One Account rates cut

RichieC_2

Hi Everyone.

Just got sent this link from someone in the USA. Even they have the same opinion about RBS.

http://articles.moneycentral.msn.com/Investing/Extra/whos-the-worlds-worst-banker.aspx

Happy Reading.

DRo_2

The BBC has a transcript of a Radio 4 "Inside Money" programme from 18 Aug 2001:

http://news.bbc.co.uk/hi/english/static/audio_video/programmes/inside_money/transcripts/investors.txt

James Duffell, the head of public relations for Virgin One said about interest rates for the Virgin One account:

"We guarantee that they will always follow the Bank of England interest rate when they come down. We put them down the day that the Bank of England announces its reduction and the interest then calculated from the next day at the new rate."

ozzie65

MSE_Dan wrote: »

Hi folks,

We have been following this thread and have been contemplating what can be done. Can i just confirm that this is a correct summary:

A letter from 2001 said RBS would pass on all base rate cuts to its mortgage customers
In 2003, RBS bought the One Account.
Following October 2008's base rate cut of 0.5% points, it cut the rate by 0.5% points
Following November 2008's base rate cut of 1.5% points, it cut the rate by 1% points
Following December 2008's base rate cut of 1% points, it cut the rate by 1% points

It's perhaps worth highlighting that each and every OA interest rate change letter I received between 4 August 2004 (when I opened the account) and 7 February 2008 used the same phrase:

"The Bank of England has today announced a x.xx% [increase/decrease] in the base rate. As a result of this change, all One Account interest rates will [increase/decrease] by the same amount from [date]"

The date for the increase or decrease of the OA rate was almost always the same date as the BOE rate change date. This covers, if I count correctly, a total of 6 rate increases and 3 rate decreases over three and a half years. Always the lowest tier OA rate remained exactly 1.1% above the BOE base rate. If not in name a base rate tracker, than certainly in practice, I feel.

Since May of this year the siutation became as described in detail by many other forum members - erratic OA rate changes without evidence or explanation of the underlying algorithm, resulting in the current situation where the lowest OA rate tier is 2.1% above BOE base rate, a full 1% more than account holders could have reasonably expected, based on the clear and simple policy until February of this year.

With many others, I am still worried about where this is heading without continued serious pressure and publicity. And even with ...

Brice

DRo wrote: »

The BBC has a transcript of a Radio 4 "Inside Money" programme from 18 Aug 2001:

http://news.bbc.co.uk/hi/english/static/audio_video/programmes/inside_money/transcripts/investors.txt

James Duffell, the head of public relations for Virgin One said about interest rates for the Virgin One account:

"We guarantee that they will always follow the Bank of England interest rate when they come down. We put them down the day that the Bank of England announces its reduction and the interest then calculated from the next day at the new rate."

That's a good one!

I am wondering, when a company "guarantee" something in the media and "promise" the same thing in a letter to consumers, are they not obliged to do this thing, even so it is not in the contract?

If it is the case Oneaccount must reduce the rate by 1% and owe us the extra we paid since they have started not following the BOE rate or pass the rate (or part of it) only the next month.

Is there anyone in this forum who knows well enough the law to help us on that?

Juno_Moneta

You would need a class action to make any legal challenge economical.
Together, the promise letter and the interview transcript appear to be a good basis for someone to look into the possibility. I think i read somewhere about a legal firm working on an hbos claim. Maybe someone can dig up their details and present them with the One evidence? At least we'd know if it had any weight...

bricksh

oldjabez wrote: »

Dan,

RBS have not passed on the full interest rate cuts to their NatWest Offset customers.

2nd November .50%
30th November 1.00%
31st December .75%

By my calculation thats 0.75% missing and what they do give us is always one month after the event.

More barefaced lies from RBS.

Likewise RBS offset, with the same reductions as NatWest offset

I had considered RBS/Natwest offsets as very similar to One Account but the latest intrest rate cuts seems to show that RBS differentiate.

bunking_off

oldjabez wrote: »

July 08 I think

Correct, 1st July 2008. It was the 10th April 0.25% reduction in BoE from 5.25% to 5% that wasn't passed on either.

Although I'm sympathetic, I'm not sure there's as strong a case for either the RBS or Natwest Offsets, or for the Natwest One account : the "smoking gun" of the letter sent by the One Account which trumpeted how they were different and passed on BoE reductions was about the OA...not sure that there's a similar smoking gun for the other products.

malocao

yus786 wrote: »

There was also an increase of 0.5% back in the summer (can't remember the month) - but that just came from no where and was blamed on the 'climate'

Can someone please confirm the month?

Just to pull together all the changes since the start of 2008:

1. Base rate -0.25% in Feb, OA -0.25% shortly after
2. Base rate -0.25% in Apr, but OA didn't move
3. OA +0.25% in Jul, although base rate didn't move
4. Base rate -0.5% on 8th Oct, OA -0.5% on 3rd Nov
5. Base rate -1.5% on 6th Nov, OA only -1.0% (keeping 0.5%) on 1st Dec
6. Base rate -1.0% on 4th Dec, OA -1.0% on 31st Dec

Regards

malocao

malocao wrote: »

Just to pull together all the changes since the start of 2008:

1. Base rate -0.25% in Feb, OA -0.25% shortly after
2. Base rate -0.25% in Apr, but OA didn't move
3. OA +0.25% in Jul, although base rate didn't move
4. Base rate -0.5% on 8th Oct, OA -0.5% on 3rd Nov
5. Base rate -1.5% on 6th Nov, OA only -1.0% (keeping 0.5%) on 1st Dec
6. Base rate -1.0% on 4th Dec, OA -1.0% on 31st Dec

Regards

I meant to add ... The April non-change & July change were probably driven by LIBOR going well above BoE base rate -- in which case OA wasn't profiteering at that stage.

But if you had a promise from OA to follow base rates, then their actions in April & July may still be grounds for complaint (in addition to November).

serendipity101

Those of you who have not yet joined DECAMP but may feel they could contribute to this then please join through Facebook.

This is a copy of the message I have just received:

'a message to the members of Declaration by Enlightened Customers Against Mortgage Profiteering (DECAMP.)

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Subject: BBC Watchdog

Hi all

there's been a very interesting development in the last 24 hours: I got a call from BBC 'Watchdog', to say that they're looking to do an investigation into RBS's recent rate policy on The One Account. One of the main things they need at this stage is to chat to One Account customers whose finances are being particularly severely affected at the moment by RBS's refusal to stick to their longstanding commitments / promises on OA interest rates.

If this applies to you - or if you know someone else in this position - then please free to get in touch with me (in strict confidence of course) and I'll get things arranged with the BBC. To be clear, you won't be committing yourself to appear on the telly at this stage - at the moment they're putting together all the background research. Though of course if you did happen to fancy a bit of prime time exposure in a few weeks time then this could be your big chance!

However, you look at it, the fact that Watchdog are getting involved has to be great news for 'decamp'. Once again I would urge you to pass on details of the campaign to anyone else you think might like to give us their support.

regards '