Alliance & Leicester - prolonged delay in transfer of Direct Cash ISA
In early 2007, we had an exasperating time due to the reluctance of Alliance & Leicester plc bank to transfer our money from its Direct cash ISA to a different cash ISA provider.  Alliance & Leicester took exactly 31 days from the date that the bank received the transfer request to the day the funds were sent to the new provider.  During this time we had no communication to say that the request had been received, let alone the reasons for the delay in transfer.  Our repeated phone calls on an 0870 number did not help to progress matters.

In responding to our written complaint about this length of time, the bank stated that it had acted in accordance with HM Revenue & Customs guidelines in completing the transfer in 30 days.  Yet, the bank can transfer funds quite rapidly since it states that for "Easy access to your cash with no notice for withdrawals" ... "It takes 24 hours to transfer money between your Direct ISA and an Alliance & Leicester current account, or 3 working days following the date of transfer for transfers between an account held with another financial institution." (Our emphasis on text at: http://www.alliance-leicester.co.uk/savings/index.asp?page=direct-isa).   However, the bank is talking here about transferring money out but not closing the account.  There is nothing on how long it takes to transfer the Direct Cash ISA to another provider in their Terms and Conditions at : http://www.alliance-leicester.co.uk/savings/SA8887.pdf (online on 5 Jun 07).

The delay in transfer of cash ISA funds to a new provider is another example of how some banks hold on to our money for as long as they can.  Given the IT systems used by the banks, the 30 day guidelines set by HM Revenue and Customs needs reduction.  It is our money that the banks hold onto against our wishes.

This page was written to draw attention to the misleading information and the exploitative and unhelpful attitude of the bank and of its Customer Services and Complaints Section.  Their website does not enable email contact - only contact for Direct ISA is via 08703 333 444.  The Bank could take a lesson on Customer Services Contact Methods from the excellent information provided by Wilkinsons - see http://corporate.wilkinsonplus.com/help_advice_contact.asp?CatID=5&Section=6, which provides a variety of methods, including an 0800 number.  We have written to The Customer Services of Alliance & Leicester plc to notify them of the existence of this page. 

Update

There was a similar case reported by Jessica Gorst-Williams in Telegraph Money on 26 January 2008.  See the case titled ISA transfer flagged down mid journey at: http://www.telegraph.co.uk/money/main.jhtml;jsessionid=CJRDKGF2KELDRQFIQMFCFGGAVCBQYIV0?view=DETAILS&grid=&xml=/money/2008/01/25/cmjessica25.xml

Blog
The blog, entitled Praise or  Complain provides Alliance & Leicester with the opportunity to address points raised here.

Mahes Visvalingam, 05/06/07
Last updated on 04/02/08