A customer of 44 years with HSBC faced significant difficulties when attempting to transfer £16,000 from a Post Office Isa to an HSBC Isa, with the funds becoming stuck for 15 weeks. The delay threatened the customer's ability to pay off their mortgage by the end of their fixed term in August.
The customer, identified as C.W. from South Wales, began transferring savings into their HSBC cash Isa at the start of the tax year to accumulate the necessary funds for their £125,000 mortgage. A transfer of £16,000 from a Post Office Isa, initiated on April 22, failed to complete within the expected 15-day period.
Technical Difficulties and Manual Processes
Initial attempts to complete the transfer online proved unsuccessful. The HSBC online form listed the Post Office as an approved Isa provider, but it rejected the 10-digit roll number provided, requiring a 12-digit number and sort code that did not exist for Post Office accounts. Multiple attempts to resolve this with HSBC customer service were unfruitful, with one representative suggesting a workaround that proved ineffective and concerning for the customer.
Ultimately, the customer was directed to visit a branch to complete a paper form, which they did in Bridgend on April 22. Following this, the £16,000 left the Post Office account but never arrived at HSBC. The customer made numerous calls to HSBC Premier customer service and filed three official complaints, even writing to the chief executive, but received no concrete resolution for months.
Wider Isa Transfer Issues at HSBC
This incident appears to be part of a broader issue with HSBC Isa transfer delays that had been affecting customers since April. The bank had launched incentives for new customers, offering up to £1,000 for opening a Premier current account and transferring a large Isa balance. This influx of applications reportedly overwhelmed the bank's systems, leading to delays exceeding the standard 15-day transfer period.
Another HSBC customer reported waiting over six weeks for a £52,000 life savings transfer, also encountering issues with online forms and needing to use postal applications due to their rural location. The customer in this case, however, was not eligible for the new customer incentives as they were already an HSBC Premier account holder and using an existing Isa.
Resolution and Compensation
After 15 weeks, the £16,000 was returned to the customer's Post Office account, effectively resetting the process. Following contact from a consumer champion, HSBC reportedly took swift action. A senior employee contacted the customer, explaining that the transfer had been accidentally "abandoned" by an HSBC employee.
HSBC completed the transfer within days. The bank also allowed the customer to pay off their mortgage early, waiving any early repayment charges. As compensation for the inconvenience, 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 Fortnum & Mason hamper.
"We're very sorry for the difficulties our customer has experienced with completing an Isa transfer," a HSBC spokesman stated. "We are pleased to confirm this process is now complete. In recognition of the inconvenience caused, we have offered compensation and have backdated all interest."