Natwest have just pulled my offset credit line

cazuk

Also there is a link on the daily Mail website (apologies cannot post link)

russp

Thats a great, to the point letter. I hope that we can get some form of assiatance. It can only help. I will also send them a letter in the morning

Joe_Bloggs

I think this is the Daily Mail Website link that cazuk wanted to post.
J_B.

Rick62

cazuk wrote: »

Sec 3 f - we reserve the right to increase or decrease the amount of the total credit at anytime if we reasonably think this is necessary. and sec 3 g - we will review the operation of your account and the total credit at least annually. We will notify you as soon as is reasonably practicable if we decided to increase or decrease the total credit following a review

Just a thought - if they do offer any of you a new/additional facility/overdraft etc (but at higher rate), get this in writing. Sec 3f above talks about being able to change the amount of credit, not the amount charged for that credit.

Reasonable reasons to change the amount, to me, would be changes in the property value (and thus LTV) or in your income (based on mutiples) and maybe nearing retirement for older customers. So if you had a £300k facility on a £400k house and the value dropped to £360k then it would be 'reasonable' to reduce the facility to £270k, but not to gratuitously drop it to, say, £150k.

Senior_Paper_Monitor

I've watched this thread with something approaching disbelief that a bank would (or could) act like this (and believe me I have little faith in banks and their nonesty or benevolence) before making any comment.

I had intended to sit down and do some serious research before commenting - but I think Rick62 has hit on a vital point that I had certainly missed on first reading.

I am sending a further comment by PM to CasUK with a couple of what I think are relevant points - I am doing it this way because I suspect that with the publicity approches being taken (and I suggest these are also totally valid strategy) that Natwest may well read this.

I suggest that others offering advice or relevant may well wish to do the same.

russp

I have today faxed all my immediate payroll, HMRC and trade account liabilites that I will have in December. I really hope that that they look kindly against them. I have calmed down a bit today and had a reasonable conversation with the foundations team, but still got the same replies (didnt really expect anything else really). My Private account manager informs me that there is nothing he can do his end and the only option if I want a full credit line re-instatement is by taking out a new mortgage with them on less favourable terms. This is a nightmare, "yes sir you can have your liqudity back but at a higher rate of interest, oh, and thats only for 2 years, after that our std variable rate will apply.". Basically you have no choice if you need to realease funds, (like I do). I will not give in to them though. They sold me the product all thoses years ago, what right do they now have to change to rules?? I am not very well versed on contract law but when I asked them to review my limit under the T&Cs i was told no as the product is no longer availiable. Yet they use them when it suits there needs?? I feel totally cheated and stabbed in the back by NatWest. The underhanded tactics they have employed was, so I was told today, because the last review they undertook, mine was12-18 months, too many people complained to them about it. I didnt, they wrote to me we came to and agreement, lowered my limit slightly, job done. Why could they not do the same again?? Frustration, I am tearing my hair out. The best line of the day though "we understand sir", what? what do you understand, you have no idea what you have done to me/us. As long as you get your salary everymonth all is well. What about us business owners that have had ALL their working capital removed overnight, understand, they dont have a clue.

Rant Over

kmmr

Here are the FSA TCF (treating customers fairly) guidelines:
The six TCF outcomes

We have defined six consumer outcomes, which explain what we want TCF to achieve for consumers.


Outcome 1: Consumers can be confident that they are dealing with firms where the fair treatment of customers is central to the corporate culture.
Outcome 2: Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly.
Outcome 3: Consumers are provided with clear information and are kept appropriately informed before, during and after the point of sale.
Outcome 4: Where consumers receive advice, the advice is suitable and takes account of their circumstances.
Outcome 5: Consumers are provided with products that perform as firms have led them to expect, and the associated service is of an acceptable standard and as they have been led to expect.
Outcome 6: Consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint.

I am not sure if you can contact the FSA directly (or if the ombudsman is virtually the same thing) but I think you can claim that the firm is breaching Outcome 5.

You can search on the FSA website for TCF information.

JODEUK

We are in exactly the same situation, we've had our foundations mortgage with Natwest since 2001 and on Thursday last week when I checked online to move some funds back to our current account they had reduced our credit limit by nearly £40k. Funds we had accumulated by selling shares to pay for our extension. I spent around 2 hours on the phone to various individuals, as did my husband. We contacted our relationship manager who was as surprised as we were and had not been pre-warned of the situation.
The letter advising us of change in credit limit did not arrive until saturday.
Natwest have stood firm and refused to increase the limit unless we could send invoices or contracts that proved we had payments to make in the next four weeks (make that two when you take Christmas into account !! ) It has been done in a totally underhand way and we have logged a formal complaint. If they do not increase our limit again which they are saying will never happen if we can not provide the documentation we will have no alternative but to re-mortgage at the higher rates. We have to get our hard earned savings back. Talk about stress you just don't need at this time of year.

Pete*G_4

I don't have a mortgage with Natwest, nor do I really follow what the type of mortgage in question entails however having stumbled upon the thread I now have a question.

surely if you've paid your savings into it, as some have posted above, then Natwest shouldn't be able to withdraw it, as in effect they've just taken your money and run?

JODEUK

Out thoughts exactly Pete*G. We've transferred money on a weekly basis into the account as well as lump sums from sale of shares, bonuses, tax rebates etc with the understanding that we could transfer them back to our current account with the touch of a button. We originally used the full facility to pay off our previous mortgage, the entire surplus has been built up over a period of eight years. We've always saved for holidays, cars, home improvements etc using this account.
Our LTV was less than 42% its now less than 27% with their revised credit limit.
If we knew that by transferring our savings to this account we would not be able to access them as and when we wanted we would have left them in our savings account. Having to justify to a guy in a call centre what we wanted to spend our savings on and provide evidence that we we committed to spending in the next four weeks made me so mad.
They have obviously hand picked the guys in the call centre as you had to admire their almost computer like response, if they said "I totally understand" once I heard it 35 times.....
I've been banking with Natwest for 28 years and if this is the way they treat their loyal customers then its time I changed banks.
I rang the FSA on Friday but they advised me that we need to complain directly to Natwest and then the Financial Services Ombudsman if we weren't satisfied.