One Account rates cut

Dualcyclone

Just got a letter stating the latest rate cut to 4.1% to commence 31st December.

And more rate cuts to come by the sounds of it; I'm almost tempted to see if I can get a tracker deal while they last.

Princess_Coupon

Anything new from Watchdog?

musicegbdf

OK just got a letter back with an addmission in it.

Quote
I am sorry you are unhappy with the 1% decrease to your interest rate , subsequent to the Bank of England base decrease of 1.5%. Whilst I understand your disappointment in this matter we must ensure that our business decisions , such as deciding our interest rate , are completed with both our customer and our commercial integrity in mind. As your interest rate is variable the 1% decrease is entirely in accordance with our terms and conditions.

We are also aware that some years ago certain price promises were made to customers around changes to the virgin one account rates following any change to interest rates set by the bank of england , along with comparisons to other lenders in the Essential Guide.These promises do not reflect the mortgage terms and conditions, however were a genuine statement of our intentions at that time, and we can only apologise if , as a result of these communications , you were ever led to believe that the rate would always track the Bank of England Base rate .

Unquote.

So from what they are saying is that I made a mistake by taking their promises made in writing , to be correct, and that they in 25 year agreement can break these promises without me having any recourse !!!!

I have to wait till mid Jan to take this to the FSA. Surely this is the type of mistrust that Gordon Brown has been talking about , and the fact that VO feel they can openly admit this seems like mis selling to me , or am I wrong. Were do we go from here ?? Would be interested to know from those more legally minded than me as what is the next course of action?

DickDastardly_2

I just got another fob-off reply in a similar vein to the one above but mine contained the infuriatingly patronising line:

"Whilst I understand your disappointment in this matter we must ensure our business decisions, such as deciding our interest rate, are completed with both customer and our commercial integrity in mind. Equally we are not obliged to disclose reasons that underpin commercial decisions........."

In other words mind your own business!!:mad: Bloody cheeky bar stewards.

I have written a reply and again await their fresh response.

Poj

More great PR for the RBS management team, from today's Sunday Times:

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5375685.ece

They haven't quite grasped this 'customer relations' malarkey, have they?

Yorkshire_Bred

Poj wrote: »

More great PR for the RBS management team, from today's Sunday Times:

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5375685.ece

They haven't quite grasped this 'customer relations' malarkey, have they?

RBS going back on promises to the Government and Media............now where have I heard this before:rolleyes:

wymondham

Not happy now, they are only paying 0.1% interest to credit accounts - not everyone wins with interest rate drops... :rolleyes:

spence

Hi all,

A new user so apologies for anything daft, I've read through all the posts and need some advice.

I owe 68000 on a home bought for 158000 May '07.
I'm on the 5.1% rate (4.1% from Dec 31st).
First Direct will take me on at a 3.49% tracker (1.49% above base rate for the full term with no collar). The fee for this is £599 + £79 valuation fee, also a £75 early redemption charge by the one account.
I'm happy with the current service but not the behaviour of RBS concerning rate changes.
I suppose what i'm asking is whether you guys think FD is going to continue to out perform the OA in the medium term, or if OA will pull its socks up thus wasting my swap over fees?
Many thanks for any suggestions.

spence

Or any better offers of course.

bunking_off

Depends how quickly you're intending to pay down, I guess.

The valuation / arrangement fees cost c1% of your outstanding value. So if you think you can pay off within the year then primae facie you're definitely better off sticking where you are. Of course that depends on whether the OA rate falls when BoE rates fall further, however.

If "zero day" is a longer term, then it comes down to softer issues. How much do you value ultimate flexibility? How much do you buy into the "paradigm shift" mentality of seeing a large overdraft at the cash point and that changing your whole outlook on life? If you run the OA like a normal or even an offset mortgage, then move. If you see it like a millstone debt, you may be better staying because for me that psychology is far more powerful than the odd half a percent here or there.

Like many, I'm very unhappy at the behaviour of RBS over the last few months, particularly given their longer term performance where they have been an exemplar of customer service. However, there's a danger of "grass is greener" mentality. Basically, all the banks are of Shylock mentality and anyone who thinks that there are any nice fluffy ones out there is fooling themselves.