One Account rates cut

natwestripoff

sparkey1 wrote: »

Natwestripoff, I guess your working on the basis that if your balance is a £1 they will still be credit insured against your full facility.

Hi Sparkey - correct! and they have to manage the account etc etc.

natwestripoff

bunking_off wrote: »

So I'm not in the financial industry, but is that really the case?

As an analogy, I work in telecoms. We don't build our networks so that all customers can be on the phone at any one time...we have complex models and dimension against statistical norms, with headroom for extra-ordinary events built in. I'd sort of imagined that (& similar for banks offering overdraft facilities) RBS scaled their borrowing requirements using similar statistical techniques.

Hi Bunking off (and whats wrong with that?) - the problem for RBS is that you may borrow the full amount of your facility at anytime. So they have to allocate on their books the full mortgage facility (not calculate the likelyhood you might). When money was plentiful this didnt matter but now it is tying up valuable funding that could actually be in use and earning income.

For example if I have a £100,000 facility but use only £1 of it, the full amount (£100,000) is still fully accounted for as a lending liability (and yet it is not being used). So the bank are in effect losing the profit on £99,999 which they could lend in full to someone else (at current margins thats about £2,000/year).

That is why overdraft facilities have always cost more and this is why they are ringing you up to try and reduce the facilities you have.

Its pretty awkward and complicated but I hope this helps a little! Dont too much today! Chris.

karanda

red789 wrote: »

It seems like there is one from the last round of non-rate cuts - may as well use the same one.

http://petitions.number10.gov.uk/RBSOneAccount/

Please don't forget to sign this online petition - and to pass this petition site on to other RBS One Account holders!

sparky99_2

It's obvious the FSA are in cahoots with the top bankers you only have to read Paul Moores testimony to the select committee to know they all play golf together and give each other a scratch on the back when needed.
We are paying through our mortgage repayments the cost of their incompetance which is outrageous considering the extent of the bail out they have received already from the taxpayer ie.US.
We need to kick up a fuss big enough to have these top bankers, FSA & The Prime Minister removed and install successfull business leaders who have been to the school of hard knocks otherwise we will bounce from one calamity to another.

BRING BACK THE BRANSTON!

natwestripoff

Yes you are probably right Sparky.

My fear is that while we all have a good case the Financial ombudsmen is under great pressure politically not to cause any further stress to the banking system. They would argue that to support you/me/us in this matter is pointless if the bank no longer exists to pay us compensation.

I believe the only way to win this argument will be in the courts (which are not subject to political pressure) but who can afford to do this? For one mortgage it is not cost effective.

All pretty disparaging.

natwestripoff

I have just noticed that as of today there have been 94,471 viewings of this thread and on the 9th Feb (just six days ago) I noted there had been 88,500. Thats an increase of almost 6,000! That is remarkable, I wonder just how many people are effected by this?

It just goes goes to show the depth of dispair and anger felt by people about the actions of RBS.

munkyman77

I have just contacted the One account via their live link to check if any decison had been made whether to pass on any of the most recent (Feb) 0.5% rate cut. I was told that the One account rates will not be reducing. Has anyone else been told this?

natwestripoff

Hi Munkyman - this seems to be the news that is filtering through - remarkable isn't it? Having said that they are paying huge bonuses and that does have to come form somewhere. It is so hard to believe such a stalwart of the business community, such an important company, a bank no less can be so cynical, so blase and care-less. I expect when the champagne flows the last laugh is on us.

Chris.

Yorkshire_Bred

just a little bump for the Facebook group!!

http://www.decampaign.org/

karanda

Just to remind us all about the duplicity of RBS, I quote from one of the many letters I have received from them over the past 10 years. This one is dated 10 May 2001.

"This is the third base rate reduction in the past few months. And with experts predicting even more reductions this year, our promise is that we'll follow the base rate and pass the benefits of interest rate cuts on to our customers straightaway. This is something that few other lenders offer - and when you think the top five lenders made an extra £20million out of their customers by delaying their interest rate cuts in April - it's clear that you're better off with a One Account".

Signed
Jayne-Anne Gadhia
Managing Director

Words fail me.