A Banking Story.

  morddwyd 20:33 07 Sep 2010

I don’t need help or advice, as this is already with the Ombudsman, that's why it's not in Consumerwatch.

This is just a story, albeit true, just for information and interest.

Some weeks ago my bank offered me an enhanced rate of interest if I transferred my cash ISAs to them from another provider. Having looked at the details, I decided to go ahead and asked for the necessary forms.

When delivered only one transfer form had been sent and I asked for another form. I mention this to make it perfectly clear that from the outset two accounts were involved.

I duly completed the forms, but when the transfer had gone through I noticed that both the accounts had been combined into one. For personal and domestic reasons this was not satisfactory and I asked the bank to separate them into two discrete accounts.

I was advised that only one ISA a year could be opened. I did not see that this was applicable, since the accounts were already open, and had been for some years, and were simply being transferred, so I asked for the whole transaction to be cancelled and my funds returned to my original provider.

I was then asked to confirm that this was what I wanted to do, and I did so. As I had heard nothing some two weeks later I asked for a progress report, only to be told that the bank was awaiting confirmation from me that I had confirmed with my previous provider that they were willing to accept the accounts.

This was the first I had heard of this, and I, in turn, asked the bank to confirm that it had, in fact, just sat for two weeks and done nothing about my request.

I received no reply, so made a formal complaint,

When I made my complaint the bank said that a mistake had been made, and that the accounts could, in fact, be separated. I told them to go ahead, only to be told today that another mistake had been made, and they could not, after all, carry out my wishes, and blaming my previous provider for this.

I then decided that enough was enough and went to the Ombudsman.

In essence the bank got my business by offering something they could not provide, and then arranged matters so that I had to leave my business with them until the next financial year.

Oh, they did offer me £50 “for my inconvenience”

I told them, though not in so many words, to stick it somewhere dark!

  Forum Editor 01:08 08 Sep 2010

You can only split the savings in previous years' Isas, not this year's; for example, if you put £3,000 into an Isa this year, it cannot be split into several accounts – but £3,000 invested last year can be split-up into three pots of £1,000 and transferred elsewhere.

It's up to the individual provider to decide whether or not to accept transfers, but if the ISA was opened this year the whole amount must be transferred.

  morddwyd 09:46 08 Sep 2010

Thank you.

Now if only the bank had explained that at the outset, just as simply, the whole sorry saga could have been avoided!

However, this was always two separate ISAs, being transferred, totally, in two separate operations, as a result of two separate requests.

Once my bank combined the two, of course, the die was irrevocably cast.

  spuds 23:06 08 Sep 2010

Martin Lewis Money Matters loves to hear tales like this. He can usually get the problems resolved very quickly.

This thread is now locked and can not be replied to.

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