RANT OF THE WEEK: NAME AND SHAME NATIONWIDE

MSE_Martin

Reader's of m'book will know I'm no fan of 'price promises' - false security blankets making people think they've a good deal.

Nationwide's new car insurance ad says "find it cheaper within 28 days and we'll refund the difference". What a scam! How many people check quotes AFTER signing up? And all it's offering is insurance at the same price as competitors. Avoid.

Related Articles: Car Insurance and Home Insurance cost cutting plans.

Click reply to discuss

bridiej

It's bad enough having to check quotes BEFORE you sign up for your insurance! >:(

Lismenary

Nationwide - the kind friendly sharing Mutual Society - I don't think. In addition to this nasty insurance scam they are reducing the cashback on their credit card to a miserable .25% in March and raising the interest rate on purchases by 1%. Do they know something we don't about the Bank of England raising interest rates. And they have the cheek to call the Banks greedy!! Their savings rates aren't wonderful and they keep telling us that they put members first. At least the Banks pay their shareholders dividends!!

marsha8

I have just left Lloyds (current account) & changed to Nationwide & have noticed the improvement all ready.I was with Lloyds for 46 years & never got a penny extra from them.I have been with Nationwide for two & a half months & have already received some interest. Moneysaving expert.com gave me some of the impetus to change banks & I am pleased to have made the change though it did not go as smoothly as I would have liked.

worldtraveller

..I can't agree with you on this! How can you call it a scam, as if it's fraudulent or misleading (my understanding of the word)? Surely this is just a standard marketing plan? You also state that they are only offering insurance at the same price as competitors. So why avoid it?? Also, surely any added benefit must be good for the consumer? I'm sure there are some anoraks out there who are prepared to check the premium after they have purchased a particular insurance.

bridiej

The thing is getting loads of quotes is a big enough pain the first time - I wonder if you asked 1,000 people how many of them actually bother to get a different quote before renewing, let alone after?

Wholistic-Me

I agree about "Price Promises" that are not honoured!
Total Insurance advertises the following on their website (This was copied directly):
"OUR PRICE PROMISE
WHAT WE WILL DO
If you receive a lower quotation than the one we offer you we will match that quotation"

I met the requirements by providing a full quote in writing, listing the detailed proposed cover...they "met" it and said they could not beat it by the £30! They provided the same cover, at the same price, FROM THE SAME INSURER, that I eventually got from the first company who provided THE CHEAPEST, AND GOOD COVER" THE FIRST TIME I ASKED FOR A QUOTE. I SUBSEQUENTLY LEARNED THAT TOTAL INSURANCE APPARENTLY GET THE QUOTE, THEN PHONE THE COMPANY FOR A BETTER RATE, GIVE YOU THE £30, AND KEEP THE DIFFERENCE! THEY COULD NOT GET A BETTER QUOTE ON MINE, BECAUSE MINIBUS PLUS (OR, THE MINIBUS CLUB) GAVE ME THE BEST PRICE UP FRONT, WITH NO EMPTY PRICE PROMISES!

BUT THIS IS HOW THEY CATCH PEOPLE...AS MANY PEOPLE (silly I know) don't phone around when they read the words "cheapest insurance"!

SO, YES, PHONING AROUND IS WORTH THE EFFORT!

Lismenary

On the Credit Card angle again - I've discovered that they won't even pay the pitiful .25% cashback on foreign transactions but surprise, surprise the 1% hike in interest rates applies to all transactions.
I bank with Alliance & Leicester who pay me 5.35% on my current account - I know Nationwide pay interest on theirs but it isn't very much. In addition I get dividends from Alliance & Leicester. Nationwide claim to pay higher interest because they are mutual, but on looking at this claim it only seems to apply to those who take out bonds and tie their money up for at least a year. Their other savings rates aren't wonderful nor are their mortgage rates. I know you can open one of their bonds with £1 but whats the point when you can get as good a deal eksewhere without tying up your money. And yes the insurance deal is a scam in that it is misleading in that it is dressed up to be something that it isn't.

karenj

I opened a Flex Account and e-savings with them in August, transferring the 'extra bonus' account I had with them. I also have my mortgage with them and got a good fixed interest rate before interest rates started rising (thank God I did!), at no cost to me. Their internet banking is also so easy to use. I cannot comment on car insurance as I have never asked for a quote, but I am quite happy with what I have with them and the staff in my local branch are very helpful, which is very important to me. Each to his own, I suppose.