Recently, I decided to move the £18,000 I had in a three-year Halifax cash Isa, which had reached maturity, to a cash Isa with the Post Office. However, when I received confirmation from the Post Office I discovered it had reduced the interest rate, so I cancelled the Isa and asked it to transfer the money back to Halifax, which it agreed to do.
That was six weeks ago. Many phone calls and much heartache later, the money has still not been returned. Both parties blame the other for the situation while I am left not knowing where my money is. What can I do to get it back? RB, Herefordshire
Isa transfers should be completed within 15 working days following rules introduced in January 2011. Although your original transfer from Halifax to the Post Office did complete in this time, the problem was the transfer back to Halifax when you realised the Post Office interest rate had fallen.
By this time your original Halifax Isa account had been closed so there was nowhere for your £18,000 to go. A further complication was that the Post Office uses cheques for Isa transfers, while banks such as tHalifax use an electronic system. Then, alarmingly, Halifax told you your funds had been misplaced and that the Post Office’s “administration errors” meant they were unaccounted for. No wonder you were worried.
While both firms were trying to unscramble the mess, you weren’t being paid any interest. Industry safeguards mean interest must be paid by the new provider from the first day that interest is no longer paid by an old provider.
Both firms have now apologised and offered compensation. A Post Office spokesperson said: “As a goodwill gesture, we have offered to refund the interest owed on the Post Office Isa account at the rate originally applied for.” Halifax has paid you £150 and a further £42 to cover your costs in recognition of the “distress and inconvenience caused”.
Your money is now in a new Isa with Halifax and you are better off than you would have been if everything had gone smoothly.
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