Building Soc forced removal of rights.

talexuser

I have an old branch based account with Coventry Building Soc for many years which was a 90 day account with enough balance for bonus rights.

They have now sent a letter out saying they have "rationalised" old accounts and are moving the money to a instant access account and in the small print for "conditions for bonus payment" have wriiten "not applicable".

Is it legal for a society to move you to an account removing your mutual owners rights like this?

opinions4u

You've missed the point.

The change of account in no way affects your membership of the society or any potential demutualisation payment.

The new account will have no bonus element to its interest rate, hence "conditions for bonus payment" don't apply.

That said, when this sort of thing happens it almost certainly means that your money is in a poor paying account.

le_loup

........ and the chances of getting any sort of windfall from a building society are very close to zero!

talexuser

thanks for the replies. I realise that there will be no floating for the next 30 years.. or until everybody has forgotten about the fiascos of Rock, Bingley etc... or the next boom... and that the latest mergers of societies has also given up on any payouts.

Maybe I misunderstood the bonus line because this is a standard branch instant access account with no mention of bonuses anywhere in the interest rate bumf etc, so assumed they were talking about membership rights.

Your point about poor paying rates is a good one because the main promise is that the interest rate will never be more than 3% below bank base rate !!!! Wow, what an advantage :rotfl: