fixed rate dropped while money being transferred

xajcx

How can it be moral or legal for the banks to offer a fixed rate account then reduce the rate while your money is being transfered and cleared.
In my case I even phoned once the account was opened checking the rates before sending the money. I have been informed they will not honour the rate or give me my money back. which is even worse as there new rate is below the other banks offerings. Yes they have terms and conditions but there should be some moral/consumer law in whats right and wrong. If you go to a shop and puchase anything it does not alter the price before cleard funds. This practise must be stopped or at least brought to every ones attention. What happend to a cooling off period also?
This is the Halifax:mad:
Thanks

gonzouk

I always use chaps, same day so usually guarantees the rate.

RayWolfe

I fail to understand why you opened an account without putting money in it. Had you transferred the money upon opening or even paid in a cheque, you would have got the "rate prevailing at the time of funding" or whatever your wording is. I know lots of people do it the way you did ... but I'll never understand why.

Broadback

I applied to open an account with the Yorkshire Building Society, the next day their rates dropped. However the following day I received an Email saying that if I completed the application, and they received the money within 6 days, they would honour the interest rate. Gave me a warm feeling, other things being equal I will use them in the future.

opinions4u

xajcx wrote: »

How can it be moral or legal for the banks to offer a fixed rate account then reduce the rate while your money is being transfered and cleared.
Because they will take a loss on your money if they accept it at a rate over and above that dictated by the market. Fixed rate money markets change daily.

In my case I even phoned once the account was opened checking the rates before sending the money.
Well, they can only tell you the rates on offer at one point in time.

I have been informed they will not honour the rate
They don't have to. You didn't meet the terms and conditions.

or give me my money back. which is even worse as there new rate is below the other banks offerings.
This seems harsh - see my note below.

What happend to a cooling off period also?
If they offered a cooling off period on a fixed rate account, they would see a lot of closures within that period at a time when rates are rising. It isn't economically viable to do that.


Thanks

I think the key here is making a polite phone call to their Customer Relations department (check out their web site for this).

Explain to them that your funding method commenced when the higher rate was available and it was clearly your intention to benefit from the higher rate. Ask them if they could back date the receipt of these funds for the account to qualify.

If they decline to do this (which they are entitled to), ask them to reimburse the funds as you clearly had no intention of buying the product at the lowest rate.

If they refuse, ask them their view on "how the FSA would view this in the light of their Treating Customers Fairly" policy.

This should get the desired result. If it doesn't, ask for a letter of deadlock and take it to the Ombudsman. You'll probably win the right to your money back, but not interest at the higher rate.

Be honest with yourself though. You knew rates were falling when you set the account up. Did it not cross your mind to ensure you funded it quickly?

poppy10_2

xajcx wrote: »

How can it be moral or legal for the banks to offer a fixed rate account then reduce the rate while your money is being transfered and cleared.

This is the Halifax:mad:
Thanks

Same happened to me with the Halifax fixed rate account - dropped by 1% between me opening it and the funds landing in the account, even though the only funding method available was a DD transfer which I set up the same day. :mad: