Call To Boycott Alliance & Leicester

lisyloo

How many people complain about the 'unfair' terms and conditions when they sign up for an account?

The vast majority do not read all the pages of small print before signing (in some cases hundreds of pages).
In fact I'd be suprised if anyone does.

The fact of the matter is that you don't find out about these things until there is a problem.

bengal-stripe

BenefitMaster wrote:

a declaration that any term allowing them to close my account without cause is similarly unlawful.

What’s unlawful about that?

Two parties have a business relationship, either side can terminate it. Your local greengrocer can ask you to shop elsewhere, so can your bank. Quite a few mail order companies terminate agreements if a particular customer has too many returns.

The bank has agreed to give you 30 days notice of closing the account (unless there is fraud involved). That’s all.

It was you, who started breaking the agreement (otherwise you would not have gotten that very first charge).

The_Boss

bengal-stripe wrote:

What’s unlawful about that?

Two parties have a business relationship, either side can terminate it. Your local greengrocer can ask you to shop elsewhere, so can your bank. Quite a few mail order companies terminate agreements if a particular customer has too many returns.

The bank has agreed to give you 30 days notice of closing the account (unless there is fraud involved). That’s all.

It was you, who started breaking the agreement (otherwise you would not have gotten that very first charge).

Exactly. I love the way people with these accounts just expect to be able to use the account exactly how they want to and not have to bother with anything like using it responsibly.

MarkyMarkD

lisyloo wrote:

But if it's a cash ISA you need to TRANSFER.
You must not withdraw or you lose your ISA status.



Don't agree.
Certain accounts can affect your credit report.

This thread is about a current account and linked savings account, not an ISA. So your point is interesting but irrelevant.

And current accounts and savings accounts, with no balance, are unlikely to have any impact on anyone's credit score.

Gordon_the_Moron

Interesting the way this argument has got somewhat heated from both sides. I work for a high street bank, I don't bank with them (for my current account or regular saver or E-savings) though I have got an ISA with them. I did use A + L but not any more and I will explain why.

Banks excessive charges are ILLEGAL, they are not entitled to levy penalties for going slightly overdrawn, but they all do, if you don't accept the terms you don't get an account. That doesn't however make them enforcable in a court does it?

The argument that people that don't misuse their accounts will end up subsidising others is garbage. Banks will never again charge for in credit current accounts, there is just too much competition out there.

A + L aren't operating on the low margins people suggest, they offer 5% on a current account (up to £2500) which only amounts to around £100 a year if you keep £2500 in all the time (by the very nature of a current account you won't have the same amount in all time, have a lower sum and you lose it, have a higher balance and you lose out to), the rate will drop to 3.5% (BOE base rat dependant) in a year or so, there charges are horrendous, their ISA is crap (4.5% on any amount) their E-saver isn't that good either. They love their introductory offer but get through the honeymoon period and the deals really aren't that good.

Coventry Building Society pay better (yes I know thats an introductory offer too before you point it out, but still a better deal after) on large sums of money, they also offer a buffer zone on overdraft before charging, how does such a small organisation do that if A + L can't?

MarkyMarkD

Gordon

Both the 5% introductory current account rate and the 4.5% ISA rate are loss-making rates as A&L could get the money cheaper from the money markets in both cases. So to call those rates crap is just daft.

Any bank/BS can offer loss-making products in the short term - A&L are already doing so, and Coventry are as well. But if they do so, they are robbing someone to do so - their shareholders, in A&L's case, and their members, in Cov's case. Whether that's right or wrong is a judgement call for each institution.

PoorDave

Aark wrote:

I have an Alliance & Leicester current account, regular savings account, cash ISA and instant access savings account. As far as I am concerned these are all excellent products.

Just as banks intend to maximise profits, I also intend to maximise my profits by using the best accounts available. If these happen to be with Alliance & Leicester I see no reason to refuse them just because some other customers have had issues.

Agreed. All good products. I see no reason to boycott as I capable of managing my finances so that no silly charges occur anyway

PoorDave

steve_cov wrote:

I have my minor moans and rants about A&L, but in my view, anything which inconveniences Daily Mail readers is a Good Thing.

And is to be encouraged at every opportunity!

Boycott the Daily Mail!

Gordon_the_Moron

MarkyMarkD wrote:

Gordon

Both the 5% introductory current account rate and the 4.5% ISA rate are loss-making rates as A&L could get the money cheaper from the money markets in both cases. So to call those rates crap is just daft.

Any bank/BS can offer loss-making products in the short term - A&L are already doing so, and Coventry are as well. But if they do so, they are robbing someone to do so - their shareholders, in A&L's case, and their members, in Cov's case. Whether that's right or wrong is a judgement call for each institution.

I didn't call the 5% introductory current account crap, I just don't think it is AS GOOD as it seems. Yes they pay 5% (gross) on up to £2500 but above that 0.1% so the total interest even if you have £2500 at all times (impossible in practice with a current account) is not that huge. At the end it falls below the B of E base rate, the penalties for misuse are horrendous, go 1p over your overdraft limit for 5 days you get charged £50 (immoral and illegal, unless you know how much these charges net you don't know if A & L could get the money cheaper from the market) once you've got the account they can try and sell you other services
The ISA I would call crap compared to others, Natwest and Barclays both offer better deals (especially if there is a lot in your account)

The Coventry account is outstanding at present but it will still be a bloody good deal at the end of the offer period and the absence of a cap on the amount they pay interest on (well theoretically yes it is 250k but a <5k cap) you can earn decent interest.

I don't see how you work out they are robbing their shareholders/members though, the banks/building socities aren't doing this because they are nice people, they are doing it to be competitive and sell you their products (once you've got the current account they can try and sell you every other product they provide, people are more likely to take a loan or mortgage or whatever from their current account provider than someone else) if offering the deal was causing them a net loss they wouldn't do it.

Sorry I took a while replying, I'm on holiday, just came in a net cafe to check my E-mails. I earn about £1100 per month take home, live on my own, run a car, keep saving money in an ISA and I'm on holiday with my girlfriend in Barbados for a fortnight, my friends call me THE money saving expert. HA HA

MarkyMarkD

Of course you're right, Gordon, that loss leading products are only offered to win customers who'll either buy other product or pay charges, or overall the institutions won't make any profit at all.

Which means that people who cherry pick products, and are smart enough not to pay charges, will not make them any money at all.

That's just life though - like I say, it's up to each institution to determine how much cross-subsidy it's prepared to bear, and I don't think it's fair to slag off banks/BSs because their products aren't as loss-making as someone else's loss leader!

Hope you are enjoying your holiday.