The Crusader: Couple back in credit after troubles transferring Isas | The Crusader | Finance

When one Isa account seemed to have “disappeared” and funds from another “locked”, a couple’s anxiety levels soared as they tried to track down their savings worth £42,000.

Desperate for help, Ellen and Daniel Shaw contacted Crusader, recounting a complex saga. This included transfers, missing instructions, changes of mind, cancellations and two companies – Nationwide and Hargreaves Lansdown – where the couple already had accounts. 

Choice rightly enables consumers the freedom to get best value, but processes can take longer these days and those with multiple elements can be prey to more confusion which is what happened here. 

++ If you’ve been affected by this issue or feel you’ve been a victim of injustice, please contact consumer champion Maisha Frost on maisha.frost@express.co.uk ++;

Maturing Nationwide Isas were the trigger for the pair, in their 80s, to transfer to Hargreaves and get a better return. But disappointed to be told the completed forms had not been received Daniel asked it to cancel the transfer. However it went ahead. While an option exists to abandon transfer requests after they have been initiated this didn’t happen. 

Further complications followed with returned funds rejected from accounts now closed and new ones needing to be opened. More verification checks were required and the couple’s concerns about missing out on interest spiralled.

When attempts to trace transferred funds in Ellen’s Isa had failed Daniel told Crusader: “Now I’m told I cannot withdraw my money Hargreaves holds that is not invested”.

Both companies are Financial Conduct Authority authorized so customers have a high degree of protection making the risk of the couple ultimately losing out virtually impossible.  But with that possibly taking months in the meantime they were sure to endure acute stress.

To avoid that Crusader alerted the companies to the problems. Both undertook thorough examinations. Hargreaves has provided £150 compensation each to Daniel and Ellen and apologised saying: “We haven’t provided the standard of service we expect here.” It has also confirmed it’s streamlining its cash Isa transfer process. 

Nationwide said: “We acted in accordance with the ISA transfer instructions we received from the sending provider. Unfortunately, they did not cancel the transfer request before the funds were sent as this would have stopped the process. We have supported our customers throughout and they have since opened a new ISA each with us. As a gesture of goodwill, we will be backdating the rate on the ISAs, so they don’t lose out on any interest.” 

[names have been changed]

Expert tip: Before taking out an Isa check the transfer terms too and ask about timings so you avoid rushing and have flexibility if mistakes are made. Budget changes for cash Isas mean from April 2027 the annual limit is reducing from £20,000 to £12,000 with an exemption for those over 65 who will be able to continue saving up to £20,000.