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The banks' new account dodge
quinnect
Posts: 11 Forumite
I have discovered recently that 4 banks/building socs had dropped the interest rates on the e accounts I had to 0.5% or less and at the same time initiated identical new accounts with much higher interest rates which they didn't deign to tell me about. I know they have always done this but it now seems to be endemic. What's more 3 of the 4 then make it difficult simply to transfer all the money from the old account and close it (Northern Rock's site actually makes this easy). I complained to one bank, Abbey, who said contemptuaously in a letter that they were under no legal obligation to tell their customers and it was up to the customers to watch out. I regard this as theft. Not only are the banks stealing from us as taxpayers but now they are stealing form us as savers. I think everyone should write (or email via their website) to the FSA and demand they stop this practice. There is no excuse for it and it is low hanging fruit if they want to be taken seriously as a regulator. The FSA should ask the banks how much the savers who did not switch have lost out. Go - complain.
Are banks theiving from us 11 votes
Banks are only doing their job here
36%
4 votes
Banks are stealing our money
63%
7 votes
0
Comments
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The hopeless, NuLabour crony dominated FSA are quite clueless on the *huge* margins that the banks are enjoying. It's not for nothing that Barclays share has risen 5-fold, the banks are generating massive cash incomes, and they have £200B from QE sitting on reserve at the BOE.0
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And your point is.....? This has been going on for years. Keep on top of your finances using sites like this!0
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And also look at the Terms and Conditions each time you open an account. I suspect you will find there information on how they will notify you of a change in rate. It will probably include a mention on their website and an advert in one of the national dailies. I'm not saying it's morally right to do what they are doing; but they're not doing anything unlawful. As G_M says, the onus is really on you to keep on top of it. Anyway, you'll be glad to learn that for many accounts, the FSA (rather unfairly slagged off by amcluesent) are now requiring that they do send you notification.
See here for full details.Advance notification of changes
Banks and building societies must provide advance notice of changes to key terms and conditions. For current and instant access accounts, they will have to give customers at least two months’ prior notice of any disadvantageous interest rate changes (except if the account explicitly ‘tracks’ a reference rate; e.g. 2% above the Bank of England Base Rate or the change is an explicit part of the contract)."The trouble with quotations on the Internet is that you never know whether they are genuine" - Charles Dickens0 -
Hungerdunger wrote:
... the FSA (rather unfairly slagged off by amcluesent)...
Unfairly slagged off?
The FSA is amongst the most comically inept and fatally flawed institutions in this country - it almost rivals the monarchy in its absurdity!
Banks exist to make money for their shareholders. They will obviously use any means and any excuse to shaft customers at every opportunity.
I think sites such as this are invaluable in returning (limited) power to the consumer - but I still make it my mission to inconvenience banks at every turn.
For the avoidance of doubt: I work for an IFA.0 -
The new rules that have just come in should mitigate this.I have discovered recently that 4 banks/building socs had dropped the interest rates on the e accounts I had to 0.5% or less and at the same time initiated identical new accounts with much higher interest rates which they didn't deign to tell me about.
Leave. Verbosely. And tell them why. If you have sufficient funds with them that they consider to be substantal, then they may change. If all you have with them is 500 quid, they're less likely to listen to you.I know they have always done this but it now seems to be endemic. What's more 3 of the 4 then make it difficult simply to transfer all the money from the old account and close it
One bank I will not tolerate. After attempting to transfer an ISA to them II complained to one bank, Abbey,
a) Couldn't complete the online aplication, however I got sufficiently far enough with it for them to send me (over 3 weeks) stuff to
b) Set up online banking. 75% of the links wouldn't work
c) They didn't bother sending the transfer forms with the letter saying 'fill in the transfer forms.' Common problem apparently, according to the bloke I told to close everything....
d) which happened, eventually, 3 weeks later.
Rubbish. Your savings increase by only 0.1% rather than 0.5%. Your savings aren't decreasing, just not increasing by as much as you'd like. (I'm ignoring [in|de]flation.)I regard this as theft.Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0
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