MSE News: Nationwide revamps Flexaccount with travel insurance

SallySunshine

Don't forget to vote on the other thread re withdrawals.

Ulbrecht

Oh for flip's sake, Nationwide.:mad:
I'm another long-term Flex account holder (23 years) thanks to it always being being a straightforward current account without unwanted frills. And now you go and follow A&L and whoever else with this silly travel insurance.
If I want travel insurance, I will (and do) take out my own with a company of my choosing and at a level of cover that suits me and my family. All I want from you Nationwide, is a current account.

Why not ditch the travel insurance and use the cost of running it to cover the the cost of withdrawals abroad?

I'm really not amused. Time for a change I think...

choc_mouse

Anyone received their letters yet? The website says existing qualifying customers will receive letters by the end of August - that's 3 working days left.

In any case, providing a service that no one really asked for seems a bit pointless. I already have comprehensive, world wide annual-multitrip cover, with excess waiver, for less than £80. So, could I just refuse this perk and ask for the £80 instead? I'd happily continue using Nationwide if they gave me that option.

Gallopwire

I have been a customer of NW ever since I came to this country and utterly upset about this.

Especially if you read this in the press:
"Nationwide has been frustrated by the number of customers who use the FlexAccount purely for travel purposes and who maintain their principal bank account elsewhere. Of the 3.5 million people with a FlexAccount, only 1.2 million use it as their main account."

Why punish the 1.2 'honest' users as opposed introducing constraint on who qualifies or doesnt.

Whilst it is upsetting, the question remains: what are the current account alternatives?

Does anyone know if these charges will also apply to the credit card?

FJ

Ulbrecht

Yes, I received the letter today, which is how I found out about these changes.
The letter summarises it all under headings
- Qualify for FREE European travel cover
- Using your card abroad
- Changes to overdraft charges
- Other changes
- More exclusive just for you
Enclosed are two leaflets. One goes into detail about the changes and the other describes the travel insurance cover (in very small print!)

O_Miserly_one

Another 23 year relationship with Nationwide is about to end here. I have sent a couple of messages to their online message centre. They are expecting a lot of flack from customers, because they have set up a category heading specifically for the changes to the Flex Account!

Now, someone on the board here mentioned that of the 3.5 million account holders, only 1.2 million use it as their main account with the rest using it just for the travel perks.

Here's the plan. All of the 1.2 million simply run down their accounts to the minumum to keep it alive, transfer all regular payments in and out to a new account (First Direct offer £100 for opening one with them) and leave Nationwide with a legacy of servicing 3.5 million accounts with just a few quid in them. Ha. Complacency bites back. :rotfl:

SallyMC

Very disappointed with Nationwide - just got my letter today. Spent £1 on a Skype call (no landline number so had to use the 0845) to query the Travel Insurance criteria (we go to our 'hovel' in Crete for a couple of months so will not be depositing £750 whilst we're not working & away) - had to hang on for 8.55 minutes & still no reply, so emailed.
And being charged to withdraw money from our flexaccount when we're in Crete, despite the fact that we've held the account since 1989 and it's our main one. My way round this charge? To electronically transfer money from the Flexaccount thru' my currency exchange account (£ - euro), and into my Greek bank account and ATM out, that way no charge. Very straightforward & great service from the currency exchange account - will pass on the link if anyone wants the name via a pm. Probably not viable for 2 week holiday people and/or small amounts but for regular travellers who go to the same destination it works fine.

malc_b

I wonder what will happen at the next AGM? There is no reason to close a flex account just because it now useless. And a good reason to keep it open just with £1 in to a) punish NW, and b) be able to vote no confidence at next AGM.

Also, why the focus on current account activity? What about members that have savings with NW but have a current account elsewhere? Are current accounts that much of a cash cow?

O_Miserly_one

Well, here is a response from Nationwide customer Services received today. Sorry if it's mixed both threads together but it keeps it in context. My comments are in curly brackets {}:

I am sorry to hear of your dissatisfaction to the new changes regarding our current account.
We do appreciate your loyalty to Nationwide and are constantly striving to find the best possible ways to deliver real value to our members. Commission free card use abroad has been a long standing benefit of Nationwide’s FlexAccount but, even though it has been available for more than ten years, only around a third of our current account holders have used it each year. Over time we have found it has provided a huge benefit to a tiny minority of our current account members, such as regular business travellers.
{Er - one third of all customers = approx 1.1 million people. That's a small minority then. 1.1 million x new charge of £1 per transaction x 1 transaction per year each is now an obviously significant £1.1 million}.

At the same time it has benefited others by only a modest amount and it has not benefited the majority of our current account members at all. It is simply not an equitable way to share member value.

However, the majority can benefit from free travel insurance if they make FlexAccount their main account and the value they would receive will be shared more equitably.
{ Did anyone else spot the irony of this statement in the light of the comments above? !!! If only 1.1 million are taking advantage of the commission free card usage per year, then the majority of the rest (about 2.4 million) don't travel much. Therefore the majority of the remaining account holders will have a totally useless benefit!}

We have a responsibility to manage the business in the most prudent and sustainable way for our membership as a whole and a key part of our corporate strategy is to encourage more members to use their FlexAccount as their main current account. We believe the free multi-trip travel insurance is more likely to encourage people to use their FlexAccount as their main account, particularly as it covers holidays booked in the UK as well as in the rest of Europe.
{ See previous comments! How will this encourage people who do not travel to do so now that they will have to pay a premium for withdrawing their cash and making purchases when they get there?}

The future introduction of 2% commission for debit card use abroad and the £1 cash withdrawal fee also have to be seen in the context of the charges made by our competitors.
{Why? Nationwide are "Proud to be Different", aren't they?}

Nationwide’s planned charges are still lower than those made by the majority of our high street competitors. Very importantly, the changes only apply to FlexAccount customers and not Nationwide's credit card customers. Nationwide credit card customers will continue to be charged a 1% fee outside Europe and no foreign usage charges within Europe. {I'm speechless}

I do understand your concerns and I acknowledge that you are not alone in really appreciating the existing arrangements. I have tried to give you the fullest possible explanation of the rationale behind the changes. We did not take this step lightly, but we have to put in place benefits that are more equitable, prudent and sustainable.

I can confirm that the exchange rate is set by VISA and Nationwide have no control over the rate applied. {I asked what loading they place on the exchange rate in addition to the fees. First Direct apply +2% but apparently Nationwide have no control over this}.

You are able to claim on the insurance as you are automatically covered from receipt of the eligibility confirmation letter providing you also meet UKI criteria to be eligible which considers aspects such as age and existing medical conditions. Please contact UKI if you require further information on the travel insurance by calling 0845 246 1692 (8am-8pm Monday-Friday and 9am-5pm Saturday). {I asked if I can claim on this insurance, if necessary, in addition to my existing insurance. I take this as a "yes" then}.

Kind regards, xxxxx xxxxxxx, Customer Consultant, Internet Services

Comments?

apt

malc_b wrote: »

I wonder what will happen at the next AGM? There is no reason to close a flex account just because it now useless. And a good reason to keep it open just with £1 in to a) punish NW, and b) be able to vote no confidence at next AGM.

QUOTE]

If you want to keep an account with Nationwide to vote against the board, which I will certainly be doing, you need a balance of at least £100 to have a vote.