Does IF owe me compensation?

Q In mid-March I applied online for a mini-cash Isa with Intelligent Finance (IF), Halifax's internet bank, aiming to invest for the financial year 2003/04. I was sent a 'welcome pack' that I completed and returned well before the end of March. But IF accepted my application for 2004/05, thus depriving me of the opportunity of a tax-free investment for 2003/04. No warning was given with the welcome pack that IF would not be able to process the application for the current financial year. Apart from getting my money back and reinvesting in another scheme, is there any way I can seek redress/compensation from IF?

HG

A Despite the fact that IF has (as you point out) deprived you of a tax-free investment for the previous financial year, I would bet my mortgage that it will plead 'unexpected volume of response' or some such as to why it didn't open your account in time.

The financial compensation process aims to redress any losses savers and investors make through no fault of their own, but your loss in this case is likely to be minimal. IF's mini-cash Isa has a current monthly interest rate of 4.51%, and assuming you were making the maximum ?3,000 deposit, the most you could have lost is ?135.30. This presupposes your money was in the account for a full month, but you indicate only that your application was with IF before the end of March. If we're looking at your money making it into the Isa for only a week, your loss is more likely to total around ?35.

I agree that such a sum is still a loss, and understand your disappointment at having lost the opportunity to invest tax-free for 2003/04, but suspect the most you'll be able to squeeze out of IF is around ?25 for the delay.