Lost ISA transfer

[Candellara]

Wife instructed Company X to transfer some of her ISA to Company Y (both household names). Company X said it's been transferred to Company Y. Company Y says nothing received. Both Companies just say "they'll look into it" without much sense of urgency and obviously the Wife is stressed about the mislaid funds.

Who's liable is these situations - Company X or Y? and should she approach the Financial Ombudsman in order to get her money back?

[alscar]

Until whichever company confirms one way or another I would think both"liable" but what time frame are we talking from instruction ?

[Candellara]

alscar said:

Until whichever company confirms one way or another I would think both"liable" but what time frame are we talking from instruction ?

It's been a bit of a nightmare. Original instruction in March. Nothing happened, chased it up multiple times culminating in the transaction supposedly taken place two weeks ago last Friday. Funds gone from old account but nothing showing in the new provider account.

[alscar]

In which case would suggest you and your wife have been more than patient.
If it were me I would now be talking to their Complaints teams if neither company has been forthcoming and probably emailing the CEO of both companies.
The latter will normally pass down to one of his executive team to look into.
Until their Complaints dept hasn't either sorted or closed their conversation the FCA wont be interested.

[Glosphil]

Lost transfer of funds has alway been one of my nightmares.

Only happened to me once but was over £450k for a house purchase. Sending bank wanted 3 days to Investigate & receiving bank said they would write (write!) to the account holder who received the funds in error & allow them 10 days to return the money! Fortunately both banks were local & I got it sorted by the next day. I managed to establish that the receiving account did not exist, but the bank never told my bank that in the 3 days it had the funds.

[Candellara]

alscar said:

In which case would suggest you and your wife have been more than patient.
If it were me I would now be talking to their Complaints teams if neither company has been forthcoming and probably emailing the CEO of both companies.
The latter will normally pass down to one of his executive team to look into.
Until their Complaints dept hasn't either sorted or closed their conversation the FCA wont be interested.

We've had an email to say they are looking into it, so unless it's sorted this week - i'll start to kick things off.

I would guess someone has made a typo on the account number or something but Wife is more concerned about knowing where her money is and will she get it back.

[alscar]

No doubt they will try and suggest Covid itself has to led to issues ( wfh etc ) but given when you first transferred that would just wind me up even more !
I'd be pushing/ emailing their CEO now tbh but either way I'm sure one of them has got your wifes money.

[xeny]

I did a pre Covid ISA transfer and I think it took several months. There's little incentive for the firm you're transferring from to hurry as they no longer get any fees.

[timberman]

I had something similar happen at the start of covid

Op,
you really need to raise this as an official complaint (with both parties if necessary but at least start with company x and see where that takes you), I did the same and got a resolution within a week + a compensation cheque in the post by way of an apology

a typical transfer should normally take no longer than a month, so they've had more than long enough to sort this out and should be making more of an effort to put things right

[Vasco]

Someone has quoted a slightly incorrect sort code or account number. The monies will be safe but probably sitting in a suspense account with the receiving company.

[wong]

xeny said:

I did a pre Covid ISA transfer and I think it took several months. There's little incentive for the firm you're transferring from to hurry as they no longer get any fees.

Months...wow.
I thought in these days of electronic transfers, it was just minutes.

[Candellara]

After many emails back & forth - the money has been located. I think that Company X never ever made the transfer but the money is now safely with Company Y

[alscar]

Glad to hear money safe and transferred.

[The Leaper]

wong said:

xeny said:

I did a pre Covid ISA transfer and I think it took several months. There's little incentive for the firm you're transferring from to hurry as they no longer get any fees.

Months...wow.
I thought in these days of electronic transfers, it was just minutes.

That's the problem with modern technology. Everyone has an app and at the press of a button they make a financial transaction either from/to their bank or cc etc. However, a transfer of a pension value or and ISA, for example, is not simply a matter of a press of a button and in both case the money is not technically yours so it's the responsibility of a third party to process the transfer in a compliant and non scam prospective way.

I've investigated many pension related complaints about a supposed delay because a transaction was not completed "that day...it's simply press a button". It is not that simple and nearly all such complaints are withdrawn after an explanation of what is required for compliance reasons etc..

R.

[alscar]

Roger's point is well made especially for Pensions although I still would have thought that taking a few months to transfer an ISA ( presumably as is ) is still too long.