Can my bank change my account terms retrospectively?

theyellowlizard

Would appreciate any guidance on this one from people who know what they're talking about!

I've had a letter, dated 2nd November, from my bank (Co-Operative), to say they are changing my account from a Student Account to a Current Account as of 30th October (ie, two days before the date of their letter).

They've done this, and because my account was in my (previously free) overdraft, they've charged me a £15 arrangement fee. I'm also subject to the standard interest charges until/unless I can get my account into the black.

Now, I have several issues with this:

1) I'm actually still a student (I'm on a PhD course rather than an undergraduate course, which takes longer to complete, so Co-Op can be forgiven for the error).

2) They surely can't be allowed to give me NO notice at all, can they? To tell me restrospectively seems pretty underhand, and I'd have expected it to be unlawful.

3) No one is answering calls at their student helpline, and no-one else in the entire bank can assist me with the problem, apparently.

Any advice? I'd be really interested to know whether Co-Op are legally entitled to do this.

I should add, Co-Op are generally excellent, but I'm frustrated at how badly they've handled this issue so far!

Olipro

no, they are obliged to give prior notice when the terms are not in your favour, I believe it's at least 30 days, but in any case, this is pretty clear cut as being retrospective, I would take this to the ombudsman if they won't cooperate

Chadsman

I once had a similar issue with RBS. I contacted them and they reinstated the interest free overdraft for another 3 years and (eventually) refunded the charges.

theyellowlizard

Fab, thanks for that info. Any idea of the regulation(s) I'd need to quote when lodging a complaint?

Voyager2002

Two issues:

I suggest you write or send an electronic message to whoever is responsible for student accounts, to confirm that you continue to be a student. I am confident that they will sort things out and allow you to continue to have a student account until you complete your PhD;

However, I suspect that the general terms and conditions for student accounts stipulate that they change into ordinary current accounts at the end of the September following the end of the account-holder's course. It would then be acceptable for the bank to send a letter shortly after the event confirming that this has happened, since the warning of the change would have been contained in the terms to which the student agreed when opening the account.

Chadsman

I would state the facts as you have above and as you are still a student that they should reinstate the interest free overdraft and waive the fees- also they are supposed to give at least 30 days prior warning of changing the T&Cs. I personally would not threaten them with the ombudsman at this stage- I try to keep one shot in reserve- if another letter proves necessary then ask for a letter of deadlock so you can approach the ombudsman for a ruling.

opinions4u

theyellowlizard wrote: »

1) I'm actually still a student (I'm on a PhD course rather than an undergraduate course, which takes longer to complete, so Co-Op can be forgiven for the error).

As they're not psycic, I'd suggest telling them.

2) They surely can't be allowed to give me NO notice at all, can they? To tell me restrospectively seems pretty underhand, and I'd have expected it to be unlawful.

What did the original terms and conditions say regarding the period of time that it would remain the student account? Have they complied with this? If so, they've done nothing wrong. If it's a variation to terms and conditions that you haven't previously agreed to, I believe they have to give you 60 days notice.

3) No one is answering calls at their student helpline, and no-one else in the entire bank can assist me with the problem, apparently.

When you do manage to make contact with them, explain the situation calmly and take it from there. Hopefully you will get the student status extended and the fee refunded.

I'm frustrated at how badly they've handled this issue so far!

You forget. Not them!

noh

The terms and conditions are here:-
http://www.co-operativebank.co.uk/cfscombi/pdf/student_current_account_terms_and_conditions.pdf

The relevant section can be found at the end of page 9.

"4. At the end of one year after your final year of study your account will convert automatically to a current account and these additional conditions 1-4 will no longer apply."

I suspect that when you first applied for the account you were an undergraduate and you informed them when your degree course would finish. It is now 1 year since then.
They have not changed the T+Cs of your account. They have done exactly what was stated.
They would not know you are on a PhD course unless you have informed them and told them of its duration.

theyellowlizard

Thanks for the info.

I moved my account to them in 2008, after I'd started my PhD course, and they were aware of my course of study when I opened the account. As I said above, I can quite see how they might get confused as it's not a standard course. But it doesn't change the fact that I don't graduate until next June, and that the oversight is on their part rather than mine.

I also think that reminding you about the change of terms three days after they've switched the account is a tad mendacious - if they'd informed me three days in advance, I could have transferred funds to put the account in credit, but they chose to do it after the event. Not good PR, at the very least.

I'll make all that clear in a letter and ask them to look into it.

Still no reply from their student helpline, despite trying all day. Maybe they've taken the phone off the hook because they know they'll be getting lots of complaints today! :rotfl:

Thanks again.