One Account rates cut

Doh

searlech wrote: »

I am also a OneAccount holder and am very disappointed about the rate drop not being fully past on. I have written to my local MP and RBS are not delivering on their public statement to pass on the rate cut to customers.

I would encourage everyone to raise this with their MP. The site http://www.writetothem.com/ will let you find and send a message to your MP.

can someone draft up a suitable letter we can use? i'm not to good at this sort of thing, i will happily send it to my MP

woodam1963

RBS faces backlash over refusal to give One customers full rate cuts

• Rupert Jones
• The Guardian, Thursday December 4 2008
• Article history

One of Royal Bank of Scotland's mortgage divisions has come under fire after refusing to pass on last month's interest rate cut in full, despite having "promised" to follow Bank of England base rate moves.
The decision has prompted an outcry among customers.
Holders of mortgages in the One account, formerly a joint venture with Sir Richard Branson's Virgin empire but now 100% owned by RBS, are worried they will also not see the full benefit of today's likely rate cut. Dozens of people have joined a Facebook protest group including Rowan Gormley, the former boss of Virgin Direct who developed the One account concept.
RBS and NatWest last month said standard variable rate (SVR) mortgages would be cut by the "full 1.5%" after the Bank of England base rate was cut from 4.5% to 3% on November 6. But One account customers have been told they are only getting a one percentage point cut.
Angry customers point out the gap between the base rate and One account rate has increased by a percentage point in the past year. Against a backdrop of falling interest rates, they were hit with a quarter-point rise in July. The Guardian has obtained a copy of a letter sent out by the division in May 2001, which states: "Our promise is that we'll follow the base rate and pass the benefits of interest rate cuts on to our customers straightaway."
Tony Wood, the former marketing director of Virgin Direct who is a One account customer, said RBS's behaviour was "a betrayal of all the principles we built the One account on in the first place". He added: "It's interesting to see how, as a majority taxpayer-owned business, they can even contemplate going back on such clear-cut promises, which was one of the main reasons for customers signing up in the first place. It makes particularly interesting reading in the context of the Financial Services Authority's 'treating customers fairly' rules."
Dozens of disgruntled mortgage holders have joined the Facebook group, said Wood, who now works as a brand and communications consultant.
RBS's decision to treat One account customers differently is potentially embarrassing because, when the division was half-owned by Virgin it made great play of how it passed on every rate cut to customers in full within 24 hours of each Bank of England announcement. In 1999, the then managing director of Virgin One, as it was called, said: "We have passed on every rate cut in full on the same day because that is how our customers expect to be treated - fairly and honestly."
RBS, which bought out Branson's stake in 2001, said: "The One account mortgage is a variable rate product and not linked to base rate or the RBS and NatWest SVR. The decision to cut flexible rates by one percentage point follows consideration of a range of factors such as the wider market environment, including the sustained increase in the cost of funding variable rate mortgages."
A spokeswoman said One account holders had benefited from a half-point cut effective last month. "The cumulative effect means this mortgage remains competitive. This movement is in line with the product terms and conditions," she said.

lrr_2

Great result getting it in the Guardian!

Lets see if we have to go through all this again when the rates are probably cut again today.

Yorkshire_Bred

Thanks for this Tony, I will be forwarding a copy to my MP in support of my complaint against RBS.

It seems Rupert Jones will be kept busy in the coming months with articles featuring negative reports about RBS

Once again, thanks for your valuable input!

Insider_knowledge

Hi, I used to work for RBS in Edinburgh headquarters, I won't say what exactly my role was, but I worked on RBSG products, so I would work across various products, these included RBS, Natwest, Ulster bank (north), Ulster bank (south), One Account, Adam and co, Coutts and co and sometimes even Bank of china (they have a share holding). The list is very long, however, One account was considered to be very much inside RBS, it was considered part of the business, but with a different "Brand". Other brands such as Lombard and Direct line and Mint were considered to be in the group but separate. Any assertion that One account is not totally an RBS product is a lie.
As we now own 58% of RBSG, and they have received over 20 billion in our cash, they should be forced to pass this cut on as they said they would "In full and promptly". I have written to my MP (Labour) and to the minister to ask why they are being allowed to lie to the government in this way.
The One account is not a BOE tracker, most mortgages are not BOE or Stock market trackers, it is irrelevant whether it tracks or not, the cut should be taken off the output of the algorithm they use to calculate the rate...

Insider_knowledge

I just sent the following to my Labour MP,
Hopefully with enough pressure something might happen,
I am a mortgage holder with RBS One account, I am currently well above
my target, but RBS are refusing to pass on interest rate cuts, this
means that currently on my £170,000 mortgage I am paying in excess of£800 in interest alone, and that's a low rate as I have a 65% loan to value.
Since we now own 58% of RBS and they state they would pass on all rate
cuts "in full and promptly" can the Labour party please raise this
issue.
Gordon Brown has effectively mortgaged my families future with massive
borrowing, to fund buying out these banks, yet they are still not
helping their customers. My husband works and earns around £1,600 after
tax per month, I lost my job 2 month ago, I was a high earner. RBS
claim the One account is not an RBS product and not a tracker, well as
an ex RBS employee, I can state categorically that The One account is
an RBS product and most UK mortgages are not trackers, the rate cut
should still be passed on.
I am now paying only the interest on my mortgage from my savings, hard
earned savings, which will last a few more months, then my family
including 2 children will effectively be in arrears, and may lose our
home. If the One Account did pass on this rate cut (2%) and today's
anticipated 1% we could pay the interest in full for more than 6 months from savings and I may have found work either here or abroad.
I paid £46,000 in tax last year alone, I shudder to think how much I
have paid in the last 5 years, RBS now have a large cut of my tax in
their coffers. I pay all my bills on time and have no other debts, am I
being helped for being so prudent in my finances, no, by allowing The
One account to do this, swindling its customers, I will probably end up
homeless, I will lose all my savings, my childrens future education
will be curtailed and I will be claiming off the state.
So much for social justice, the Labour party , for whom I voted,
believe in socialism for the banks and fascism for its customers.
The Guardian are carrying a story on this today, but our MP's
appear to be "negotiating" with a company which the people, the state,
owns a massive majority share holding. Stop negotiating and do
something before people like me and my family go under.

Yours sincerely,

Juno_Moneta

The Guardian article raises the profile of this issue considerably.
It is a respected media source and will be noticed by RBS.

I hope everyone here forwards a link to the article and also this 40000+ views thread to as many relevant people and organisations as possible.

It will be yesterdays news tomorrow, so make One day today!!!

Insider_knowledge

Can someone tell my the facebook group name for the One Account holders?

Mattfoo

Another cut today probably ...
Here we go again ! I cant see OA passing this one on. I hope they do however for all of your efforts in getting the 1% cut last time. Save the hassle and time and move mortgages if you can. Your life becomes a bit easier ! :j

Insider_knowledge

Did they cut the rate by 1%, I appear to be paying the same rate I was paying in January, I have also received no indication that that has changed? I appear to be paying 6.20%

If they did pass it on, then its a precedent and they would surely be obliged to pass on all others?

Anyone know the Facebook page name...I want to join, but am a little scared that complaining with adversely affect my account, has anyone had issues after complaining to One Account?