Natwest/RBS 2.85% esaver

Devonjem

Update - Natwest has now (1) accepted that the website, at the end of September, did state 2.82% net (despite Sheehy's email to the contrary), and (2) continued to argue that the website did refer to bonus interest not accruing straightaway.

In regard to 1, they are arguing that they will not pay 2.82 for the whole year on the basis that the rate is variable. To me it seems unreasonable to use that as an excuse to lower the rate from 2.82 to 2.28. I thought that a variable rate can be lowered for all customers to reflect the bank's costs - not singling out an individual customer and lowering his rate due to the bank's own mistake.

In regard to 2, this is crazy. Initially they said the correct info was in the Common Questions page. After I had pointed out to them how idiotic that argument was, they appear to have dropped it and are now arguing that the correct info was in the Rates and Important Info page all along. they have not stated where on that page and what it said. of course as at end of September, that page did not state this information. What makes it worse is that i have an earlier letter in which they admit the page was changed to make things clearer.

I am now preparing a FOS complaint.

miller

Effectively then to protect themselves from this behaviour, customers would be advised to scrape the entire website of a financial institution (including all .pdfs, T&C's in awkward places, pop-ups etc.) before taking out a product.

This kind of goalpost moving makes it hard to build a FOS complaint.

SimonM_2

Devonjem wrote: »

In regard to 1, they are arguing that they will not pay 2.82 for the whole year on the basis that the rate is variable.

Explain that you aren't asking for 2.82% but that you are asking for the difference between the quoted rate in the leaflet and the lower rate, and that difference remains the same no matter what the variable rate changes to - for reference, it's 0.54%

I've been paid the difference on my account, on a fairly reasonable amount of money, and other posters on here have been too, so you should also get the same.

To me it seems unreasonable to use that as an excuse to lower the rate from 2.82 to 2.28. I thought that a variable rate can be lowered for all customers to reflect the bank's costs - not singling out an individual customer and lowering his rate due to the bank's own mistake.

If they are saying that they are varying the rate, then that means they are are lowering it and doing so makes this a material change in the interest rate (due to the amount it would be changing), and on the e-savings account that would mean they have to notify you personally not less than 14 days before the change comes in to effect (and also of course would have to pay the higher rate up until that point, which they've not been doing). See section 11.2 of the Terms and Conditions for this information about interest rates.

I am now preparing a FOS complaint.

Good luck. Please keep this forum post updated with progress. Also ensure that you get a "final response" from NatWest (you'll have to ask the person handling your complaint for this), they will try to say that you don't need one, but insist on receiving a Final Response.

Today I received a response from NatWest in relation to my complaint about this, and whilst I won't cover all of the details, they have admitted that the 2.89% AER is not achievable in the first year, and "this was one of the problems with the information originally contained on the website that was not very clear" (in other words the account was mis-sold and completely misleading). NatWest are also claiming that the website has been amended to show that AER is applicable for the bonus period only, and have quoted the end date of the bonus period as November 14th 2011, which doesn't match up with the date that I am expecting.

NatWest are also saying that they have corrected the brochure, but aren't sending it out to customers as they sent an email instead. They say that if the terms and conditions of the account change then they will send out the brochure to all customers. They have also admitted (without saying the words as such) that they ignored my request to raise the complaint to Phil Sheehy, Head of Savings, and I'm not at all happy about that. He appears to have sorted out H176's, without lengthy delay and messing about, so why not the same for mine?

So as expected I'm not satisfied, the complaint isn't resolved and I'll be asking for a Final Response. This is about so much more than just a printing error (three) in a leaflet, I feel the whole account has been mis-sold due to the multiple errors and misleading information. Next step the FOS just like yourself Devonjem.

miller

Devonjem wrote: »

I am now preparing a FOS complaint.

Slightly OT, but I am also "building" a FOS complaint against the Halifax for their ISA promises.

"We will pay interest from day 1 of receiving your transfer form".

Except when it doesn't suit them.

Good luck everybody. May the best customer win.

mrploppy

I haven't read the whole of this thread so forgive me if I've got hold of the wrong end of the stick.

I have one of these 2.85% AER e-Saver accounts, with a substantial amount of money in it. When I signed up, I knew exactly what I was going to get.

1. I tried to open the account before the end of Sept, but because I opened it as a joint account and my wife didn't have internet banking they couldn't verify it with her until early October (in retrospect a mistake on my part). So the account wasn't actually fully "open" until early in October. Therefore, I knew from the T&C's that the bonus interest wouldn't start accruing until 15th Nov, and that the first payment of bonus interest would be the end of November.

2. I tend to only ever look at gross AER figures when looking for savings accounts. Anyone with GCSE maths can work out the net rate from that. I find it hard to believe that anyone seeing 2.85% AER gross would believe they were going to get 2.82% net. It would have been plainly obvious to me that that was a typo. Were people expecting to get 2.82% net? Is that what all the fuss is about?

neilsedaka

(1) I don't think any joint accounts applied for in September were opened immediately, unless anyone knows different? The website on 29th September said "Are you an existing NatWest Online Banking customer? We’ll open your e-Savings account straightaway." That did not happen for joint accounts. The website also said "Includes a bonus of 1.85% Gross for the first 12 months", proved to be another error.

(2) 2.82% net was advertised and therefore expected even though it may have been an obvious typo. Yes, 2.82% net was confirmed to me in writing on 29th September. How a leading bank can launch a new product without double checking that all was in order is unbelievable, especially as multiple errors were made. This is not "Helpful Banking". NatWest should however be commended for meeting claims when pressed.

alanq

neilsedaka wrote: »

The website on 29th September said "Are you an existing NatWest Online Banking customer? We’ll open your e-Savings account straightaway. That did not happen for joint accounts. "

Not just joint accounts. As an existing Online Banking Customer I applied on 29th September but the account was not opened until the beginning of October. (From what I have read in this thread I was not alone.) I wasn't bothered I just waited until mid-November before increasing the balance beyond £1.

nilrem_2

alanq wrote: »

I wasn't bothered I just waited until mid-November before increasing the balance beyond £1.

I did the same myself, I found this new account quite useful as I already had an existing bonus esaver on which the bonus was due to expire on 31st Jan 2011, so I opened the account in October and transferred the cash in the other esaver account over in Dec 2010.

I now have 3 esaver accounts, one with a 'useful' sum saved and 2 others with zero balances, I must get around to closing the defunct ones.

Devonjem

SimonM - thanks for the info. Did Natwest pay you a lump sum to cover the interest difference of 0.54% for the whole year?

cheers.

SimonM_2

Devonjem wrote: »

SimonM - thanks for the info. Did Natwest pay you a lump sum to cover the interest difference of 0.54% for the whole year?

cheers.

Yes on the amount that was in my account at the time, with the promise of paying the difference on the additional amount at the end of the 12 months (although that assumes I'll remain a NatWest customer, less likely by the day)