Jump to content
House Price Crash Forum
byways

Isa Exit Fees - Common?

Recommended Posts

I was surprised to have this large EXIT charge made after transferring to another much better provider (Hargreaves Landsdown), a Stock & Shares ISA, AS CASH!

I was only transferring out as as the TDW 'service' was so naff. They even seemed to be saying in their Final' letter, go on complain to the Financial Ombudsman - we don't care! Unfortunately they seem to have to pay £500 for a FOS investigation rather than rebate their £50 + vat. Had this been the only problem, I would not have bothered, but they have been nasty company to deal with all along.

The charge was imposed after it was opened with Hoodless Brennan, who decided to transfer it to TDW, just by logging in we were deemed to have accepted the T&C. The small print is ambiguous but they are relying on the T&C. Their 'Account Features' of course make no mention of it, only the free transfer in etc etc.

Thus is not sour grapes, as the investments in the Trading Account have done quite well, but I now want to move that asap after the unpleasant experience in trying to resolve this - and all the other matters.

So I wanted to alert anyone thinking of using TD Waterhouse to think again, and caveot emptor.

My last letter to them:-

(I have redacted names as they are only doing their job)

21/1/11

FAO Angela xxxxxx,

'Customer Services' Manager

and the Chief Executive,

TD Waterhhouse.

Leeds LS1 4AX

LETTER BEFORE LITIGATION

Open letter.

Dear Ms xxxxxx,

Thank you for your letter of 17/1/11, received today.

I am not satisfied with your quite frankly appalling service.

My complaints are, that Richard DID discriminate against my wife's perfectly reasonable request in mitigating her difficulty in hearing. Previously TDW have spoken with her and then, after security, with me on all matters. So why the arbitrary change in procedure now? Your excuse is pathetically inadequate.

On the matter of the £50 EXIT FEES, you have not, even though requested, been able to provide evidence we have accepted the significant change from the terms offered by Hoodless Brennan, who will be copied into this letter. I have had no difficulty at any time with HB or HB Markets, and do still trade with them.

Your "A Guide to TD Waterhouse" leaflet details the £0 Admin fees for ISA portfolios worth more than £3,600, but conveniently omits mentioning the extortionate exit fee.

Your Rates and Charges of 22/3/2010 which are not those agreed when the account was opened with Hoodless Brennan, does have a closure fee shown under the "Regular Investment ISA". This was NOT such an account. There is however a charge of "up to £5" shown for "Closure of an account, Brokerage and Banking Services (all accounts)". If you are relying on this vague, confusing, ambiguous leaflet, subsequently retrospectively applied, then we will see you in Hxxxxxxx Small Claims Court, to argue our case.

The EXCESSIVE DELAY in transferring out of TD Waterhouse, has not been dealt with. Why was it not possible to identify the account from the request made by Hargreaves Landsdown? What does this say for your records? Were you in possession of the Customer FULL name, address, POSTCODE, and date of birth, and National Insurance Number, and Signature, all correctly stated, AT THAT TIME?

Did your letter of the 12th November 2010 to Hargreaves Landsdown state "Transfer Out Cancellation"? If so, why?

Why would you not accept the required details by Fax? Hargreaves Lansdown has been put to considerable extra trouble and expense, they have done everything they can to expedite the move. We have also acted promptly throughout. The only business that has been lamentable, is again, T D Waterhouse.

Despite our request first being made on 9th November by Hargreaves Landsdown, and your claims not to be able to locate the next request of the 3rd December or the next request from them on the 16th December, nor the next request of 21st December (Recorded Delivery), and made yet again on the 4th January (Special Delivery), you do finally admit to having had the request by 6th January, yet STILL there has been no receipt of the money from you. How long does it take you to transfer funds, you hang onto the interest-free money for as long as you possibly can.

CREDIBILITY

'Richard' who refused to give a surname, stated on the 12/1/2011 that "TD Waterhouse had not received any request to transfer the ISA". This is not factually correct. Even you admit to having had a request on the 6/1/2011 in your letter of 17/1/2011. Why was I told this untruth?

When another customer representative (Ms xxxxxx) from TDW called on 13/1/11 I was told the first request to transfer had only been made "within the last 24hrs". Again this was not truthful.

You write on the 17/1/11 that "which again was not received by us AND HAS BEEN CONFIRMED BY THE POST OFFICE TRACKING SERVICE" I have reason to doubt that this is factual. The Post Office on 21/1/11 state "Your item is being processed but we have not received confirmation of delivery." Clearly this is not the same as them CONFIRMING you have NOT received it. When and precisely WHAT did the P.O. state to you?

I would confirm I fully intend to refer the matter to the Ombudsman (FOS) assuming we get no further with the FSA. This in no way signifies we are not taking legal action for the return of the Transfer out fee, without further reference to TDW as we have received your 'final response' on this matter, and the losses incurred through your incompetence in the transfer.

You ask for details of using the 'Contact Us' form on your web site. The error was on the evening of 18/1/11 when a load of gobbledegook comes up, in the same way as many graphs do, when attempting to use. At this moment it is working.

On the 12/1/11 at 20.33hrs your reports was again in error, on the Trading account 0xxxxxxx, as has been reported to you on a number of occasions, all to absolutely no avail - other than once blaming 'feed supplies', the Printed report showed MML as a price change of -433.00p Market Value as £0.00 (yet the Portfolio report showing +£555.43), and an error on the total of £1,554-12p. You will have on record complaints dating back to 1/5/2010 that Caroline Hxxxxxxxx was supposed to be resolving, but has not. (We did have a letter of platitudes apologies, "aware of known issues", "majority of these issue we are aware of", "trying to fix it", "corruption on report is noted", "disappointed to hear you have suffered losses because our web site does not make it clear whether prices are up to date or not", "acknowledge Gains/Losses for certain stocks are showing incorrect information" etc. etc. This is simply not good enough for a financial web site on which important decisions are being made. This is another matter that will be referred to the FOS. The service has simply not been fit for purpose, and this fact will form part of our claim against TD Waterhouse.

I will also refer to the FoS my grievance with your gross incompetence at sending my ISA cheque to me direct thus losing the ISA tax wrapper status last year.

I have as I mentioned, described our experiences with TDW, seeking advice, on quite a number of financial web sites, and I am writing to Money Mail today, amongst others. It clearly seems you feel you have no reputation you wish to enhance or preserve.

It does seem I am not the only intensely dissatisfied customer you have - the adverse comments are legion. This is just typical of someone I have had no contact with, posting on a respected web forum:

"TDWATERHOUSE - DO NOT USE

As mentioned above many times, customer service is abysmal.

The company is arrogant to the core and treats 'customers' with absolute contempt.

The infrastructure behind their systems is appalling - as soon as there is a spike in demand e.g. monday mornings or sharp fall in FTSE it cant cope. Its been like this for years, I have been toing and froing with the 'customer service' dept by letter about this and get nowhere - i can go to the FSA ombudsman - is all they can come up with. No apology or attempt to console me.

The trading charges are low - but the market quotes are always uncompetitive with other brokers. You might save £2 on the charge but you'll lose £20 on the transaction.

TDW is a bucket shop stuck in a timewarp. The previous 'customer service' boss left last year because he couldnt make a difference - at least he had a conscience and I wish him well.

Transfer your ISA to or from TDW - dont plan on trading it for months."

Share this post


Link to post
Share on other sites

The small print is ambiguous but they are relying on the T&C. Their 'Account Features' of course make no mention of it, only the free transfer in etc etc.

On TDW's Trading ISA page http://www.tdwaterhouse.co.uk/typesofaccount/tradingisa.cfm

under how much does it cost their is a link to their charges http://www.tdwaterhouse.co.uk/typesofaccount/ratecard-isa-sipps.cfm

"Plan/Account Closure or Transfer out £50 + VAT + the relevant administration fee. "

Do you know what Hargreaves Landsdown charge? I didn't notice anything about an exit fee on their charges or FAQ pages.

http://www.h-l.co.uk/investment-services/isa/savings,-interest-rates--and--charges

http://www.h-l.co.uk/investment-services/isa/frequently-asked-questions

Share this post


Link to post
Share on other sites

On TDW's Trading ISA page http://www.tdwaterhouse.co.uk/typesofaccount/tradingisa.cfm

under how much does it cost their is a link to their charges http://www.tdwaterhouse.co.uk/typesofaccount/ratecard-isa-sipps.cfm

"Plan/Account Closure or Transfer out £50 + VAT + the relevant administration fee. "

Do you know what Hargreaves Landsdown charge? I didn't notice anything about an exit fee on their charges or FAQ pages.

http://www.h-l.co.uk/investment-services/isa/savings,-interest-rates--and--charges

http://www.h-l.co.uk/investment-services/isa/frequently-asked-questions

Online the T&C are now clearer, the leaflet (ie 22/3/10 is NOT) when this was opened 10 years ago there was no charge. i Have not agreed to any such change (nor would I), other than 'by logging in' they did not make this substantial change being imposed clear. But of course they are not a charity, they are there to screw you! Or so it seems.

HL do not charge an exit fee, by going on your first link, go to open an online ISA, and click on T&C, p2 in the large box does not show any. Or ring their very helpful number, a hummin bean actually answers you, not a robot. But why would anyone want to leave an ISA that is run properly? OK eventually perhaps.

I just wanted to find out if it was a common con, and to suggest people check adverse / unfair terms. And the catalogue of problems we have both had with TD Waterhouse makes us both wish we had refused to be transferred to them. Certainly as bad as Santander.

For diversity we had all our pension / funds / ISAs in different places, thought lets rationalise, Funds with HL, stocks with TDW, but now I am selling them as soon as they have run their course and will use either HL or Interactive Investor possibly.

Edited by byways

Share this post


Link to post
Share on other sites

Didn't read your awesome-looking rant just yet (will check it later) but yes this is common. My previous provider would have conned me out of £10 per stock transferred but fortunately my new provider paid these fees. Bit of a bummer if you have lots of small holdings / bought RBS or LLOY any time prior to the crash as £10 could potentially be a large percentage! All about dissuading you from leaving and hopefully will be picked-up by the FSA as this sort of thing shouldn't be going on in a product like an ISA and I'm sure this sort of nonsense puts people off investing.

Share this post


Link to post
Share on other sites

Online the T&C are now clearer, the leaflet (ie 22/3/10 is NOT) when this was opened 10 years ago there was no charge. i Have not agreed to any such change (nor would I), other than 'by logging in' they did not make this substantial change being imposed clear. But of course they are not a charity, they are there to screw you! Or so it seems.

HL do not charge an exit fee, by going on your first link, go to open an online ISA, and click on T&C, p2 in the large box does not show any. Or ring their very helpful number, a hummin bean actually answers you, not a robot. But why would anyone want to leave an ISA that is run properly? OK eventually perhaps.

I just wanted to find out if it was a common con, and to suggest people check adverse / unfair terms. And the catalogue of problems we have both had with TD Waterhouse makes us both wish we had refused to be transferred to them. Certainly as bad as Santander.

For diversity we had all our pension / funds / ISAs in different places, thought lets rationalise, Funds with HL, stocks with TDW, but now I am selling them as soon as they have run their course and will use either HL or Interactive Investor possibly.

Thanks for that.

It seems a bit daft to put the terms behind the apply button - I wanted to read the terms before deciding if I was going to apply.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.