A customer's plan to pay off their mortgage was significantly complicated by a prolonged ISA transfer delay with HSBC, which stretched for 15 weeks and caused considerable distress.
The customer, who has banked with HSBC for 44 years and has their mortgage with the institution, intended to use savings to clear the outstanding £125,000 balance at the end of August when their fixed term concluded. To consolidate the funds, they began transferring money from other savings accounts into their HSBC cash ISA at the start of the tax year. This included over £16,000 from a Post Office ISA, a transfer initiated on April 22.
However, the funds failed to materialize in the HSBC account, leading to a 15-week waiting period and growing anxiety as the mortgage repayment deadline loomed. The customer reported sleepless nights due to the uncertainty.
The transfer process proved to be unusually difficult. Initial attempts to initiate the transfer online via HSBC's electronic form were unsuccessful. While the Post Office was listed as an approved ISA provider, the form rejected the 10-digit roll number provided, insisting on a 12-digit number and a sort code that did not exist for Post Office accounts. Attempts to resolve this with HSBC customer service were met with unhelpful suggestions, including entering 'XX' as the final digits, which raised concerns about account security.
Eventually, the customer was advised to complete a paper form at an HSBC branch in Bridgend on April 22. Following this, the money left the Post Office account but never appeared in the HSBC ISA. Despite multiple calls to HSBC Premier customer service, three official complaints, and even a letter to the chief executive, the issue remained unresolved for months.
This situation appeared to be part of a wider problem with HSBC ISA transfer delays that had been affecting customers since April. The bank had introduced significant cash incentives for new customers opening a Premier current account and transferring a large ISA balance, which reportedly led to an influx of applications that overwhelmed the bank's systems. These delays meant some customers waited far longer than the standard 15-day transfer period.
Notably, the customer in question was not eligible for the new customer incentives, as they were already an existing HSBC Premier customer and using an existing ISA. Their sole aim was to consolidate funds for the mortgage payment.
After 15 weeks with no resolution and the money still not in their HSBC account, the customer contacted consumer champion Helen Crane. Shortly after, the funds were returned to their Post Office account, leaving the customer back at square one.
Following the intervention, HSBC acted swiftly. The customer was contacted by a senior bank employee who, according to the customer, attributed the delay to the referral to the media. The bank then expedited the ISA transfer, which was completed within days. The bank also allowed the customer to pay off their mortgage early, waiving any early repayment charges. As compensation for the ordeal, the customer received £500, in addition to £175 previously awarded for earlier complaints. Backdated interest on the transferred funds, totaling £167, was also paid, along with a hamper from Fortnum & Mason.
A spokesperson for HSBC acknowledged the difficulties the customer experienced and confirmed the transfer was now complete. They stated that compensation and backdated interest were offered in recognition of the inconvenience caused.