One Account rates cut

musicegbdf

wymondham wrote: »

Not wanting to rock the boat, but the One Account has to cater for lots of different peoples situations. I personaly am pleased the One Account is not passing on the reduced rate any further as the interest they pay has gone down considerably making me worse off....

I don't wish to be rude , but are you serious ? You cannot be holding a credit balance in the OA of more than a small amount otherwise you would be losing big time already. The OA was never designed to be saving account and that is why they have no excuse to hold rates up to benefit savers. We all know why the rates are up , it is to cover the losses they made by their incompetence, it not to protect savers.
The big and major issue is this. The government is printing money it does not have , so this will result in further devaluation of the pound in your pocket, this will lead to inflation and rates going up. They are being held down at the moment which is artificial, so in 18 months time when the rates start go flying up , what will happen then . Will OA cut the margin back to where it was in the past ? I bet not , they will increase straight away. .. For me , my personal circumstances mean I can't change for a few months , but if everything goes to plan I will be looking for the longest fixed rate I can get come the summer. It's a shame because the OA is a great product that is being badly managed right now.

malocao

Hello all,

Referring back a few days, to the discussion of what evidence the Financial Ombudsman Service needs to see:
* If you're complaining about failure to track base rate, then I guess you need to be in receipt of that promise
* If you're complaining about failure to treat you the customer fairly (TCF), then I expect the tracking promise should not be needed - though of course it would be a bonus if you can produce it

I am complaining about TCF failure - I'm too recent a customer to have had a tracking promise. My case is that RBS has unilaterally repriced the contract against me - i.e. they have raised their interest margin over LIBOR by approx 1.0% in the last few months - and this clearly breaches TCF principles, regardless of what discretion is written into the contract terms.

Regards

karanda

Taken from The Times Today:
"Virgin aims to become bank.

Sir Richard Branson has given his clearest hint yet that Virgin will become a high street bank within two years. He said that Virgin would return to the mortgage market and obtain a banking licence, possibly through an acquisition.

He believes that the lack of trust in existing banks and lenders will give Virgin an opportunity to build market share quickly. He said "we are going to get back into the morgage busienss and we will become a bank either by acquisition or by getting our own bankign licence. You will see us become a consumer bank within the next couple of years"

It is understood that Virgin is lobbying the government to break up RBS, now 70 percent state-owned, to bring more competition into banking. If parts of RBS were put up for sale, Virgin would use this to gain a the foothold that it needs in the hight street".

So there may be some justice in this world, after all!

wymondham

musicegbdf wrote: »

I don't wish to be rude , but are you serious ? You cannot be holding a credit balance in the OA of more than a small amount otherwise you would be losing big time already. The OA was never designed to be saving account and that is why they have no excuse to hold rates up to benefit savers. We all know why the rates are up , it is to cover the losses they made by their incompetence, it not to protect savers.
The big and major issue is this. The government is printing money it does not have , so this will result in further devaluation of the pound in your pocket, this will lead to inflation and rates going up. They are being held down at the moment which is artificial, so in 18 months time when the rates start go flying up , what will happen then . Will OA cut the margin back to where it was in the past ? I bet not , they will increase straight away. .. For me , my personal circumstances mean I can't change for a few months , but if everything goes to plan I will be looking for the longest fixed rate I can get come the summer. It's a shame because the OA is a great product that is being badly managed right now.

Just trying balance out the argument - this thread is very one sided. Of course I don't use it as a savings account, but with the reduction in interest rates it has had an effect.

AnnoyedatOnaccount

Hi wymondham, what is the benefit to you having a high interest rate on the oneaccount when you owe money on it? If the interest rate is reduced then you can pay off the amount you owe quicker. A high interest rate means you would need to pay more back. The oneaccount is - as you said, not suitable as a savings account. Why on earth would you want it to have a high interest rate on the money you owe?

musicegbdf

wymondham wrote: »

Just trying balance out the argument - this thread is very one sided. Of course I don't use it as a savings account, but with the reduction in interest rates it has had an effect.

The main issue is the mis selling of the product and clearly admitted broken promises.If they are allowed to get away with it now , what will they do when the market swings back the other way, as we all know it will.
I am all for a balanced discussion , but as the OA is not designed as a savings account the discussion will be one sided. If this was a Mutal , and savers were losing that would be an entirely different discussion...

Saran_2

karanda wrote: »

Sir Richard Branson has given his clearest hint yet that Virgin will become a high street bank within two years. He said that Virgin would return to the mortgage market and obtain a banking licence, possibly through an acquisition.

He believes that the lack of trust in existing banks and lenders will give Virgin an opportunity to build market share quickly.

He needs to be careful though. We all signed up to a trustworthy One Account and look what has happened to it - even though it still continues to use the Virgin brand. His distinct silence over the whole thing does make me have second thoughts now about the long-term commitment of Virgin when it launches a product.

stevem999

Saran wrote: »

We all signed up to a trustworthy One Account and look what has happened to it - even though it still continues to use the Virgin brand.

Please, I've seen this statement so many times in this thread - The One Account does not carry any Virgin branding and hasn't for several years. They may have continued to use the Virgin name for some time after but Virgin sold their share to RBS in 2001. It hasn't had any branding or connection with Virgin for a long time. Have a look at www.virgin.co.uk and see if you can find a link?

http://business.scotsman.com/6983/Royal-Bank-buy-out-second.2257384.jp

http://www.independent.co.uk/news/business/news/bransons-virgin-one-sale-raises-pound50m-for-war-chest-678853.html

AnnoyedatOnaccount

stevem999, you are mistaken. Have a butchers at this site:
http://uk.virginmoney.com/virgin/mortgage/index.jsp
Quite clearly, Virign say they are still teamed up with the oneaccount. The situation at the moment does Branson and his Virgin brand no favours...

Saran_2

stevem999 wrote: »

The One Account does not carry any Virgin branding and hasn't for several years. They may have continued to use the Virgin name for some time after but Virgin sold their share to RBS in 2001.

'Fraid you are wrong on several counts.

Each month my statement arrives with the Virgin One Account emblazoned across the top. My cheque books still use Virgin One Account on each cheque and my debit card also has Virgin One Account on it (issued in 2007).

We are aware of who owns the brand - which you would know if you had followed this thread from the start - the point that was being made was that Virgin can't just turn their back and say 'nothing to do with me, Guv', as they continue to allow RBS to use their brand and the values associated with it.