Flex Account overseas' charges: tackling Nationwide at AGM

Megalomaniac

At the AGM, we should hire the actor in the Nationwide adverts to come through the door, swilling champagne and shouting "you started without me", waving the proposal document with 500 signatures

FluffyFiFi

Megalomaniac wrote: »

At the AGM, we should hire the actor in the Nationwide adverts to come through the door, swilling champagne and shouting "you started without me", waving the proposal document with 500 signatures

Great idea, but what does the proposal document say - you are passing on the charge to me that you have to pay. Where's the gripe in that.

Nationwide has paid the fee to Visa that they get for converting currency.

Nationwide convert currency at the bank rate and not tourist rate.

Nationwide do not charge fees for taking cash out at foreign ATMs.

Nationwide have now decided to pass on the fee that the've paid to Visa and people are saying it's not right, let's put a proposal through at the AGM. There are bigger things to worry about than a slight fee that has to be paid whatever. Basically it will be paid by Nationwide or by the user, in my mind it makes sense it is paid by the user.

With all these changes that are going on, surely the question is why are they doing this, is it because they want to become a Ltd company and attract shareholders. If this is an option we should look at the bigger picture, do we want them to do this or are we happy with the status quo?

will-in-estoril

FluffyFiFi wrote: »

With all these changes that are going on, surely the question is why are they doing this, is it because they want to become a Ltd company and attract shareholders. If this is an option we should look at the bigger picture, do we want them to do this or are we happy with the status quo?

Exactly the point I was making in post #31!

http://forums.moneysavingexpert.com/showthread.html?t=1564603&page=2

opinions4u

Hazzanet wrote: »

1) They amend the monthly pay in to get the top tier of interest - This is an exceptional time for the industry. With BofE rates falling through the floor, what else could they have done.
2) They abolish credit interest - see above
3) They tell non-debit card holders that they can't withdraw less than £30 at the counter. - well they have a card, so unless they're disabled in some way they should get out of the queue and use a machine. Why should other members have wait longer because a card account holder is refusing to use the facility paid for by other members (ie the card).
4) They raise the overdraft rate to 17.9%. - there's a credit crunch on don't you know. The risk of lending is higher. The cost of raising money is comparatively higher
5) They introduce a previously waived fee on overseas spending/withdrawals (except 'Europe') - Why should other members share a loss on the provision of this "free service"? Why should other members have to stand the loss of numerous low balance, low activity accounts being opened that only get used on the Costa Fortune for two weeks every year - and then at a loss to the society?
6) They'll increase the fee later in the year. - oh, I think they'll wait until early next year to be honest.

What's next?:

7) They introduce the fee for all overseas spending? - well they should.
8) They charge the fee at 3%, min £3 at cashpoints abroad? - possibly
9) They charge a monthly fee for the account? - possibly
10) They become no different than any bank on the high street? - well they've nearly always had lower interest than, say, the Halifax on their Flex account. They raise 30% of their funding wholesale. They have margin pressures of their own. Their mortgage service is shocking. They're not far off being like other banks, are they?

This is the society that sold itself as being proud to be different, and worthwhile dealing with because it is a mutual.

Since the 1980s you know perfectly well that no mutual has existed for the benefit of the members. They have existed for the benefit of the directors and chief executives who know that they can earn very large salaries out of running a building society profitably.

Hazzanet

opinions4u wrote: »

Since the 1980s you know perfectly well that no mutual has existed for the benefit of the members. They have existed for the benefit of the directors and chief executives who know that they can earn very large salaries out of running a building society profitably.

Thanks for your slightly acidic and somewhat patronising post.

I haven't been locked in solitary for the past 12 months so I'm aware of the credit crunch, and, like you, I work in financial services myself so I'm probably more aware than most.

Whilst I can appreciate some of your points, the fact of the matter is that I signed up to this account on certain understandings. The Ts & Cs clearly say that they can change what they want when they want, and when changes are made slowly over time, fine. My irritation is that they've changed many things over a short period, all to the detriment of the member.

I take your point that there is a cross-subsidy from the fee free transactions, but up until nine months ago, they were actively touting this as a reason to bank with them. As a member with savings, credit products and a FlexAccount, I think it's unfair for them to say "look at this benefit you get - one of the many reasons to bank with a mutual", and then have it taken away only months later.

There's two sides to every argument, and I genuinely think that a Building Society should be run for the benefit of the members. I know that normally they aren't, and with the credit crunch I expect peanuts as return for my savings, but a 5% overdraft rate increase? And is the expenditure to Visa really all that? I suspect not.

This is just my €0.02, others can agree or disagree. I could go on and say that I think we should get it over and done with and join the Euro; then there's little chance that Nationwide can charge a fee on the Costa Fortune but that would have macroeconomic issues of its own.

terafarma

Let's not be deceived any longer by Nationwide's mantra of "for the benefit of our members". It is no longer a building society but a bank in all but name.

Overdraft rate suddenly raised sky high, initially from 9.9% then to 12.9% and eventually 17.9%. As for interest on Flexaccount that is now history, interest on savings accounts are quite frankly unappetising, given the fact that were in a recession this could be excused to some extent.

My Fixed rate 6.15% ISA matures in April 2009, have moved my current account to First Direct who I know do not pay interest on current account but give a £250 interest and fee free overdraft buffer and only charge 15.9% above £500. Above all, I might as well bag free £100 plus £40 from cashback.co.uk for not earning interest on my current account with First Direct, rather than being charged 17.9% by Nationwide as do normal banks on overdraft. There is now no discernible benefit for being a member.

As for charges for overseas transaction within and outside Europe, I think its fair in my estimate, so far, as they are simply passing on what they are charged by VISA without any charges for commission.

What benefits do members enjoy with being with Nationwide, a Building Society? None as far as I'm concerned. It is a bank in the guise of a "Mutual Building Society".

newfoundglory

I dont think its unreasonable to be asked to pay the actual fee which Nationwide would otherwise have to pay itself, to Visa. I have been a Nationwide member for many years, and have used my Flexaccount all over the world. From the back of beyond to major cities. I have never been charged a fee at any ATM or had my card blocked or declined.

That to me is an incredible, invaluable service. One which is definitely worth a 1% fee when i'm outside Europe. If you use the service, surely YOU should be the one who pays the reasonable cost and not expect other customers to subsidise it.

Everyone on here seems to have forgotton that the charge will not be nearly 3%, neither will you likely have to pay any other charges on-top like other banks.

Yes, its a shame. But get over it. If anything, its probably because millions have opened Flexaccounts just for overseas usage. This would result in a loss for Nationwide. When i was in a branch a few weeks ago, i was behind someone who was rejected for a Flexaccount who was opening one exactly for this reason. I thought to myself "good". Hopefully, this will put many off applying and we can continue to enjoy wholesale rates and an improved service for everyone else.