on a certain date but Bank B claimed it was not received until a date way in advance of the sending date. Obviously one of the banks was taking the p1ss but I was never 100% sure which one.

I bellyached to Bank A and costed the 'out of account' amount I thought I was due because of the excessive delay. Bank A did eventually pay me this amount after I told them I was going to close all my accounts, but it took them almost a month. Not sure if the fact I had my STR fund with them influenced their decision any :lol:

The real issue with ISA transfers seems to be that in the 21st century banks are still mailing cheques to each other. It only takes a cheque to really go missing in the post and you could be left well out of pocket while you play bank ping-pong.

Hope you get this resolved as I've been then and it isn't funny.

Edited by MrFlibble

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Ah, I`m not alone.

This is a scam. We all know that investment banking has come in for a lot of stick recently. The thing about what`s happening here is that this is a blatant rip-off of the retail customer. At a time when rates for savers is so low, it`s just rubbing salt into the wound.

My new provider has assured me that I`ll start earning interest from the day they receive the cheque, but they say they haven`t yet received it. The previous provider told me that it can take 30 days to complete a transfer. My reply to that was "I accept that, but you`re telling me that you sent the cheque over a week ago, and my new provider hasn`t yet got it. Where`s the cheque ?". I also had the excuse that ISA transfers are more complex than normal transfers, as the Inland Revenue are involved. Does that explain where the cheque is ? Does the cheque have to be sent to the IR, then they send it on to the new provider ? I don`t think so.

How long have ISAs been available ?

Can the banks transfer funds electronically ?

Do cheques really get lost in the post ?

Or are the banks a load of thieving, lying ****ers ?

Answers on a postcard please. No, better type you answers here, things get lost in the post.

BTW. I can`t remember the last time I knew of anything that I sent via post going missing, nor anything I was supposed to receive. And It would be quite a big coincidence that my mum`s ISA cheque also seemed to vanish a couple of years ago.

Edited by Prof

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And meanwhile the money is in neither account and earning zero interest :angry:

Is the money really nowhere, or is it still in the hands of the organisation who issued it, ie. my old provider ?

Edited by Prof

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Is the money really nowhere, or is it still in the hands of the organisation who issued it, ie. my old provider ?

Until the cheque is cashed your old provider gets to keep the money and pay you zero interest. The more they delay sending the cheque the better for them.

But off course...

The new provider could have cashed the cheque while still claiming they haven't received it. They hold the money and you see no interest on it. The more they delay the better for them.

The cash is in an account, but not an account you can see it in, instead it is sitting in the banks slush fund account.

Since you have no way of getting a straight answer out of either institute then you are left in the middle wondering if you are simply being gamed or there is a genuine problem. The few quid they fleece of you isn't a big amount, but when you multiply it over many thousands of transactions they are creaming it in.

They are all fookers the lot of them :angry:

Edited by MrFlibble

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The amount I`m losing is noticeable, as I have been a good boy and saved for my future (or for when I`m short of work, like now). Pehaps I deserve to be treated like this, as I haven`t racked up a large debt (if I did have a large debt, I`m sure the bank wouldn`t mind a late payment caused by the cheque being in the post).

This makes me very angry, not just because of the loss of interest, it`s the lying that is taking place. I`m sure I`m being lied to.

And we`re not alone. A quick gander at M.Lewis`s forums reveals many others (some of which are reporting similar problems with my old provider) are having cheques going missing.

For the first time in my life, I think i`m going to contact my local MP. It would be bad enough if there was a genuine issue with the ISA transfer process - ie a real delay caused by real red tape, but this looks like it`s simply a con.

Edited by Prof

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Yeah it's bad and to make matters worse its a closed system where you cannot get involved in the process.

At least with a personal cheque you can write it yourself and deposit it over the counter at a bank, seeing it in your account on the same day and cleared within 3 days, usually resulting in only a single days loss of interest if any.

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I`m seriously considering closing my ISAs and just sticking them into NS&I Index linked certificates, or even normal savings accounts. The slight "edge" I get with the tax fee return on cash ISAs is negated by the cheques that seem to get lost in the post.

I feel like calling my old provider again, but I know I`ll get nowhere, and it`ll just increase my blood pressure. Better to wait a few more days to see if the cheque turns up with the new provider. I have a feeling I`m going to be on the phone to both of them again on Monday.

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I`m seriously considering closing my ISAs and just sticking them into NS&I Index linked certificates, or even normal savings accounts. The slight "edge" I get with the tax fee return on cash ISAs is negated by the cheques that seem to get lost in the post.

I feel like calling my old provider again, but I know I`ll get nowhere, and it`ll just increase my blood pressure. Better to wait a few more days to see if the cheque turns up with the new provider. I have a feeling I`m going to be on the phone to both of them again on Monday.

I am also tempted by this... Can I do some maths and you tell me if I'm right?

If I invest £100 in an ISA at 2.6%, then I get £102.6 at the end of a year...

If I invest £100 in the NS&I savings bond, at 0.8%, and RPI in a year's time is 4%, then I will have £104.8 in a year's time...

This seems to be a no-brainer....(?)

Or do I have no brain....?

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I am also tempted by this... Can I do some maths and you tell me if I'm right?

If I invest £100 in an ISA at 2.6%, then I get £102.6 at the end of a year...

If I invest £100 in the NS&I savings bond, at 0.8%, and RPI in a year's time is 4%, then I will have £104.8 in a year's time...

This seems to be a no-brainer....(?)

Or do I have no brain....?

I'm in the process of moving savings to NS&I index linked, using the kids names as well (allowed). Since BoE are determined to set base rates low and deny the existence of inflation, I thought it prudent. The lower sterling goes and the sooner VAT goes up, the higher RPI will be.

VMR.

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I am also tempted by this... Can I do some maths and you tell me if I'm right?

If I invest £100 in an ISA at 2.6%, then I get £102.6 at the end of a year...

If I invest £100 in the NS&I savings bond, at 0.8%, and RPI in a year's time is 4%, then I will have £104.8 in a year's time...

This seems to be a no-brainer....(?)

Or do I have no brain....?

Seems about right.

The only thing is that with an ISA, you are sure what you will get in interest (if it`s fixed), whereas inflation is a little harder to predict (and can be manipulated, to a certain degree).

There again, you can`t really be sure what you`ll get on an ISA, as you can`t tell how much interest you`ll lose when they "misplace" your funds during a transfer. And you do have to transfer if you want to keep your rate of return at a decent level.

I`m still quite angry that both of my providers are unsure of where the cheque is, yet neither is doing anything about it. If I sent a cheque in the post, or was waiting for one, and it took any longer than 3 or 4 days, I`d assume it was lost and get another issued. These blighters are just telling me to wait a little longer.

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Anyone tried a complaint to Financial Services Ombudsman? Should speed things up, plus after a few months you might get a £100 gratuity for the "inconvenience" so the banks can avoid an adverse finding.

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Progress.

I couldn`t help but give both banks another call. The cheque has been "lost" for 8 days, yet both banks don`t seem too concerned. The sending bank assure me they`ve posted it. The receiving bank assure me it hasn`t arrived. Forgetting the loss of interest (and how that benefits the banks, but not me), it`s very poor service when it`s obvious something has gone wrong, yet neither party seem too bothered - "just wait a few more days".

Anyway, I called the sending bank again, and they are cancelling the cheque today, and posting a replacement, registered delivery. I`ve been told that it should be with the new provider Monday/Tuesday. I should now feel confident that it will actually happen, but I have a funny feeling about this.

Whoever I speak to about this, be it friends/family or the banks themselves, the one thing that is always mentioned is electronic funds transfer. It if beyond belief that this hasn`t been introduced. I hear the excuse from the banks that "it`s something to do with the tax system". If that is true, it`s pathetic this is the case. I know the Inland Revenue have facilities for funds transfer, because they happily accept my PAYE and Tax payments via the interweb. I`m pretty sure the IR don`t actually have to hold the ISA transfer funds, I assume they have to verify the tax status of the holder, and check that the amount being transfered is within the rules. This process is likely to be possible using computers, rather than paperwork, I would expect. I would also expect that if the banks were to transfer ISA funds electronically, it would be possible (if required) to provide evidence of this transaction to the IR.

Given that this story of lost ISA cheques is familiar to me (2 people I know have had the same thing happen), either the banks are lying about the lost cheques (in most cases), or the banks should have acted by now to prevent this from happening.

I`ll report back next week.

Edited by Prof

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Well it`s good news :D and some :blink:

Just phoned up new ISA provider to see if cheque has landed.

"Yes, it was applied to your account on 1st June". :unsure:

What ?????????

I made a few slightly "forceful" phone calls to them last week, and they told me it hadn`t arrived. They`d even written to my old provider to find out what was going on. I was just told that sometimes it takes a few days for it to get through the system, but at no point last week did they tell me this.

Left hand, right hand, what the other one is doing, they don`t know.

I almost feel like I owe an apology to the old provider.

Mmmmm, things might be interesing (no pun intended) when I transfer next year.

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I've not even been able to get an ISA transfer pack from my preferred bank. So I've been getting 0.5% for the last two weeks on my ISA balance with the prospect of a further 1-2 months o'0.5% during the transfer. Happy days.

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I have a cash card with mine. I am taking £250 out a day before the good rate expires and putting it periodically into the bank as cash to put into a 3% earning account. The Inland Revenue is investigating me trying to find out where my money comes from. What a wonderul service they provide to their customers!

Is this just me ?

A couple of years ago, it took my mum about 4 months to get an ISA Transfer completed (I won`t go into that now).

I applied mid May to transfer from A to B.

A closed my online account around 25th May.

I checked with both providers last week on the situation. B had not received the cheque. A told me they had sent the cheque (1st class).

Just got a letter from B, telling me that they have still not had any response from A.

Phoned A, they confirmed the cheque was sent at the end of May, but B have got a backlog.

Phoned B, they told me they didn`t really have a backlog, and that no cheque has arrived, I have to call back in a few days.

I`ll allow 2 days for a 1st class letter to arrive. I`ll allow the recipient a day or two to open the letter. Why has it taken 10 days for the cheque not to arrive ?

I think I know the answer to my own question, and I told A&B exactly my thoughts on the subject. They both tried to give me valid reasons, but I just made their "reasons" sound like excuses. I was told to allow 30 days for the process to complete. I said I would, but given that a cheque had "vanished", I wanted an explanation.

Is anyone else experiencing this sort of thing ?

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Birmingham Midshites:

April transfer in has just been confirmed, today, July 7, after writing to them!

Sounds like bank "B" in my story.

I think I`ve got everything sorted now. It turns out that bank B wrote to me, 8 days after receiving the ISA cheque from bank A, to tell me that they hadn`t received the cheque ! Two phone calls to them, when I received the letter two days later, and they insisted that they hadn`t got the cheque.

Is it a coincidence that Birmingham Midshires starts with the letter "B", and I had trouble with my new ISA provider ?

(No).

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Sounds like bank "B" in my story.

I think I`ve got everything sorted now. It turns out that bank B wrote to me, 8 days after receiving the ISA cheque from bank A, to tell me that they hadn`t received the cheque ! Two phone calls to them, when I received the letter two days later, and they insisted that they hadn`t got the cheque.

Is it a coincidence that Birmingham Midshires starts with the letter "B", and I had trouble with my new ISA provider ?

(No).

I spoke too soon. It is now over 5 working days since Birmingham Midshite say they sent me a letter confirming it had taken them 4 months to transfer my ISA. Still waiting for the postman, and we have an excellent postal service here.

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I spoke too soon. It is now over 5 working days since Birmingham Midshite say they sent me a letter confirming it had taken them 4 months to transfer my ISA. Still waiting for the postman, and we have an excellent postal service here.

It does seem that the BM employee who puts the letter into the envelope, doesn`t pass it on to his/her colleague to put it in the post for several days.

Its also seems that they receive a cheque, but even a week later don`t know they`ve received it, so they write to you to tell you they haven`t got it. That`s when the "fun" starts. If it wasn`t for the fact that I was on their case, I think I`d still be waiting for my ISA deposit to take place.

I dread to think how they`ll behave when I try to transfer my funds away from them.

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