Kent Reliance BS - maturing frb HEADS UP.

joegib

Thanks for this warning OP — it's timely for me as I have a 9-month bond with KRBS maturing at the end of January 2011. Your post led me to review the T & Cs and, indeed, I see that if I don't exercise a withdrawal option explicitly, my money gets locked into a direct tracker bond earning a pitiful 1% interest for at least a year — unless, that is, I'm prepared to pay a penalty for the privilege of recovering money that I though I'd contracted to loan for 9 months. All this resting on the slender threads of KRBS actually issuing notice of maturity, or me actually getting it, or me alternatively monitoring the timeline so closely that I can avoid contractual banana skins deliberately placed in my path.

To me, the natural default for a bond expressed to run for a defined term is that the sum loaned is repaid on maturity unless the lender explicitly mandates otherwise. If the agreement doesn't work in that way, but includes a banana skin provision that locks the lender into a further fixed term (on pain of penalties), then at the very least the arrangement represents false advertising.

It's interesting to compare these maturity terms with Birmingham Midshires with whom I've had 2-year bonds in recent years. In their case, in default of instructions, the money is transferred to an instant access account earning 1.8% interest. At least the lender's interests are respected by giving a half-decent rate plus the opportunity to recover his money as soon as he bestirs himself.

Clearly, KRBS do need watching. In fact the whole damned industry (and its apologists for whom contractual = ethical) need watching.

Joe

KenC_3

gt94sss2 wrote: »

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:

Regards
Sunil

All OK at my end. Bond matured on 27th (weekend so effectively nothing could happen till 29th) and cash received today in my nominated account with closing interest.

hunsbury0

I sent a letter to KRBS on Monday ( 1st class) as per their instructions, but I rang them today to check & they have not received it !!!!!!!!
I am now getting frustrated. May be I should have hand delivered & got a receipt from CEO written in is own blood !!!!

soulsaver

BTW credit where credit's due; the ladies I spoke to at the Indian call centre were the most fluent English speaking operators I've ever encountered on any asian customer service... service - good service too:
The supervisor said they'd phone the following days to confirm whether instruction had been received.
Phoned me back following day to say it hadn't; and again the day after to say the 'silly' (not her words) policy was at last attained.