Santander notification requirements

Momen1960

There have been a lot of very disgruntled Santander (ex Abbey) customers this week when we received our annual ISA statements and saw that the amount we were paid meant the rate had dropped from 3.5% (approx depended on amount in account) to about 0.1% (again based on amount in account). Now I'm not arguing about the reasoning why they dropped the rate as we all know interest rates have plumetted. What we are annoyed about is Santander's attitude about whether we should have been informed by mail about the drop. They state that the T&Cs says informing by direct mail is just one way but they can also inform by Web Page, 4 national newspapers or in their branches. Now this begs the questions how is that fair for say someone who doesn't have web access, doesn't buy one of those 4 papers and doesn't have a branch that they use because there isn't one. Their terms and conditions also state that if they change the T&Cs in any way that is a disadvantage to the customer then they must inform them by post. Surely they should have at least given customers the opportunity to state that they want to be informed by post because they don't use the other methods. We would all then have been given the chance to transfer our money across before we saw over a £300 drop in our interest payments.

Also I was led to believe that an ISA can only be legally managed by a recognised ISA manager and according to HMRC's web site Santander are only registered to do Stock and Shares ISAs so how can they make a decision on our Cash ISA's interest rates?

Santander latest advertising campaign and even leaflets that they have placed in with our annual statements go on about doing their best financially for their customers well this doesn't sound like that to me.

So Mr Lewis being the great campaigner that you are for our rights against these financial institutions do you think we have a case here for some sort of compensation due to some sort of legal loophole?

Jaycee_Dove

We are in exactly the same position.

We opened our account as a Tessa with Abbey over a decade ago and were taken with it into a bank Isa now at Santander.

Every year we have earned a steady several hundred pounds that has varied but never significantly.

We were utterly devastated when we saw what Santander had done and how our interest had fallen from £400 plus last year to £14 this year. Not a reduction - more a destruction.

I called Santander (itself a nightmare as we were shunted all over the place) and asked if it was a mistake. No, I was told. Basically YOU should have called us to see if there was a better deal. It was not Santander's responsibility to say anything to me.

I said that I felt like they were abusing my trust. We had had a very happy relationship with Abbey and I have three other accounts with them and right now intended to close them all as after 20 years with Abbey I had not expected to be treated like this just so they could create a great new ISA for new customers and promote it all over TV. One I gather we cannot even transfer into. Thanks!

If they were only interested in short term new customers who would leave in favour of a better offer in a year or two and had no interest in their customers who have done all their business with them for decades then they are no longer a company that I can respect.

I politely asked how to make an official complaint. Was told that many were doing this over this issue but someone would call me about it. Four days later I am still waiting.

I feel dreadfully let down and that a great British institution has disowned its best customers now they have become foreign owned.

They surely had a moral, if not legal, responsibility to us. And if not a legal responsibility - then why not?

I put long term trust in them and it has proven worthless.

I wonder if a class action complaint might even be worth considering?

Meantime what do we do as it is obvious this isa is a dead duck and I have absoloutely no faith in moving to another Santander product even if they would let you.

Are they also going to impose stringent transfer costs to try to stop us?

Extremely disappointed in a company that up to now I had respected.

PC_Gabriel_Kent

They will argue that rates are published on the internet, in newspapers and in the branch. They also will argue that it is upto you to check what rate you are on for your own accounts.

Baldur

See the FOS take on this http://www.financial-ombudsman.org.uk/publications/ombudsman-news/23/iss23-varying.htm

Momen1960

So the Ombudsman site you posted goes on about "The power to change interest rates may still be unfair – if it creates a significant imbalance in favour of the firm". I would say that in this case where they have dropped rates from 3.5% to 0.1% saving themselves in the region of £300-£380 per customer is a significant imbalance in the favour of the firm. So I am going to try the correct path first and complain officially to Santander and if I get no joy there then I will go the the Ombudsman and FSA direct.

sabretoothtigger

That might be true normally but the base rate is 0.5% so if they had given interest rate of 4% when the base rate was 5% would you still have a case.

I dont believe a complaint will stand

Also every single bank I know of does this trick so I presume its a well tested route to routinely sneak in near zero rates when people arent watching or even if they are.

I think MSE are campaigning so that interest rates must be shown on statements alongside the balance