A customer who transferred more than £80,000 from their Trading 212 account to an HSBC fixed-rate cash ISA experienced a prolonged delay that left the funds inaccessible for over five weeks. The transfer, initiated on April 22, was confirmed as successfully settled by Trading 212’s clearing bank, JP Morgan. However, the corresponding balance failed to appear in the HSBC ISA account, prompting an investigation by HSBC.

HSBC acknowledged the issue as a “bank error due to processing delays” and upheld the customer’s complaint. Despite this, the funds remained unavailable for an extended period, and the bank was unable to provide a clear timeline for resolution. The delay occurred amid heightened demand for HSBC’s cashback offers and competitive ISA rates, which the bank admitted it struggled to process promptly.

During the same timeframe, the customer’s wife conducted a similar transfer from Trading 212 to a Santander cash ISA, which completed within two working days. The disparity in processing times exacerbated the customer’s anxiety, leading to consultations with a general practitioner for anxiety and insomnia.

HSBC ultimately credited the customer’s account with £83,900 and additionally paid £225 in goodwill compensation. The bank also committed to backdating interest payments to the original transfer date of April to ensure the customer received the expected returns. As part of HSBC’s cashback promotion, the customer is eligible to receive up to £500 later this year, provided the funds remain in the ISA account.

HSBC attributed part of the delay to missing paperwork when Trading 212 initially sent the funds, alongside the bank’s broader backlog of ISA transfers. In a statement, the bank expressed regret for the distress caused by the delay.

Industry guidelines dictate that cash ISA transfers should be completed within 15 working days. Customers affected by transfer delays that result in financial loss are entitled to lodge complaints and seek compensation to restore their position as if the delay had not occurred. For stocks and shares ISA transfers, compensation assessments consider market performance fluctuations during the delay period.

The case highlights ongoing challenges for banks in managing increased ISA transfer volumes, underscoring the importance of clear communication and timely processing to prevent customer hardship.