OFT claims victory over cash ISA transfer times

A review published today claims providers of cash ISAs have shortened transfer times significantly since the Office of Fair Trading (OFT) intervened in 2010.

The review, released by the OFT at the start of the cash ISA switching season, found that more than 90% of all cash ISA transfers carried out last year were completed within a new 15-working-days guideline.

Additionally, providers of cash ISAs are now back-dating interest if the transfer is delayed beyond this, and are publishing interest rates on cash ISA statements.

The review found that 93% of cash ISA transfers in 2011 were completed within the new 15 working day guideline.

That initiative was agreed in June 2010 following a super-complaint from Consumer Focus.

All providers of cash ISAs surveyed by the OFT are now publishing the interest rates that apply on cash ISA statements.

Claire Hart, director in the OFT's services, infrastructure and public markets group, said: "People considering switching their cash ISA in the new tax year should have confidence that the process will be quick and effective, and that if things do take longer, they won't lose out financially.

"We welcome the progress made by providers of cash ISAs since the OFT took action in 2010 but we would encourage the industry to consider ways to reduce cash ISA transfer times further."