MSE News discussion. Nationwide kills cheap overseas spending

luci

When I called them on Saturday, I was told they had to give 60 days notice.

Dustykitten

I'm going to ask the best way to complain whilst I'm in the branch tomorrow.

Olipro

luci wrote: »

When I called them on Saturday, I was told they had to give 60 days notice.

the agreement says 2 months rather than 60 days which for the purposes of this issue makes 1 day's difference.

We may make changes to the terms in Part II of this agreement and we will give you not less than two months’ personal notification before the change takes effect. You have the right to close or switch your account without charge before the date any changes come into effect. If you do not close your account you will be treated as having accepted the changes.

Anyhow, that essentially means that all customers must be personally notified of the change before Sept 1, generally speaking of course it's good practice to send letters out a month in advance of the deadline date, therefore the fact they have now decided not to send them is raising some very interesting questions

glider3560

Here is a link to the leaflet explaining the changes and modifications of the T&Cs: http://www.nationwide.co.uk/pdf/current_account/P1112.pdf

I don't like the look of any changes. The new overdraft charges look more confusing (especially with the new names like reserve). Also don't like the fact the SWIFT and CHAPS charge has been increased, to presumably subsidise overdraft costs.

NickTipping

Just to sound boring, we too have been long term 'proper' customers with salary going in and several savings products held for several decades. We've been avid supporters in the past, but we've also seen all the advantages being erroded over the years, and I've felt that they've been struggling for a while now. It's probably only laziness that's kept us with NW. I hate to say it, but the free travel insurance is almost certainly just a sweetener. It will disappear. I hate NW badged products. They're not core business and they will drop them on a whim. Many years ago, we used to have their pet insurance, which they decided to drop just before one of our dogs was eight years old. If anyone knows what it's like getting insurance for a dog once it reaches eight, you'll know what a panic we were in. However, not to worry, good old NW had found an alternative insurer for us who would guarantee to take the dogs on. It turned out to cost twice as much. Suffice to say, we sorted out our own replacement (just in time) and vowed never again to use NW fringe services.
We buy our own travel insurance which suits us exactly, and one I know will be available year after year if necessary. When all the fuss dies down, I bet this NW perk will disappear, just like the pet insurance did. It's definitely time to move to another provider. I hate writing letters, so does anyone have an email address to send a complaint to? Thanks in advance.

marklee

Interesting.

Just had a phone call from Nationwide in response to my complaint yesterday.

The representative explained the rationale behind the change (which was repeating the reasons already picked over here a million times).

I outlined that I felt that it would be more appropriate to have the fees removed where people pay in over £750-£1000 a month, to deter 'abuse', but to retain 'genuine' customers - the representative said that a lot of people had been saying that (!) and he would collate it into a feedback file being prepared.

The representative said that they recognised that some customers would leave but ultimately that they felt that it was still an appropriate charge to introduce. Whilst in the round they may lose some "high value" customers "such as yourself", they would also lose many of the people who abuse the accounts, which overall would mean that the society would be better off. In particular, he said that it was very important that the bank introduce the £1 ATM fee, because the bank pays fixed fees for overseas withdrawals, and they need to incentivise people to make fewer, but higher value ATM transactions overseas. He claimed that in general the overseas abuse of Flex Accounts is a massive issue for the society, which had got progressively worse since it was introduced ten years ago... and that although it was essential, it had been "heartbreaking" for him today speaking to some people who were going to be very badly affected by the change, such as pensioners retired on the Med.

The representative spun the line that "Nationwide would reward loyal customers in future" (pfff) and to try and retain my custom, suggested:

- A NW credit card (still fee-free overseas)
- If I move to Metro Bank, that I retain my NW current account and just use the MB account when going overseas.

I do find it quite interesting that they are preparing an internal report based on the feedback to the change - and that they have acted so promptly in responding. It does make me wonder if they're having second thoughts, although the representative didn't hint at this at all.

KTF

Any account that has a minimum payment a month can be worked around by transferring money in and out so whilst that might make a few people close their accounts, the bulk of the 'problem' is going to remain.

They could also say £x a month plus x number of Direct Debits coming from the account as well but then it starts getting complicated and people might meet one but not the other, etc.

Bottom line, I will be amazed if they change their mind about this.

Thanks to the wonders that are regular savers I have current accounts at pretty much every bank in the UK but rather than move my account I will just get a Halifax Clarity card and use that instead. Maybe a Metro bank account as well the next time I am in to London and the queues at the branch are not crazy.

Olipro

if they pay fixed fees for cash withdrawals, the fact they want 2% + £1 is an insult, since it's fixed, why not levy 0% + the fixed fee, utter cheek.

Olipro

KTF wrote: »

Any account that has a minimum payment a month can be worked around by transferring money in and out so whilst that might make a few people close their accounts, the bulk of the 'problem' is going to remain.

not at all, you simply require they maintain a minimum average balance as well, that way people who whip the money in and out won't be able to do so, those who are paying money in and using it for their day to day expenditure will remain unpenalised, even if they are someone who cleans themselves out at the end of the month.

They could also trivially add exceptions for people who use other products, such as £xxx in savings or a credit card. Really, it's all computerised, the number of automated checks you can implement to make this system far more reasonable are numerous.

davidgmmafan

"The new overdraft charges look more confusing (especially with the new names like reserve). Also don't like the fact the SWIFT and CHAPS charge has been increased, to presumably subsidise overdraft costs."

I too am concerned about this, not because it affect me directly, but because in the (long winded) test case at one point it was pointed out that Nationwide's terms and conditions relating to overdrafts were the clearest of the parties in the test case. So once again, where Nationwide stood out as better than the rest, they move to bring themslves back into line with the herd.

People who just use the account overseas and say they are closing it Nationwide won't care about as that is clearly the reason behind the changes. Those, who are the majority looking at posts here and on TIM, are long standing memebers or members with substantial balances. Them leaving must be a blow to Nationwide.

There are many ways round this issue, I fail to understand if mere customers like us can see this why the highly paid boffins on the board didn't. My best guess would be that they don't give a !!!! so long as those fat pay cheques keep rolling in.

Regarding feedback they'll certainly see a spike in complaints, which will further damage thier reputation. As usual the reason given are non-sense and don't stack up. Once this is gone there are no perks, so more people will leave. Nobody will join, so then what? Hike charges more making a more vicious cycle of decline? Its a complete joke.