C & G shabby? Tactics?

Cook_County

I have no idea if I will succeed but I would like fair compensation equal to lost interest.

I have an 85 year old aunt. For the last 2 years she has suffered from dementia. She has no clue about her own money any more, but since I have Lasting Power of Attorney I manage her savings and investments. I have been writing for the past year to every place where she invested and one of those was Cheltenham & Gloucester (C & G). They have finally – finally – replied and told me that she roughly £60,000 all told in a Direct Transfer Account and cash ISA’s – all paying a interest at a staggering 0.05%!
I will write and ask them to consider compensating my aunt for the interest lost because:

1. She has dementia so would not have understood what they may have been sending her
2. They took a very long time to respond to me when I asked them
3. They have computer systems showing that they have an elderly customer with a high balance – they could have been pro-active (she might have moved the money into fixed rate bonds)
4. None of the statements they send out state the interest rate so she could not have guessed how low they were

I am decently hopeful that I may get something because I think the treatment is shabby. I am thinking of starting by writing a gentle (i.e. not stroppy) letter but really could do with some advice about suggested tactics, inside knowledge of C & G complaints processes and similar things? Should I start at the top of the Lloyds TSB Group or right down at branch level? Should I meet with a branch adviser first? Any ideas…all suggestions welcomed!

Reaper

1 She has dementia so would not have understood what they may have been sending her

Very few banks write to their customers to tell them when the rates go down, so I doubt she missed out on anything.

2 They took a very long time to respond to me when I asked them

Worth a try

3 They have computer systems showing that they have an elderly customer with a high balance – they could have been pro-active (she might have moved the money into fixed rate bonds)

Again, banks don't do this. They want people to leave their money in low paying accounts. That's the whole point of the headline "bait rates" which start dropping after a year. I doubt you will succeed with this argument many where others have failed.

4 None of the statements they send out state the interest rate so she could not have guessed how low they were

Again, normal behavour for almost all the banks. See Martin's campaign to get it shown on statements.

Cook_County wrote: »

I have no idea if I will succeed but I would like fair compensation equal to lost interest.

Maybe if they have been very slow replying you could argue lost interest as it prevented you switching, but on the other points disgraceful as it is that is normal practice for a bank and a sizeable portion of the population are suffering the same thing. Therefore I fear arguing they were taking advantage of her dementia will not work.

kinglewis

Sorry to hear the news about your aunt and I hope you are successful in your quest.

One thing to consider though, how do you know that the branch havn't contacted your aunt asking her to go in for a review? She may not have known or remember the conversation?

Cook_County

The capital is safe so that is good - I don't know if I will have any success but my role is to do what is in her best interests. She used to write lists of all of her savings and interest rates so would have changed things around when she was better. I can still move the money about so all is not lost - asking to be treated fairly will be interesting and probably very slow!

Stompa

I'd agree with Reaper, item 2 is the only one where you might have a case, and even then I'd imagine the chances of any action are almost non-existent.

That's the way financial institutions work I'm afraid.