Alliance & Leicester SVR concern

matt83uk

It is important to remember banks don't borrow at the BoE rate, and the 2% slide over past two months hasn't been fully reflected in wholesale borrowing.

It is annoying that Abbey were able to do the full reduction, it also further annoying that they are over 2% higher than FD SVR.

olly300

matt83uk wrote: »

It is important to remember banks don't borrow at the BoE rate, and the 2% slide over past two months hasn't been fully reflected in wholesale borrowing.

It is annoying that Abbey were able to do the full reduction, it also further annoying that they are over 2% higher than FD SVR.

That's not the point.

If people don't bother to complain about things then things don't improve.

And writing emails is not exactly hard work.

michaelm

dmg24 wrote: »

You will find that A&L do tend to pass on their rates later than most. Whilst I am not excusing this, I do not see that you have any grounds to state that the cut is not going to be passed on at all.

Your comment about A&L's CS staff is very unfair. They do not make any decisions with regard to the interest rate, and I imagine they are having a pretty horrid time at the moment.

I rest my case. Disgraceful behaviour by this bank. I defy anyone to declare otherwise.

michaelm

My email:

I am writing to complain in the strongest possible terms about the Alliance and Leicester bank’s failure to pass on the 2 latest Bank of England interest rates cuts in full to Standard Variable Rate mortgage customers.

In October, when the Bank of England reduced interest rates by 0.5%, Alliance and Leicester only passed on 0.25 to SVR customers. In November, the BoE reduced rates by 1.5%. However, Alliance and Leicester waited until close of play on the very last banking day of November to announce a measly 1.1% cut to SVR customers, a total of 1.35% out of a total of 2.0%. Given that the government saw fit to bail the banking system out to the tune of Billions of pounds (of tax payers’ money) I find this reduction totally unacceptable.

I listened to the Prime Minister on the Jeremy Vine show on BBC Radio 2 on 25th November, in which he gave undertakings to ensure that the public benefitted in full from the latest round of BoE interest rate cuts. However, as a married man with 3 children I am seeing no such undertaking being enforced. I am a Civil Servant of 22 years and I do not see this Government safeguarding the needs of its people, only a banking system that is using the latest rounds of BoE interest rate cuts to bolster its profits, it’s shareholder premiums and it’s “fat cat” bonus payments.

When is the Government going to act to ensure that ALL banks pass on BoE interest rate cuts in full to ALL customers and not just those on BoE Tracker mortgages?

I do not expect a proper, full, truthful answer to this question as I do not believe this Government is capable of such a thing.

Eurosaver

olly300 wrote: »

That's not the point.

If people don't bother to complain about things then things don't improve.

And writing emails is not exactly hard work.

Agreed. It's also easy enough to copy to them to the A & L complaints e-mail address which is [EMAIL="letsworkitout@alliance-leicester.co.uk"]letsworkitout@alliance-leicester.co.uk[/EMAIL].

michaelm

Email sent to fianacial ombudsman as follows:

I am writing to complain in the strongest possible terms about the Alliance and Leicester bank’s failure to pass on the 2 latest Bank of England interest rates cuts in full to Standard Variable Rate mortgage customers.

In October, when the Bank of England reduced interest rates by 0.5%, Alliance and Leicester only passed on 0.25 to SVR customers. In November, the BoE reduced rates by 1.5%. However, A&L waited until close of play on the very last banking day of November to announce a measly 1.1% cut to SVR customers, a total of 1.35% out of a total of 2.0%.

Given that the government saw fit to bail the banking system out to the tune of billions of pounds (of tax payers’ money), I find this reduction totally unacceptable, even though the Government specifically urged all banks to do so and also given that A&L’s sister bank, Abbey (also part of the Santander Group) has passed the full cut on to its customers. It is widely accepted among A&L SVR customers that this is a ploy to maximise profits and, in turn, bolster its profits, it’s shareholder premiums and its “fat cat” bonus payments to directors.

[FONT=&quot]I now ask the financial ombudsman to take this matter up with Alliance and Leicester bank in order to ensure the full 2% cut is passed on in full to ALL its customers, not just those on BoE Tracker mortgages.[/FONT]

dmg24

michaelm wrote: »

I rest my case. Disgraceful behaviour by this bank. I defy anyone to declare otherwise.

You stated that there is no chance the rate cut has been passed on, implying that none of the cut would be passed on. You were wrong.

I am not impressed by the actions of A&L, however sending emails with silly comments like the one at the end of your will get you nowhere. Giving constructive feedback is much more effective.

michaelm

Eurosaver wrote: »

Agreed. It's also easy enough to copy to them to the A & L complaints e-mail address which is [EMAIL="letsworkitout@alliance-leicester.co.uk"]letsworkitout@alliance-leicester.co.uk[/EMAIL].

Email to A&L advising of my actions. I don't believe it will make any difference but its still worth a try.

michaelm

dmg24 wrote: »

You stated that there is no chance the rate cut has been passed on, implying that none of the cut would be passed on. You were wrong.

I am not impressed by the actions of A&L, however sending emails with silly comments like the one at the end of your will get you nowhere. Giving constructive feedback is much more effective.

Whatever. But perhaps my "silly comment" will get some poker-arsed treasury official off their backside and encourage them to produce a proper reply. However if we were all like you, nothing would be done.

olly300

dmg24 wrote: »

You stated that there is no chance the rate cut has been passed on, implying that none of the cut would be passed on. You were wrong.

I am not impressed by the actions of A&L, however sending emails with silly comments like the one at the end of your will get you nowhere. Giving constructive feedback is much more effective.

Emails have to be tailored to (or edited for) the recipient.

Hence you can complain one way to the government/MP but can't to the Financial Ombudsman as they have to look at the matter differently.