Classic to ISA Transfer incorrectly reinvests repayments

I wonder what the FCA might say about this mistake - Like you Mrs Aju has complained to zopa and received a very similar answer. I poked her only yesterday to ask for an update but I'm not sure what she has done as yet. She usually CC's stuff to people like the FCA. 

Of course you can ask for Zopa to fix this and if its not resolved within 8 weeks you can then pass this on to one of the ombudsmen services. I think this may well be the FCA but don't quote me. One thing I do know is that zopa is regulated but as to the extent they are regulated I'm not sure.

You could also try the Financial Ombudsman service perhaps.

All of that aside it has been my experience that zopa is usually on the ball about this stuff and in the past I have had refunds etc when I wasn't even aware there was an issue. Most recently I received an odd payment that when I queried it it turned out that they had reimbursed me for a bad loan - that I still have I might add - by making a goodwill payment to cover the loss on it. Apparently the loan was a fraud of some kind so its probably never going to pay anything back but they just gave me the capital and some interest on it.

I think they are a bit busy on other things perhaps, they opened up to new investors recently those people will not be coming here perhaps for a while yet so will be bothering Zopa more directly I think. Then once the 4 month window ios up if they are looking at their investments closely - assuming they understand it all - they will be bothering people regarding defaults etc.

Zopa probably has someone investigating it as we speak - well perhaps not quite as its past 17:00 on a friday everyone will be up the pub - oops perhaps things have changed since I worked in the smoke!. What they might want to do is fix the issue in live system first and then find out who has/d the issue and figure an approach to resolve it.

In the normal scheme of things once you formerly make a complaint they usually have certain timescales they work to and if they don't resolve it with in 8 weeks then you can go to the ombudsman anyway without a final response letter. That's the way it works for other areas that are regulated I'm sure it similar for the FCA and its bodies.

Of course this area of FCA may not be the same as other areas of regulation but the basic idea is sound.

Oops I think I repeated myself in the third para - apologies the dementia is worse today must be the weather ;-)

Mrs aju is driven to distraction every time i press the button to lock the car and seconds later i forget and say to her "did i lock the car ?" 

Thankfully i can still operate excel.

Well, another week has passed, and still no action or further clarification.

I wouldn't rate that as a very good response, to be honest. I will be writing again, shortly ...

I had another reply from them today, they're going to sell off the oversized chunks, no 1% fee of course (well, I had a second reply too, but one was caused by me where I'd gone over my ISA limit thanks to forgetting about my old ISA).

Well, I've just received my update too. They confirm again that the loans will be sold, but no timescale is indicated. The wording is extremely poor and unclear, so I've written back for clarification on two points:

FIRST POINT - ACCOUNT SETTINGS

You confirm that the technical error "meant that any funds held within your holding account, was swept into your default funding preference at the time and thus new loan contracts was created. "

What concerns us is that you say "Once your loan contracts have been repurchased, the funds will then be credited to your ISA holding account. ***Please be informed that there is the possibility that the funds held within your ISA holding account, will eventually be swept to your default funding preference***."

This would simply be a repeat of the original problem, and would obviously be unacceptable!

Both of our accounts are set for repayments to go to holding. Neither of our accounts is reinvesting. So there should be *no* possibility of funds being "swept" anywhere away from holding and obviously if this were to occur it would be the subject of a further complaint.

I check our accounts once a day, Monday to Saturday. More frequent checking is not possible, particularly since I have no idea when these sales will start or finish.

SECOND POINT - INTEREST ON FUNDS INCORRECTLY REINVESTED

You say "any interest which has been accumulated will remain with you".

This is not good enough, or clear enough. Obviously we must receive interest for *every day* the funds have been lent out, right up to the day of sale. We need a clear and unambiguous statement to this effect from Zopa.

********

Ho hum.

Well, I've had a response, and it's all good news:

In regards to your first point: the funds will only be swept back into your preferred product if your repayments are set to a product. Considering that your repayments are currently set to your ISA holding account. All funds should be sent there.

In regards to your second point. Yes, I can confirm you will receive interest for everyday that the loans were invested. My senior colleague will be selling these loans within the next few days.

Hoorah. Now all that remains is compensation for my time, inconvenience and general anguish.