Kent Reliance BS - maturing frb HEADS UP.

soulsaver

If you were fortunate enough to grab one of the near tabletopping 6% 2 yr fixes a couple of years ago you should have had your maturity options letter before now. Mine got 'may be lost in the post' they say. Maybe yours was too?

Fortunately my own records flagged it when the date came and no dosh so I acted within the COP. Even then though they want it in writing, in the post - not an email, not a scan of a signed instruction or maturity options letter, not a secure email instruction to pay it to the same bank detail as the opening cheque... in other words they'd prefer you to include your bank details and signature in a letter and trust it to the PO to deliver it securely and in time. Sounds like foot dragging to me...

If you didn't issue an instruction (or it got lost in the post...) they 'roll it over' to their 1% tracker bond - which is possibly the worst option for you. You then have a 14 day 'cooling off' period in which to get the written alternative instructions to them. After that you can still withdraw your funds but with 100 day loss of interest penalty!

calypso_rhapsody

I really do think that the FSA has got to come up with some rules/guidance for banks etc on the treatment of maturing funds - this sort of wheeze for keeping hold of your money is just unacceptable.

Another (see the Skipton thread) that really gets my goat is to be charged for an electronic transfer ... who wants a cheque that may go astray in the post and will mean you lose a week's interest by the time you've rec'd the cheque, banked it and it's cleared ....

But there are lots of other irritants and sometimes i think these banks (and BSs) forget that it's our money - holding on to it when we want it back at the end of the contractual term is tantamount to theft.

Rant over!!!

jimjames

So much for Kent Reliance being a mutual for the benefit of their members! A sign of things to come I think!

KenC_3

And they won't confirm receipt of a maturity instruction until after maturity.

Domain.Rider

Probably best to send them two instruction letters, with each saying to disregard if they have already received the instruction.

hunsbury0

soulsaver wrote: »

If you were fortunate enough to grab one of the near tabletopping 6% 2 yr fixes a couple of years ago you should have had your maturity options letter before now. Mine got 'may be lost in the post' they say. Maybe yours was too?

Fortunately my own records flagged it when the date came and no dosh so I acted within the COP. Even then though they want it in writing, in the post - not an email, not a scan of a signed instruction or maturity options letter, not a secure email instruction to pay it to the same bank detail as the opening cheque... in other words they'd prefer you to include your bank details and signature in a letter and trust it to the PO to deliver it securely and in time. Sounds like foot dragging to me...

If you didn't issue an instruction (or it got lost in the post...) they 'roll it over' to their 1% tracker bond - which is possibly the worst option for you. You then have a 14 day 'cooling off' period in which to get the written alternative instructions to them. After that you can still withdraw your funds but with 100 day loss of interest penalty!

I also have the same problem that they did not receive my instructions & have opened a bond with 100 day loss of interest.
I rang them today & moaned but I still have to send a letter.
I will obtain a certificate of posting.

The other to watch out is National Savings, if they do not receive your instructions before the maturity date, they automatically open a bond with 90 day interest penalty on the sum withdrawl.

They claim that they received my instructions 3 days past the maturity date & sent my closing balance less 90 day interet penalty.
I have lodged a compliant & warned them that I will be contacting the Banking Ombudsman as they opened a new bond without my instruction & also there is no cooling off period !!!!

MarkyMarkD

That'll get you nowhere.

They didn't open a new bond "without your instruction". The terms of the original bond are that you will roll over to a new bond if you do not send withdrawal instructions in time. In other words, they followed your original instructions, because they didn't receive contradictory instructions.

There is no legal requirement for a cooling off period.

The Banking Code (which in any case no longer applies and was never law either) does not require cooling off periods on fixed rate products; just on variable rate products.

Kent Reliance's approach is better in that they do give a cooling off period on all products whether fixed or variable.

soulsaver

MarkyMarkD wrote: »

That'll get you nowhere.

They didn't open a new bond "without your instruction". The terms of the original bond are that you will roll over to a new bond if you do not send withdrawal instructions in time. In other words, they followed your original instructions, because they didn't receive contradictory instructions.

There is no legal requirement for a cooling off period.

The Banking Code (which in any case no longer applies and was never law either) does not require cooling off periods on fixed rate products; just on variable rate products.

Kent Reliance's approach is better in that they do give a cooling off period on all products whether fixed or variable.

Maybe. But the T&Cs were available 'by request'. And why don't they mention the loss of interest penalty in the T&Cs of the original fix on the reverse of the certificate? It's in the T&C's of the rollover bond.
Or explain that they wont accept instructions by anything other than post when the certificate T&Cs says '..hear from you'.
They do include that they will write to you '...at least 4 weeks prior to maturity' but not explain what would happen if there was a failure in their (or the Post Offices) processes to achieve this?

It may be legal but not up front open & honest. It's unacceptable that IMO key points (penalties) are hidden in a second level of small print 'available on request'.

BTW I am continually disappointed by the 'Fantastically Fervent MoneySaving Super Fan' types who seem to mistake the fact that what's 'legal' isn't necessarily 'right' or 'fair'. And I think the ombudsman may agree. Doesn't cost anything to try.

gt94sss2

KenC wrote: »

And they won't confirm receipt of a maturity instruction until after maturity.

I unexpectedly got an emailed receipt of my instructions from them - I believe they have my email address on record from when I opened the account.

However, I was slightly disappointed to read:

We'll contact you with more details within 10 working days after the maturity date.

If you've requested a withdrawal or closure, we will sent you a cheque by first class post on the day after maturity, or the funds will reach you by bank transfer within 5 working days after maturity.

Regards
Sunil

hunsbury0

MarkyMarkD wrote: »

That'll get you nowhere.

They didn't open a new bond "without your instruction". The terms of the original bond are that you will roll over to a new bond if you do not send withdrawal instructions in time. In other words, they followed your original instructions, because they didn't receive contradictory instructions.

There is no legal requirement for a cooling off period.

The Banking Code (which in any case no longer applies and was never law either) does not require cooling off periods on fixed rate products; just on variable rate products.

Kent Reliance's approach is better in that they do give a cooling off period on all products whether fixed or variable.

I will still chase NSI. It will cost them more to investigate my complaint rather than waiving the penalty ( which was done in an underhand manner- as far as I am concerned)

MarkyMarkD

soulsaver wrote: »

Maybe. But the T&Cs were available 'by request'. And why don't they mention the loss of interest penalty in the T&Cs of the original fix on the reverse of the certificate? It's in the T&C's of the rollover bond.
Or explain that they wont accept instructions by anything other than post when the certificate T&Cs says '..hear from you'.
They do include that they will write to you '...at least 4 weeks prior to maturity' but not explain what would happen if there was a failure in their (or the Post Offices) processes to achieve this?

It may be legal but not up front open & honest. It's unacceptable that IMO key points (penalties) are hidden in a second level of small print 'available on request'.

I was actually talking about NS&I when I said that the rollover terms were in the original contract. But the same applies to all providers - any fixed term product has to revert to something.

Again, most postal providers would expect written instructions.

If you look at either NS&I or KRBS's current bond conditions, they do specify what happens on maturity, and what happens if you do not reply. It's not hidden away unless you choose not to read it.

BTW I am continually disappointed by the 'Fantastically Fervent MoneySaving Super Fan' types who seem to mistake the fact that what's 'legal' isn't necessarily 'right' or 'fair'. And I think the ombudsman may agree. Doesn't cost anything to try.

I am not sure what exactly you think is "right" or "fair" in this context. Should all maturing bonds revert to an instant access account paying 0.1%? I think then there would be people complaining that they were "penalised" by being paid a "derisory rate". Somehow, I don't think financial institutions can win whatever they do.

Fortunately my own records flagged it when the date came and no dosh so I acted within the COP.

I'm not sure why, if "your own records flagged it" you didn't act prior to maturity and I'm even more surprised that you expected your money to simply arrive back. Can you name one bank or building society who simply returns maturing bond proceeds on maturity? Because I can't. They don't do that, because most customers reinvest and to return the funds unnecessarily would make no sense.