Natwest have just pulled my offset credit line

NotNatWest

Well the tail unfolds.
Today we have received a fairly standard looking response to our "official" complaint on having 60K of our savings effectively locked into our property. Unsurprisingly it says they will not go back on there decision we have therefore asked for an official letter stating that the matter has not been resolved to our satisfaction. This is the letter required to move the thing on to the arbitration Ombudsman. The voice in the call centre seemed totally unsuprised at having to send us the letter and when asked politely if there was anyone we could talk to about this matter got the response, I Quote " well theres no point talking to us as its been decided".... Mmm customer service at its finest!!!

We are going to continue our quest for some kind of fair treatment with the Ombudsman and failing that it looks like we will have to get the Courts involved.... just what you need before Christmas....

A little bird has told us that BBC Radio 4's Moneybox program on Saturday will be running a story on the Foundations Scandal .... lets hope RBS are listening.

Kavanne

NotNatWest, have you called and spoken to anyone at FOS yet? Do they think you might have a case with them?

I'm just thinking that the bank usually does think about the potential FOS issues before they make moves like this....

Their consumer helpline number is here: http://www.financial-ombudsman.org.uk/contact/index.html

jagman46

I'm delighted (well not really) to see that there are others with the same problem as me. I thought I was the only one with the Foundation Mortgage problem and I have been on the phone for 2 days now getting nowhere. Been told that there is no point phoning, complaining etc as the decision has been made and will NOT be changed. I didn't even get a letter of notification and understand from one decent man at NW that there are loads of us who didn't and lots of complaints going in. I have been with NW 46 years and have a proven business and private banking record, but that means sweet FA. I understand that RBS have told NW to claw back everything possible, reduce all loans which were made at the fixed rate of 1% above base i.e. Foundation Mortgage and offer a new facility charging arrangement fee and higher interest. We didn't complain though when interest rates were high, we paid that rate plus 1%, and it is obvious that now that interest rates are low they are not happy and are worming out of their agreement. Good luck to everyone else who is fighting NW and I am with you all the way.

jagman46

I forgot to mention in my previous post that if I agree to take out a new loan with NW they will automatically transfer the original borrowings onto the new loan, at a higher interest rate, and close the original mortgage facility. Short and curlies or what.
Thanks for all the helpful information, and sympathy, from previous posters, I have just written to the Ombudsman - not holding my breath though!

Kavanne

jag, look at other lenders. yeah you might not get such favourable terms as the product you had before but you have to be prepared no matter what the outcome of your FOS case. You might want to look at offset products?

russp

All

Dont give up and take the rather poor offer they have made us. If you do you may not have any redress later. I am still awaiting a decision on the re-instatement of at least some of the funds to cover my december payroll and HMRC liabilites. They have moved the time scale from 24hrs to 72hrs, I put another complaint in. Todate I have raised 6 complaints with them since monday. If nothing else at least its causing them compliance issues and paperwork. The more who complain, the more pressure they will be under.

PROPERTYMAN_2

I quite agree russp. I had my facility cut by nearly 50%, which leaves me up the creek without a paddle in my business. This is nothing short of blackmail to force us all into taking another product that is more favourable to the bank. I'm consulting a lawyer to see if there is any likelihood of reversing this action. I extended my credit limit at the beginning of last year and, sometime in the middle of the year I was contacted by a member of the Foundations Mortgage team to ask if I still needed the full facilty. I said yes and he said that was fine, it would remain in place. I was consulted last year but not this time- I don't think that amounts to the bank behaving reasonably. Did anyone else have this experience of being consulted last year?

EdInvestor

I wonder if the OFT would be interested in this, as it cogitates on whether to pursue its case against the banks for unfair penalty charges.

It seems that having been told to stop screwing their poor and less well informed customers, the banks are now turning their attention to grinding down the better off ones.

Worth checking?

Thrugelmir

EdInvestor wrote: »

I wonder if the OFT would be interested in this, as it cogitates on whether to pursue its case against the banks for unfair penalty charges.

It seems that having been told to stop screwing their poor and less well informed customers, the banks are now turning their attention to grinding down the better off ones.

Worth checking?

Always read the small print.

According to the terms and conditions of the Foundations mortgage, RBS "reserves the right to increase or decrease the amount of total credit at any time if we reasonably think this is necessary”.

cazuk

Guys, just wanted to update you all to give some bit of hope, unsure if I've just got lucky by having a strong account manager but having sent in requested invoices/payment schedules on Tuesday to both the foundations appeal team and my account manager I have had my credit line restored to a more reasonable level.

I hope the rest of you have the same luck