Flex Account overseas' charges: tackling Nationwide at AGM

will-in-estoril

Like many other Nationwide members I am dismayed at the decision to charge for overseas' (non European) transactions from May this year.

This is a fundamental betrayal by Nationwide of the philosophy of the Society, much vaunted over the past years with expensive (but probably effective) television campaigns. What set Nationwide apart from others has been torn up without its members' consent, and the Society has not even had the decency to inform us in an open and honest way. (I received a leaflet in with my statement, in which the news was buried.)

I believe that this change is so fundamental that Nationwide should have put a resolution before the AGM in July.

There must be thousands of other members out there who think as I do. I am far from an expert in these matters, but there must be a mechanism of bringing this matter to the AGM this year.

Before anyone resigns themself to thinking that the charge is small, remember the advert Nationwide ran: the one about withdrawal charges paying for the bubbly at the shareholders meeting,

http://www.youtube.com/watch?v=4NxOaYgjxPQ&feature=related

and reflect on how Nationwide has already announced an increase from 0.84% to 1% on withdrawal charges. This is the thin end of a very big wedge. 1% this year. 2.75% next year? Charges within Europe? Who knows? The precedent has been set.

I wonder if there is anything Martin can suggest.

BruceyBonus

Do you have the support of 500 members? (As required to put a proposal to the AGM)

I'm sure you'd easily get 500 on here!

simax

You can count me in!

Hazzanet

Happy to lend my support to a resolution.

NOVASTAR

I'm in!
Can we do it before I go to New York at the end of May I was counting on taking money out of the hole in the wall as and when I needed it

Voyager2002

I would be very happy to sign such a resolution for the AGM.

emma396

me too!!!!

p00hsticks

Whilst I'm all for ordinary members raising motions at the AGM, and wish you luck in getting it on the agenda, I personally would not vote for such a motion

will-in-estoril wrote: »

reflect on how Nationwide has already announced an increase from 0.84% to 1% on withdrawal charges. This is the thin end of a very big wedge. 1% this year. 2.75% next year? Charges within Europe? Who knows? The precedent has been set.

These rates are set by VISA, not Nationwide. Nationwide are not imposing their own charges on foreign transactions, they are simply passing on the fee that VISA charge them directly to the customer that incurs them rather than absorbing it themselves (and so in effect spreading the cost on to all it's other customers).

will-in-estoril wrote: »

the Society has not even had the decency to inform us in an open and honest way. (I received a leaflet in with my statement, in which the news was buried.)

You must have had a different leaflet to me. As I recall, mine was clearly entitled 'Important changes to your Terms and Conditions' and stated in plain English the details of this. The leaflet was the only enclosure in with the statement, and the inofrmation on the fee change was the only thing in the leaflet, so I think to describe it as 'buried' isa bit of an exaggeration. Short of writing a separate letter to every one of their customers, which would cost a fortune, what more would you expect them to do ?

will-in-estoril wrote: »

This is a fundamental betrayal by Nationwide of the philosophy of the Society

Nationwide is a building society, not a bank. As such, its fundamental purpose is to offer savings and mortgage facilities, not banking services. Many people are with it just because it is a building society and not a bank. Currently its savers and mortgage holders are effectively subsidising those customers who only use Nationwide in order to obtain money abroad.

Whilst it was great that Nationwide felt it could afford to absorb VISA's charges in the past, it has a duty to its savers and mortgage holders too. And as a long standing customer of the society, I would personally prefer that in this current hard climate it directs its efforts and money towards providing better rates for savers and mortgage holders as a whole rather than in absorbing these charges to benefit a very small minority of custoer transactions.

And that's why I'll be voting against your motion.

never-in-doubt

p00hsticks wrote: »

Nationwide is a building society, not a bank. As such, its fundamental purpose is to offer savings and mortgage facilities, not banking services. Many people are with it just because it is a building society and not a bank. Currently its savers and mortgage holders are effectively subsidising those customers who only use Nationwide in order to obtain money abroad.

Whilst it was great that Nationwide felt it could afford to absorb VISA's charges in the past, it has a duty to its savers and mortgage holders too. And as a long standing customer of the society, I would personally prefer that in this current hard climate it directs its efforts and money towards providing better rates for savers and mortgage holders as a whole rather than in absorbing these charges to benefit a very small minority of custoer transactions.

And that's why I'll be voting against your motion.

Right.....

And have you for one moment forgot about the shareholders bonus payments? The new offices (or branches whatever you call them) they keep building? and best of all the bank charges that they make from people with o/d's etc? Oh before I forget, what about loans and credit cards?

I think, once you take off your blinkers, the mortgage holders and savers are not paying for the general bankers at all - other bankers are paying for them! Mortgage and savers are the ones causing the banking customers to pay this fee cos they just take, take, take giving nothing back!

I think you need to learn a little more about how funding works, allocation of funding and most importantly how a bank/building society works.

Sorry but it seems you're missing the whole point. The OP is clearly stating that it is wrong for them to add this charge without asking their shareholders first.

I agree and would sign any petition going.

thumshie

never-in-doubt wrote: »

Right.....

And have you for one moment forgot about the shareholders bonus payments? The new offices (or branches whatever you call them) they keep building?

[snip]

Sorry but it seems you're missing the whole point. The OP is clearly stating that it is wrong for them to add this charge without asking their shareholders first.

I agree and would sign any petition going.

So are you suggesting that 'shareholders' - or members whatever you wish to call them - should be asked about all changes? Do they ask when they increase/decrease interest rates? Hire a new member of staff? Buy pens and paper? Get Real.. Members vote people onto the board so that they can run the business...

will-in-estoril wrote:

I believe that this change is so fundamental that Nationwide should have put a resolution before the AGM in July.

fundamental? what percentage of all transactions will be effected. I doubt many people would consider it a fundamental change..

FluffyFiFi

never-in-doubt wrote: »

Right.....

And have you for one moment forgot about the shareholders bonus payments? The new offices (or branches whatever you call them) they keep building? and best of all the bank charges that they make from people with o/d's etc? Oh before I forget, what about loans and credit cards?

I think, once you take off your blinkers, the mortgage holders and savers are not paying for the general bankers at all - other bankers are paying for them! Mortgage and savers are the ones causing the banking customers to pay this fee cos they just take, take, take giving nothing back!

I think you need to learn a little more about how funding works, allocation of funding and most importantly how a bank/building society works.

Sorry but it seems you're missing the whole point. The OP is clearly stating that it is wrong for them to add this charge without asking their shareholders first.

I agree and would sign any petition going.

Nationwide doesn't have shareholders. There are no bonuses paid out to shareholders, any bonus is performance related and this is how each individual who works for Nationwide performs.

If you have an account with Nationwide just go into a branch and ask to leave feedback that you are against these charges. This would be an effective way of letting the decision makers know how you feel.

The charge is only the charge that Nationwide pays Visa so why do you think this cost should now be absorbed by the Society?