One Account rates cut

Yorkshire_Bred

I have started a thread over on the forums on The Daily Mail money forums under Banks saving and investing http://www.mailonsunday.co.uk/home/frame-money.html

add your complaints there as well as here if you wish, the more that know about the shameful behavior of RBS the better!

Also... what about doing a mass mailing to GMTV where ML appears regularly?

Gorgeous_George

The OneAccount has ever been particularly attractive. It has enjoyed great advertising.

Make a commitment to can the account for something better and let them do whatever they wish. You will know that you will have the last laugh.

GG

Poj

RBS Press Release the day after the BoE cut:
NatWest and RBS cut its Standard Variable Rate by a full 1.5 per cent

7th November 2008:

NatWest and RBS today announce that its Standard Variable Rate mortgages will be cut by 1.50 per cent from 6.69 per cent to 5.19 per cent. The reduction follows a review following the Bank of England's Monetary Policy Committee (MPC) decision to cut rates by 1.50 per cent yesterday and today's movement in LIBOR. The rate change is effective from 1 December 2008 for existing customers.
That review didn't take 3 weeks eh?
The 3m LIBOR on 7/11 was 4.49, just down from 5.56. The high Libor rate was the reason they didn't pass on the rate cut on the 6th, but as it fell overnight they could no longer use it as an excuse. Today it is 3.94.
So what possible excuse can they have for not passing on the full 1.5% now?

I am more than a tad miffed.

Yorkshire_Bred

http://www.independent.co.uk/news/business/news/new-rbs-chief-pledges-groupwide-shakeup-991035.html

"Royal Bank of Scotland's new chief executive today said the bank would remain a global business, but pledged a "thorough" review that will see costs targeted and divisions potentially sold off."

Mr Hester said underperforming parts of the business would be looked at under a group-wide shake-up.

Mr Hester said RBS was aiming to pay back the State's £5bn preference share stake in time to allow a dividend for wider investors for the 2010 financial year.

Is the writing on the wall for RBS and the OA?

taurusgb

Yorkshire_Bred wrote: »

http://www.independent.co.uk/news/business/news/new-rbs-chief-pledges-groupwide-shakeup-991035.html

"Royal Bank of Scotland's new chief executive today said the bank would remain a global business, but pledged a "thorough" review that will see costs targeted and divisions potentially sold off."

Mr Hester said underperforming parts of the business would be looked at under a group-wide shake-up.

Mr Hester said RBS was aiming to pay back the State's £5bn preference share stake in time to allow a dividend for wider investors for the 2010 financial year.

Is the writing on the wall for RBS and the OA?

I wonder about this myself - what would their options be? to sell it on? to insist we moved onto an "ordinary" mortgage? - could they just close it? if so what would happen to customers?

Yorkshire_Bred

taurusgb wrote: »

I wonder about this myself - what would their options be? to sell it on? to insist we moved onto an "ordinary" mortgage? - could they just close it? if so what would happen to customers?

To raise funds they would have to sell the complete product or reduce their mortgage book like NR, maybe Mr Branson would fancy another try at a return to the UK banking industry?

tajima1

taurusgb wrote: »

I wonder about this myself - what would their options be? to sell it on? to insist we moved onto an "ordinary" mortgage? - could they just close it? if so what would happen to customers?

This product is clearly on the way out. I can only guess at what strategy lies behind their lack of an announcement. I would take the ordinary SVR mortgage if I was offered it. Only because it would offer some degree of certainty that they would have to tow the Govt line on future cuts with a standard product and only for as long as it took me to bail out of RBS altogether and forever! The lack of information must be a deliberate and considered ploy of some kind. These people are despicable but they are not (contrary to popular belief) completely stupid. Its hardly a customer care policy that wins friends and influences people, so therefore there must be a darker intent. Surely they must finally show their cards tomorrow?

chickenlegz

Not wanting to get anyones hopes up , but doesnt this snippet mean the "one account" is linked to their Standard variable rate ?

The One account secures award for third year running

15.4.05: The One account offers a current account mortgage and a flexible mortgage option. The flexible mortgage option currently has a 12-month discount running on its standard variable rate.

full text here

http://www.oneaccount.com/onev3/press/press-latest-news-2.shtml

I apologise if this is old news

Yorkshire_Bred

After doing various searches and reading into the whole situation Virgin and their Australian partner AMP sold out to RBS but retained the rights of the OA outside of the UK.

was just reading reviews of their product in Australia......

October 31st, 2008 Pros: Offset Account Cons: Lots of interest rate hikes to cover Virgins extra cost of borrowing due to Sub Prime issues. No interest drop at all since government dropped interest rates by 1% Overall: Took out loan in 2006 and received good customer service. Offset account useful, however interest rates have risen above expectations. Virgin citing their increased cost of borrowing due to sub prime pressures. However interest rate has not dropped a single fraction of the 1% awarded by the Central Bank on the last interest rate drop. Will be shopping around if an interest rate drop does not materialise in the next few days. Reviewer: Unknown

Sound familiar?

malocao

Attn: Chief Financial Officer
The One Account
Woodland Place
Pinetrees Road
Norwich
NR7 9EJ

Dear Sir,

Although market interest rates have fallen sharply in the last month, the rate on my mortgage has not moved. I am writing to complain formally about this unfair treatment.

The facts are these:
· Your interest rate has generally been 25-75 basis points above 3-month LIBOR, but as of today it is more than 210 bps above LIBOR.
· When you last changed your rate, on 2nd November, 3-month LIBOR was 5.84%. Since then LIBOR has fallen by almost 200 bps, but you have not passed on any of it.
· RBS Group announced on 7th November that it would pass on the base rate cut of 150 bps in full, but you have not taken any action on that.

These facts are plain and they only bear one interpretation. Your current interest rate is not treating your customers fairly, and you are therefore in breach of FSA regulations.

I therefore expect to hear from you by return, confirming that your rate is reducing immediately by at least 150 bps.