MSE News discussion. Nationwide kills cheap overseas spending

SaveTheEuro

magpiecottage wrote: »

Some things to ask when complaining to Nationwide:

1) "You told us on television in 2008 that the purpose of charging extra for foreign currency is a 'tip' and used to 'kit out the staff room like a playboy billionaire's yacht' - that is not is a misuse of members' money".

(Actually, if they want a tip, it is that next time I go off to where the sun shines I won't need my FlexAccount so they can put it somewhere where the sun doesn't shine!)

2) The whole point about their television campaign was that Nationwide considered the foreign currency charge unfair. The FSA has a set of principles for all businesses to follow as part of its rules.

Principle 6 says, "A firm must pay due regard to the interests of its customers and treat them fairly." It is therefore breaching principle 6 by doing something which it has publicly acknowledged that it believes to be unfair.

3. Even if its competitors do not agree with that view, because it believes it, it has to act in accordance with it because of Principle 1, which says, "A firm must conduct its business with integrity".

These principles will, I think, need to be relied on in the pursuit of a complaint against Nationwide because they show that this is not simply a matter of exercising commercial judgement.

There is a counter argument in principle 8, which says "A firm must manage conflicts of interest fairly, both between itself and its customers and between a customer and another client."

In theory this could be used to argue that some customers are taking advantage of the free overseas withdrawals but using others for general banking.

I don't think that works because the free withdrawals simply reflect the fact that you happen to be in another country. It is the same service that you would get in, say part of the UK, and available to all members.

By contrast, the insurance has a cost which must be paid somehow and one way or another all customers will pay for it even if, for whatever reason, they do not travel or do not qualify. So the new arrangement is, in fact, arguably a breach of Principle 7 whereas the old one was not.

You have hit the nail on the head. The Nationwide is introducing a fee which the society itself believes is "unfair" and cannot be justified. The stench of hypocrisy is overwhelming.

RobertinHerts

will-in-estoril wrote: »

One of the problems is how disingenuous to loyal members Nationwide is being.

I am all for stopping loopholes in respect of overseas' withdrawals. However, Nationwide really has gone and thrown out the baby with the bath water on this issue and I do believe that it has underestimated the strength of feeling of members.

It is interesting that Chris Rhodes, the 'brains' behind this move, came from A&L, whose current accounts are regularly rubbished in this forum and elsewhere.

My relationship with Nationwide has spanned four decades. According to the Daily Telegraph those of us who use the flex account as our main account number 1.25 million. Our voices deserve to be heard.

I've just written to Chris Rhodes, thanks for the details, listing my personal complaints which each apply to many thousands of members.

I see that there is a
Suggestion form which members might like to fill in.


Robert

Fortyfoot

peterdowd wrote: »

Now that Nationwide are charging for Cash Withdrawals abroad, does anyone know what the best alternative is.

I know that A&L (now Santander) do not charge for cash withdrawals in Spain at Santander branches.

This could be the answer, but you would have to be eligible, see below in red. May be you could get away with opening an ISA?


"It’s easy to switch to a Santander current account.

It is important that you feel confident about switching and what is involved, so please click here to read more about our free Account Transfer Service.

Your interest rate and charges information

You will earn 5.00% AER /4.89% gross (fixed) for the first 12 months on balances up to £2,500 when you pay at least £1,000 into your account each month. After 12 months you will earn 1.00% gross/AER (variable).
For balances over £2,500 or in any month you cannot pay at least £1,000 into your account, you will not earn any interest.
Your Overdraft interest rate will be 12.9% EAR typical (variable) (overdrafts are offered depending on your circumstances) or 19.9% EAR in any month you cannot pay at least £1,000 into your account.

Please be aware that there are no fees from Santander for using your Visa Debit card abroad providing you select to have the cash withdrawal or transaction processed in the local currency. Choosing sterling means the retailer or bank will handle the currency conversion and may apply a conversion fee and/or a foreign usage fee.
Other cash machine providers may charge a fee for using their cash machine.

More reasons to apply - Includes exclusive access to Santander Zero Credit Card

Santander Zero Credit Card is the only credit card in the UK that charges you zero usage fees whenever you use it. Plus, there’s 0% interest to pay on balance transfers (see note 3) for 12 months and a 0% balance transfer fee (see note 3) as a new current account customer.

Qualifying criteria

You are eligible if:



Santander ISA Managers Ltd, Santander Portfolio Management UK Ltd or Santander Unit Trust Managers Ltd; and

• it is your main current account and you pay in a minimum of £1,000 each month; and
• you switch your current account using the Account Transfer Service (new current account customers only).

Existing Current Account customers can upgrade to a Zero Current Account (excludes Instant Plus Account and Basic Account. To do this you will need to call us on the number above or visit your local branch.).
You must be at least 18 years old and be living permanently in the UK..............."

Fortyfoot

Marcusp

when you pay at least £1,000 into your account each month.

quick Q about Santander, can that £1000 be from 2 people and 5 different sources, all pensions?

And could it be a joint account?

Olipro

Marcusp wrote: »

quick Q about Santander, can that £1000 be from 2 people and 5 different sources, all pensions?

And could it be a joint account?

they don't care how or where you get it in from, just that you do get it in.

apt

Gamegal wrote: »

Just realised we've a joint A & L Premier Direct a/c which is funded with £500 a month to enable us to have annual European travel insurance through Fortis. We have a debit card each. Are these the ones we can use to receive euros at ATMs in Spain without charge at Santander branches?

Does anyone know what the rate's like compared with what we currently get using our N/wide Flex debit cards? After 1st November I realise that will hardly matter as we'll be paying £7 (£1 + 2%) each time we withdraw £300's worth of euros.

Yes they qualify, but only if you fund them with £1,000 per month. As they are visa debit cards the rate should be the same.

Dirty_Dick

Olipro wrote: »

they don't care how or where you get it in from, just that you do get it in.

You can set up a DD to tranfer £1000 in , and on the same day a DD to tranfer £1000 back to other account, similar to what I do with mt Lloyds TSB vantage accountS.

unwina

northernstar5 wrote: »

There is now a group on Facebook -

'Nationwide - we want to keep free use of Flexaccounts in Europe'

Let's all sign up!

so I just joined this and with me there are now 4 members, mind it was a good job my daughter was home as it took me nearly 15 minutes to find the group, well i didnt really find it she did ... damned technology whizzy wig stuff ;-)

now that there are 33% more members in this group I'm sure that NW will be listening soon ;-)

I won't hold me breath though I'm expecting waiting the board to say we've listened to our customers and are now providing what they said they would want in a forward thinking bank, oops sorry building soc. . ;-)

lisyloo

Spain, where I use it, is within the Visa European region!

Anyone know where I can find the extent of this region (I have tried googling).
We are going to Egypt in November.
In some contexts e.g. travel insurance, Egypt is included as Europe and not worldwide.
Or if anyone knows already, that would be great.

Olipro

it applies only to Visa Europe which extends only to EU countries, Egypt is not in the EU, therefore 1% commission applies until the new charges in November.