Aviva refused to take my cash . . . or hand it back
Ms J.J. writes: I ventured on to Aviva’s website on March 20 to open an Isa – but what a calamity that turned out to be. Three days later I received an email saying I had failed Aviva’s security checks on my identity and bank details. But, unknown to me, Aviva had already taken my money. This was despite the email stating that Aviva could not accept payments before security checks were successful. Now Aviva will not return my money without carrying out the same security checks that I have already failed. THE timing of this is significant, because you applied to invest £20,000 before the end of the tax year on April 5.
If Aviva accepted your money and opened the Isa, that was fine. If it turned you down but gave you back the money promptly, you could have applied elsewhere for a new Isa.
But if Aviva turned you down for an Isa, but held on to your cash, you would have lost the opportunity to use your tax-free Isa allowance for 2017-18.
At first, it seemed the problem had arisen because you had paid such a large sum with your bank debit card. Aviva’s systems were not supposed to be able to take this, but your payment went through anyway. Aviva told me this was an error and it has apologised to you.
Further investigation brought to light a more basic issue. At the time you applied to make the investment you were moving house. You gave Aviva your new address but not a single record was found that would confirm you were living there.
This threw up a red flag under anti-money laundering rules that all investment firms must follow when they check identities.
After finding that you were still moving home in March, Aviva carried out its checks using your old address. Those checks have been successful and Aviva has offered to set up your Isa, backdated to March, so you do not lose a year’s tax-free allowance.
You have agreed and have left your £20,000 with Aviva.
A spokesperson told me: ‘We are sorry for the issues in setting up Ms J’s Isa. We have successfully confirmed her identity and have set up the Isa, backdated to when we received the money. We have also paid her £150 as a gesture of goodwill.’
Excellent outcome.