ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Feb 16, 2020 18:44:43 GMT
The 30 days is guidance not mandatory unlike the 15 days for cash isa which is mandatory.
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optimist
Member of DD Central
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Post by optimist on Feb 18, 2020 21:38:09 GMT
Hi Ilmoro,
It's a bit ambiguous in that other types of transfer should be 30 days but "asking your isa provider" doesn't help much if they say 5 years for the loans to pay off. I wrote to them today and asked them to transfer the outstanding balance (currently 97p) the rest, I believe would count as a withdrawl to the other account. Failing that, I offered to buy my ISAs from myself using my standard account. Thus I send them 5.5K, and they send it back. According to their conditions, they can't sell loans if they are late or defaulting. Presumably even if I buy them from myself, in which case they can't do the transfer, whatever happens to the rest. HMRC states: Deadlines and complaints ISA transfers should take no longer than: 15 working days for transfers between cash ISAs 30 calendar days for other types of transfer If you want to transfer investments held in an innovative finance ISA, ask your provider how long it will take. If your transfer takes longer than it should, contact your ISA provider.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,788
Likes: 11,007
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Post by ilmoro on Feb 18, 2020 21:52:23 GMT
Hi Ilmoro,
It's a bit ambiguous in that other types of transfer should be 30 days but "asking your isa provider" doesn't help much if they say 5 years for the loans to pay off. I wrote to them today and asked them to transfer the outstanding balance (currently 97p) the rest, I believe would count as a withdrawl to the other account. Failing that, I offered to buy my ISAs from myself using my standard account. Thus I send them 5.5K, and they send it back. According to their conditions, they can't sell loans if they are late or defaulting. Presumably even if I buy them from myself, in which case they can't do the transfer, whatever happens to the rest. HMRC states: Deadlines and complaints ISA transfers should take no longer than: 15 working days for transfers between cash ISAs 30 calendar days for other types of transfer If you want to transfer investments held in an innovative finance ISA, ask your provider how long it will take. If your transfer takes longer than it should, contact your ISA provider. Certainly hedging their bets, not really that surprising. Technically an illiquid asset class & no guarantee there will even been an exit mechanism for loans. Unfortunately you cant buy your ISA loans yourself, they have to be offered on an open market, nor can the platform facilitate the transfer to your non-ISA account as that's against the rules too.
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optimist
Member of DD Central
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Post by optimist on Feb 19, 2020 1:31:50 GMT
Thanks for your advice, this bit is a bit less clear cut.
I've put all of them up for sale, I therefore hope that I (or a friend) would be able to legitimately buy them "on the open market", except for the late and defaulted ones which would be defined as illiquid.
The mechanism for one person to buy them all may not still be there
it may not be counter to regs if it was normal practice before they automated the system.
It may depend on how difficult it is for them to do or whether it would still count as an open market.
I think they can transfer them (see below) but they may have to demontrate they tried to sell them before considering that they're illiquid, and there's no timescale.
Their stated process on their FAQ is: If you want to transfer your F*C ISA to another provider, you must first sell your loans. Remember you can’t sell loans that are late or that are experiencing credit issues. Any loans that can’t be sold will be transferred over to a new Classic account, and will no longer be eligible for tax-free interest
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,788
Likes: 11,007
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Post by ilmoro on Feb 19, 2020 8:33:38 GMT
Thanks for your advice, this bit is a bit less clear cut.
I've put all of them up for sale, I therefore hope that I (or a friend) would be able to legitimately buy them "on the open market", except for the late and defaulted ones which would be defined as illiquid.
The mechanism for one person to buy them all may not still be there
it may not be counter to regs if it was normal practice before they automated the system.
It may depend on how difficult it is for them to do or whether it would still count as an open market.
I think they can transfer them (see below) but they may have to demontrate they tried to sell them before considering that they're illiquid, and there's no timescale.
Their stated process on their FAQ is: If you want to transfer your F*C ISA to another provider, you must first sell your loans. Remember you can’t sell loans that are late or that are experiencing credit issues. Any loans that can’t be sold will be transferred over to a new Classic account, and will no longer be eligible for tax-free interest Actually thats probably right. I'm talking rubbish. HMRC doesn't care if something becomes taxable so no restrictions on moving out, only in/within ISA.
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