MSE News: Northern Rock's fixed cash Isa trap

I was well aware of these terms before I transfered to NR to a stepped ISA, so I have already put the full annual allowance in there now :j

What is a shame is that in following years of that ISA you will not be able to deposit more, most likely a ploy for NR to pay less interest out!

KTF wrote: »

Why pick on NR? Their fixed rate products have more flexibility than other ones listed in the comparison table.

Completely agree with this. One of the better providers. Also efficient and informative regarding any changes to conditions and options, end of term rates and new options sent out in advance and well documented prior to maturation etc. Poor judgement to pick on NR specifically.

JamesU

Listen to this:

I was caught out by the ISA sting a few years back which was probably my own fault - nobody said anything about not being able to pay in, but I didn't read the small print so that was that.

During the last tax year, I went to the staff branch and asked why NR had not told me that the issue was closing. They said that I should have been told. So I said to them that I had £1k to deposit as long as they can guarantee that NR will write to me to give me my 30-day depositing grace. The sales !!! told me face-to-face that I would definitely be written to, so I opened the ISA.

A while passed, and I had saved enough to deposit about £3k or more I think. When I asked about putting it in, they said "Oh you can't as the issue is closed"...I told them it was ridiculous and that I was guaranteed to be told so that I could pay in what I had. They said "No, we don't write to customers"!!!

So anyway, I was speaking to the sales !!! over the phone later on about a different issue (i.e. they didn't send a requested ISA statement after over a month - when promised), and I happened to ask if she could tell from my records who had sold me the ISA. The !!! said "Me why???" and got really huffy when I asked about not being written to (she said "It's a postal issue, it must be our Savings Postal Department" - the same reason given, incidentally, as to why my statement hadn't turned up!!!)

I filed a complaint which included a few other things (such as that person's rudeness etc), and it was upheld. An apology was given. I was told in the final response that it was not NR policy to communicate with customers when an issue is withdrawn (they're happy to communicate ad infinitum when sending out mailshots for accounts I closed years ago!!) and the reason being that it was inefficient and time-consuming (or words to that effect).

I thought that was ridiculous. All NR need to do is put a flag on each customer's account upon opening an FRISA with a preferred method of communication (i.e. email if it's that bad to post it out...) and that flag is raised as soon as Marketing or whoever pulls the issue. From there, either the system or staff can communicate to each customer on that list (again, all system-flagged) and there you have it: happy customers, and more deposits for NR!!!!!

Anyway, I'd requested that they waive my 60-day penalty charge for withdrawing the money (would have worked out at about £80) and they told me to !!!!!! off basically, saying I could go to the Ombudsman if I wanted...which I do!

NR have got this internal vision where customers come first, but clearly they don't always (there are some really good ppl at NR don't get me wrong). I've told them that they have done both me and themselves out of money and totally alienated their customers - if they think I'll be recommending their products they've got another thing coming...

We all work bloody hard for our money, and an ISA is supposed to give savers some relief...yeah right!!