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DoctorSolar

Bank witholds "instant access" account funds

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I do not believe the "backlog" story.

Sounds like a run is about to start. I'll tell anyone I know with a BoI account to get the money out now.

I'm going to open a Post Office account so I can join the run ;)

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You are not alone.

 

"Jessica investigates: £15,000 beyond reach in Post Office's 'instant access' account"

 

http://www.telegraph.co.uk/finance/persona...ss-account.html

 

Not the same type of problem though is it? The example here looks like a cock up has been made on the account, it is totally different.

 

Following various problems outlined in my letters, I believed that my account was finally fully operational. I decided to transfer the balance by telephone to my nominated account and from there invest in a fixed bond elsewhere.

 

When telephoning to make this transfer, I was informed that no record had been made of my nominated account, even though my deposit cheque bore details of it. I had to repeat these over the phone, after which my account was frozen.

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I do not believe the "backlog" story.

Sounds like a run is about to start. I'll tell anyone I know with a BoI account to get the money out now.

 

I suspect you are wrong. Banks that have been given Government guarantees are unlikely to have a run started on them. In fact, Northern Rock became more popular for savers money after it was nationalised.

 

DUBLIN (Reuters) - Ireland's Finance Minister ruled out fully nationalising either Allied Irish Banks (ALBK.I) or Bank of Ireland (BKIR.I) following the creation of a "bad bank" and said its setting up would not distract from a second vote on the Lisbon Treaty.

 

Dublin may end up with a majority stake in its top two lenders if it has to boost their capital levels following the transfer of property loans to the "bad bank," but Brian Lenihan said on Sunday 100 percent takeovers were not on the cards.

 

The government took over the country's No.3 lender Anglo Irish Bank in January after a slew of scandals triggered a run on its deposit base.

 

"We don't anticipate nationalising any other institutions in their entirety but if the losses in these institutions (Bank of Ireland and Allied Irish Banks) are on a very large scale then clearly a substantial state stake will have to be taken," Lenihnan said in an interview with state radio.

 

http://uk.reuters.com/article/idUKTRE57M0XD20090823

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I suspect you are wrong. Banks that have been given Government guarantees are unlikely to have a run started on them. In fact, Northern Rock became more popular for savers money after it was nationalised.

That's only because the pound is still showing signs of stability.

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They have now told me that during the 2 month waiting period I will continue to receive 7% interest on my deposit. Given that this is double most other current rates perhaps other people are happy to wait?

 

On the other hand surely other folk must need access to their cash and have financially planned on getting it now.

 

After threatening them with a call from the FSA they then said I could get my cash back in 10 working days if I wrote to them requesting my deposit back right away. Something does not add up here. Surely this must add extra admin to the process. How does opening a letter from me magically speed up the process?

 

Anyway 10 working days after sending written request is not exactly "instant access". I will be pursuing a damages claim and let y'all know how it goes.

 

 

I had trouble with Capita last year. When Equitable reduced the penalty on transferring out, I requested a transfer to the TD Waterhouse SIPP services which were administered by Capita. Equitable was good and processed the transfer very quickly. It was the summer so I wasn't around much. I found that while the funds had been transferred, I still didn't get the credit in my SIPP account so I couldn't deal when I had wanted to. TDW said the problem was with Capita. I assumed it was an administration cock-up and called them and asked them to get on and credit the funds to my SIPP a/c. Went on holiday again and thought nothing of it - 'twas only £20K so I wasn't that bothered. When I checked up again after a month, there was still no money in my a/c.

 

Well I decided that enough was enough. I called them and got pretty irate. I told them they had been sitting on my money for 2 months and if the funds were not credited to my account that very day, I would be contacting the FSA to make a formal complaint. Furthermore, I told them that I would be posting my story on financial sites on the internet as well as telling as the newspapers that there was something very dodgy about Capita as evidenced by their refusal to release my funds. (This was shortly after the Lehman collapse.)

 

The money reached my account the following day - they couldn't make the deadline for same day transfers.

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It makes the whole banking sysytem sound like a ponzi scheme (im sure it is...) Bernie Maddoff was reluctant to give back the capital but encouraged depositers to "invest" by offering high returns.

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Not the same type of problem though is it? The example here looks like a cock up has been made on the account, it is totally different.

I usually take a similar type of view to yourself which could be summarised as "don't suspect conspiracy when the same effects could be achieved through incompetence". However, I am becoming increasingly concerned in this particular case. A number of other people I have spoken to are now facing the same issue as me. In fact my folks have had their "instant access" account frozen with absolutely no reason given and no timescale for release of funds.

 

They are also looking to claim damages and getting the FSA on the case.

 

Given we have a fractional reserve banking system we know that the banks don't have all the depositors money. News such as this will make folks justifiably nervous that their accounts could also be frozen for no clear reason. If the bank of ireland aren't careful this could result in a run. Something I obviously don't want to see mostly for the selfish reason I havent got my cash out yet!

 

 

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Don't wait for damages pay-out. Get your money out pronto. The baby who cries loudest gets fed first - threaten bad publicity like I did. Looking back, I think they were very frightened of that. For a financial institution, loss of confidence is a killer. You don't have to do it, just make out that you will if you don't get paid. This was the first time I even mentioned anywhere I had problems with Capita.

 

 

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It makes the whole banking sysytem sound like a ponzi scheme (im sure it is...) Bernie Maddoff was reluctant to give back the capital but encouraged depositers to "invest" by offering high returns.

Our whole financial system is a ponzi scheme, that only "works" as long as things are controlled and balanced carefully over time. The problem is that like any ponzi scheme it is prone to greed and the bubbles that it creates.

 

I usually take a similar type of view to yourself which could be summarised as "don't suspect conspiracy when the same effects could be achieved through incompetence". However, I am becoming increasingly concerned in this particular case. A number of other people I have spoken to are now facing the same issue as me. In fact my folks have had their "instant access" account frozen with absolutely no reason given and no timescale for release of funds.

 

They are also looking to claim damages and getting the FSA on the case.

 

Given we have a fractional reserve banking system we know that the banks don't have all the depositors money. News such as this will make folks justifiably nervous that their accounts could also be frozen for no clear reason. If the bank of ireland aren't careful this could result in a run. Something I obviously don't want to see mostly for the selfish reason I havent got my cash out yet!

 

Still can't find any reference to these problems elsewhere, so either the lid is somehow being kept firmly shut or not all of BoI's customers are having this problem? They must be drawing money out for the weekend, etc?

 

This is the only news I can find re Bank of Ireland.

DUBLIN, Aug 28 (Reuters) - Bank of Ireland (BKIR.I) has raised $1 billion in term funding in Asia in what it said was the first deal of its kind under Ireland's state guarantee for bank liabilities.

 

"This transaction is a result of reverse enquiries following an extensive series of investor meetings held by Bank of Ireland across the Asian region in recent weeks," Ireland's biggest bank said in a statement.

 

The deal was oversubscribed with a final order book of $1.4 billion and with 92 percent of the transaction placed to institutional investors in Asia and a total of 48 investors participating.

 

"Following this deal, Bank of Ireland has now raised 6 billion euros ($8.62 billion) of term funding in the wholesale markets since 1 April 2009," it said. (Reporting by Andras Gergely; Editing by David Holmes) ($1=.6964 Euro)

 

http://www.reuters.com/article/rbssFinanci...28?rpc=401&

 

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Still can't find any reference to these problems elsewhere, so either the lid is somehow being kept firmly shut or not all of BoI's customers are having this problem? They must be drawing money out for the weekend, etc?

As i mentioned previously on this thread it appears that the only accounts affected are growth bond accounts which have matured and been converted in to instant access accounts. So it is possible that there is some administrative cock up that solely affects these accounts and there is not a wider issue.

 

HOWEVER, it is still completely unacceptable to suddenly change the terms of the account from "instant access" to "you will get your money within 10 working days if you write a letter asking to with draw funds".

 

I will send off this now required letter as it seems the most expedient route to getting my cash back. However, I will also be seeking damages and let y'all know how it goes.

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As i mentioned previously on this thread it appears that the only accounts affected are growth bond accounts which have matured and been converted in to instant access accounts. So it is possible that there is some administrative cock up that solely affects these accounts and there is not a wider issue.

This growth bond issue has only just started to mature. It could be that as an early subscriber we are amongst the first to reach maturity date and there will be further instances of this coming to light as other accounts reach maturity?

 

OK fine there may not be a wider solvency issue.

OK fine there may only be a few instances of this issue.

 

HOWEVER it is still outrageous and utterly unacceptable to with hold funds from even a handful of folk. I have made all my financial planning based on the funds being "instant access". My first child is due in a few weeks and need this cash to provide food, clothes, pay bills etc...

 

As I have said previously this further deteriorates my trust in the banks.

Admin cock ups are not acceptable on this scale even it is just for a few folk.

It is causing HUGE amounts of stress at a critical time for us.

 

Physical gold and silver never looked so appealing.

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As i mentioned previously on this thread it appears that the only accounts affected are growth bond accounts which have matured and been converted in to instant access accounts. So it is possible that there is some administrative cock up that solely affects these accounts and there is not a wider issue.

 

HOWEVER, it is still completely unacceptable to suddenly change the terms of the account from "instant access" to "you will get your money within 10 working days if you write a letter asking to with draw funds".

 

I will send off this now required letter as it seems the most expedient route to getting my cash back. However, I will also be seeking damages and let y'all know how it goes.

It is unacceptable and you should pursue it if necessary with the FSA to get your money back.

 

If it is only a problem with the growth bond accounts then it is unlikely to lead to a run on the bank, as one would assume it only affects a relatively small number of customers? This is not good for those of you who can't get your money out, but at least you should not be too concerned that a run is going to happen.

 

Hopefully it will be resolved for you soon, but I would definately pursue it with the FSA as well.

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Thought I'd try and do a search to see if I could come up with any other examples.

 

Found this article about Anglo Irish suspending withdrawals before the end of the fixed term and felt the need to share this classic quote with you...

 

 

Anglo told him: 'Withdrawals are permitted only in the case of an emergency and at our discretion.' Fears over the safety of the bank was not an adequate reason, as it said: 'You have not provided a satisfactory emergency reason for us to action this transfer.'

 

 

lol

 

 

http://www.thisismoney.co.uk/savings-and-b...mp;in_page_id=7

 

I wonder if you'll have to come up with an appropriate reason to get your money and what might be deemed as acceptable.

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Thought I'd try and do a search to see if I could come up with any other examples.

 

Found this article about Anglo Irish suspending withdrawals before the end of the fixed term and felt the need to share this classic quote with you...

 

 

Anglo told him: 'Withdrawals are permitted only in the case of an emergency and at our discretion.' Fears over the safety of the bank was not an adequate reason, as it said: 'You have not provided a satisfactory emergency reason for us to action this transfer.'

 

 

lol

 

 

http://www.thisismoney.co.uk/savings-and-b...mp;in_page_id=7

 

I wonder if you'll have to come up with an appropriate reason to get your money and what might be deemed as acceptable.

 

Interesting article. The bond is actually with the UK Post Office. The article was from Feb, but the point below is similar to what is happening with DS.

 

The other two are Allied Irish and Bank of Ireland, which is behind the UK Post Office savings accounts.

 

These two received a £6.5bn Irish government bailout last week, but remain independent. Anglo was wholly nationalised last month.

 

Anglo has been embroiled in several scandals, including allegations last Wednesday that it had 'cooked the books' to flatter its financial position last year. Authorities in Dublin are investigating.

 

While Allied Irish belongs to the FSCS, giving its UK savers the same protection as other UK banks, Bank of Ireland, like Anglo Irish, is outside the FSCS.

 

This has left the Post Office's 500,000 UK savers in uncertain territory. An unknown number - The Post Office insists it is small - have withdrawn their money amid worries over the safety of their savings. Unlike Anglo, the Post Office is not stopping withdrawals from fixed-rate bonds.

 

But as retired company director Ken Elston, 65, from Birmingham, discovered, the process is not easy. 'You can open the account in the post office in minutes and they'll take your money off you in no time, but when I wanted it back, my post office couldn't help,' he says. 'I was told to ring Bank of Ireland. Then, having done that, I was told to write a letter.'

 

He first asked for his money on January 26, but received the cheque only last Wednesday. 'In these uncertain times, every day matters,' he says.

Publicly, the Post Office insists that not belonging to the UK protection scheme is of little importance to its customers. But privately, executives are believed to be acutely embarrassed that because of its tie-up with an Irish bank it cannot offer its 500,000 customers the same safety enjoyed by savers with other UK banks.

 

http://www.thisismoney.co.uk/savings-and-b...mp;in_page_id=7

 

 

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I'm going to open a Post Office account so I can join the run ;)

 

I am also going to look into opening an account. I admit I felt left out of it when I saw the queues at Northern Rock. It would be nice to play a part in history and would be something one could tell the grandchildren about.

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I suspect you are wrong. Banks that have been given Government guarantees are unlikely to have a run started on them. In fact, Northern Rock became more popular for savers money after it was nationalised.

 

I was under the impression that the banks were bigger than the state i.e. if all depositors and investors withdrew from Ireland's banks the Irish government would not be able to shore up the banks? They'd have to go to the IMF?

 

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I was under the impression that the banks were bigger than the state i.e. if all depositors and investors withdrew from Ireland's banks the Irish government would not be able to shore up the banks? They'd have to go to the IMF?

Nah, for retail savers withdrawing all at the same time (i.e. a run) they'd print the cash at least in the UK where we have control of our own presses. In Ireland, I don't know but I guess they would print via the ECB. They would have to go to the IMF if there was a currency crisis like say in Iceland though, and I am sure there is a possibility of that.

 

The banks don't seem to need retail savers anymore; they have huge BofE / ECB reserves to shore up their capital...

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Any news on this situation doc?

I sent them a letter as they requested stating I want ALL my funds back asap.

Apparently I will have the funds in my other bank account within 10 days now.

By which point I will have missed out on my planned gold buying. Grrrrr.

However, I am also demanding significant compensation for the delay.

FSA and citizens advice are assisting with this if they don't settle amicably.

 

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Is there any news on this?

 

I just checked my references and, with some shock, discovered this:

 

Bank_Of_Ireland.jpg

 

I instantly checked I'd not written anything libellous !!!

Phew !

 

The Bank of Ireland must be pretty annoyed about that :blink::unsure:

 

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