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I Need Help for an Elderly Friend re Savings

WiseOldBird_2
Posts: 163 Forumite

A tale of woe courtesy of Halifax (grrr). My friend in her 70's arranged herself an equity release from her property and armed with her cheque for £25k went and deposited it with Halifax into her current account. They asked no questions and sat on it for over a year - giving her a couple of quid interest over the year. I could cry for her!
Another friend put her wise and now she has opened a Tracker account with Barclays (still not the best one in my opinion - but that's another matter).
Anyway - my question is - is there anything we can do about the hundreds of pounds lost interest over the last year? What is the best way to approach this? Would it be a case for the financial ombudsman? I am so mad about this.
Also incidentally when she went to draw out the money to put into Barclays, Halifax asked why she was withdrawing it and when she said it was because of their abysmal interest rate they then had the cheek to offer to open a better account for her and give her a good interest rate. No wonder I'm furious!
Anyway any help appreciated from anyone who has been in a similar situation. Thanks in advance.
Another friend put her wise and now she has opened a Tracker account with Barclays (still not the best one in my opinion - but that's another matter).
Anyway - my question is - is there anything we can do about the hundreds of pounds lost interest over the last year? What is the best way to approach this? Would it be a case for the financial ombudsman? I am so mad about this.
Also incidentally when she went to draw out the money to put into Barclays, Halifax asked why she was withdrawing it and when she said it was because of their abysmal interest rate they then had the cheek to offer to open a better account for her and give her a good interest rate. No wonder I'm furious!
Anyway any help appreciated from anyone who has been in a similar situation. Thanks in advance.
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Comments
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Anyway - my question is - is there anything we can do about the hundreds of pounds lost interest over the last year? What is the best way to approach this? Would it be a case for the financial ombudsman? I am so mad about this.
I'm not unsympathetic but I fail to see how this is the Halifax' fault. It was up to your friend to choose the appropriate account for her deposit.
BTW I would be far more concerned about her decision to borrow money which she obviously doesn't need...0 -
I'm not so sure that nothing can be done (although whether you will win is anoter matter). I'd start by having a look at Halifax's literature. Does it say stuff about treating every customer as an individual, giving advice on the best investments etc? If so I think a stiff letter would be in order, with an implied threat to go to the press (which might be the best route in any case). It might be interesting to pose as someone who has £25k to open an account and to record (not physically) what you are told/advised....
What do others think?Ex board guide. Signature now changed (if you know, you know).0 -
Cheerfulcat - Re your response - I know it's not Halifax's fault, and I suppose moral obligations don't come into most financial institutions' thinking, but you would have thought professionally - especially in view of her age - they would have given her the best advice. I know that whenever I've deposited large amounts into my bank current account (HSBC), the counter staff have always asked if it's going out quickly, as my current account isn't the best place to keep it. I appreciate what they're trying to do.
Incidentally, my friend does need the cash. She has already spent quite a bit of it on home repairs and wants to go on holiday, and generally enjoy life without penny pinching, so she needs a good rate of interest with instant access. I can't say I blame her!0 -
WiseOldBird, I really do understand the way you're thinking but the bank is under no obligation, moral ( IMHO ) or otherwise, automatically to offer the best account. It is up to the customer to arrange his or her finances to the best advantage. As it happens I think that your friend was lucky; usually what happens when you have a sizeable amount to deposit is that the bank invites you to make an appointment with one of its financial team. She could easily have been sold some cr*ppy investment product.Incidentally, my friend does need the cash. She has already spent quite a bit of it on home repairs and wants to go on holiday, and generally enjoy life without penny pinching, so she needs a good rate of interest with instant access. I can't say I blame her!
Sorry, I inferred that she didn't need it from your OP, where you said that the bank " sat on it for over a year " - I thought that meant that she hadn't touched the account.0
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