Nationwide and Euro Transfers saga.

kilrail

I need to recount something that happened when I had to transfer over €100,000 to a Spanish bank account. I had opened an account with Currencies Direct as I understood they would be more competitive than using your own bank, in my case, Nationwide.
However, when I called in at the branch to transfer cash out of an ISA, I enquired as to what rate I could get, and what mechanism I could use to transfer this amount.

I was surprised to be told I would get the commercial rate as shown on the screen. I specifically asked if this would be the same rate as I would get if I put my debit card in a Spanish ATM and was told Yes definitely. I was also told I could use my internet banking to make a swift transfer instead of using the branch,

Being the sort of person who checks and double checks when dealing with this type of once in a lfetime transaction, I decided to call the Nationwide Customer Services 08457 302010 and ask the same question. Once again I was assured that I would get the commercial rate and I mentioned the amount was over €100,000. I asked what was the actual rate I would get and was referred to internet banking where there was a link.

I logged on and had to use the card reader to get to the swift page and indeed there was a link to "indicative rates" I entered my details for Sterling to Euros and was given a rate of €1.1762 which was around the rate on BBC as a commercial rate. However the link mentioned a charge between 1% and 5% by your bank so once again I phoned Nationwide and asked what charges would apply. I was told the only charge would be £20, I took the opportunity to ask this advisor what rate I would get and once again I was told I would get the rate shown on the link.

At this point I decided I had dithered enough and made the transaction that evening, fairly confident I had beat Currencies Direct and wondering why I had bothered opening an account with them. I had already used them previously to transfer €3,000 at €1.157 on the same day I drew out €300 with my Nationwide debit card at €1.171.

The next morning I coincidentally received a call from Currencies Direct asking if I wanted to make a transfer as the rate was moving against me. They offerred €1.1711 but I explaind I was given €1.1762 by Nationwide and had already done the deal. I was put through to their main dealer who implied that I must have been mistaken and that he had come across this on many occasions where banks had given out wrong rates over the phone. He asked if I had it in writing and if not it would be put through at a lower rate. He would hold the rate for 30 mins.

Again doubt was sown and so foir the 4th time I phoned Nationwide and surprisingly got a completely different answer. I was told the current rate I would get on swift transfer would be around €1.13. I explained that I had already checked with 3 other Nationwide staff and was he certain. He said he had already processed one that morning. I immediately asked him to cancel but he said I could only cancel over the internet by sending a secure message.

Knowing how unreliable the messaging service is, I moved the money out of that account so it could not be transferred and sent the message as well.

I then organised the transfer via Currencies Direct and have started a complaints procedure against Nationwide.

However, I have just checked their website today, and I believe it is still extremely misleading if you are considering using their swift method to transfer to a foreign bank account. The rate shown on screen for Euros is €1.127337 which is obviously not the rate you would receive today, but in the absence of any other rate or any disclaimer to mention large transfers, then you would expect to receive it.

However, it could have been worse - I could have used Crown Currencies!