Santander-changing the terms and conditions?

sunshine55

I have p.o.a for my mothers money. She is mentally very alert but finds money tiring. I moved £50000 into 2x 2 year fixed rate bonds. one in Abbey and one in A and L. Both giving good rate of return.

This was last year in June. I checked that the A and L website stated that althought the plans were for both ~Abbey and a and l to come under the Santander umbrella, any investments before the official date would have the government £50000 protection.

Now they have changed the terms and conditions and regaled on the previous statement. Any investments with any of the group such as Bradford and Bingly, a and l abbey and the like will only have a maximum of £50000 guarantee. As I am nearly a year into the fixed rate bonds, what do I do? When I phoned A and L they admitted that the rules had been changed and that as they are one of the worlds largest banks, what was I concerned about.
Can banks just change the terms and conditions. If so what is the point of them. any one got any expertese in this area

oldfella

I would have thought the T&Cs that would apply would be those when you took out the bond. If they maintain that is not the case, then they should allow you to terminate the bonds without loss. If they argue take them to the FOS.

anamenottaken

Did you put the money into two bonds each of £25K (the £50000 you mention in OP) or do you mean £50K in each? Is the interest paid annually and into the accounts themselves or externally?

If it is £25K in each and the interest is paid into the account annually or at the end of the two years, then even now the gamble is just with the interest.

opinions4u

sunshine55 wrote: »

This was last year in June. I checked that the A and L website stated that althought the plans were for both ~Abbey and a and l to come under the Santander umbrella, any investments before the official date would have the government £50000 protection.

The protection is provided by the Financial Services Compensation Scheme. Not HM Government.

Now they have changed the terms and conditions and regaled on the previous statement. Any investments with any of the group such as Bradford and Bingly, a and l abbey and the like will only have a maximum of £50000 guarantee. As I am nearly a year into the fixed rate bonds, what do I do?

Firstly, don't lose sleep over it. The banking picture is more secure than it was and HM Government has shown a willingless to cover anything not backed by the FSCS (e.g. the collapse of Icesave and Bradford & Bingley).

When I phoned A and L they admitted that the rules had been changed and that as they are one of the worlds largest banks, what was I concerned about.

As I often tell my wife, size isn't everything. Big banks can collapse, just as small ones can. So claiming security on the basis of size is nonsense. That said, I refer you to my previous answer. The risky time for bank security has passed.

Can banks just change the terms and conditions. If so what is the point of them. any one got any expertese in this area

If a bank changes terms and conditions, they usually need to offer a penalty-free way out of a product at the same time.

I suspect that FSCS protection does not form part of the T&Cs though.

But seriously, don't lose sleep over it.