NatWest changes

dulcieb

Hi -- I'd be interested to hear if anyone else is having this problem.

I've had a letter from NatWest today (New Year's Eve) telling me that as a result of a mistake, the interest rate on my e-ISA is being reduced from 16 December. Of course nobody responsible for the letter was available today -- so this is 18 days or so before I can take any real action.

But this isn't a mistake. The e-ISA offered a bonus if the account was up and running by 16 May 2009. Like thousands of others, I suffered from the inefficiencies of the bank's own systems. I applied in April and had to chase the bank to get this done. Because of the delays they agreed to offer me (and I presume others) the higher rate. I am sure that there will be some correspondence somewhere but it's all a great inconvenience.

Is anyone else in the same situation?

Thanks.

CPfan

Hi

Yes, I too received a letter today which was the same as yours. NatWest took ages to process my application but I understood I'd opened the ISA before the 14th May 2009. Now they say it wasn't opened until after that date.

I recently transferred money from another ISA to NatWest because of the higher interest rate but wouldn't have bothered if I'd known they were going to drop the rate on the 16th December.

I don't know what to do now other than move the money yet again. It makes me wonder if banks actually want you to save with them or not!

Has this happened to anyone else? I'm sure it won't just be the two of us.

dulcieb

Hi CPfan (and others)

I'm sure we're not alone. I don't know how much you remember of the account opening process but as is familiar to anyone with an ISA this took a long time. At one stage they told me that it took at least two weeks for post to get from London to Leeds.

I'd rung them (they do everything they can to prevent a paper or e-mail trail) about the delay and when the account was set up rang again to check the interest rate. When it was lower I explained about the delay -- and they were quite open about the problems they'd had -- and agreed to re-instate the higher rate.

It seems to be that "mistake" that they're relying on.

Those who sent out the letters had vanished from work yesterday, leaving poor staff at call centres and branches to deal with this. All they could do was refer to an e-mail that some had receivd about this, or raise their eyebrows at a recorded message saying that the ISA people would be away from New Year's Day.

Dropping the rate at the outset would indeed have made the whole think uncompetitive -- and that is very much the sort of point we should make, although they should have records.

If this is being applied to everyone they should admit the fact.

But other experiences will help us to make the case next week.

dulcieb

Charles_Ponzi

Me too! I got "the letter" on the 31/12/10 too. Nice way to end the year!

Exactly the same thing happened to me. Applied in Apr 09 and got the Application Pack on 27Apr, documents returned and being processed 07May.

Then it all seemed to go wrong! No doubt they were innundated with applications prior to the deadline but I reckon part of the problem was the need for a Current Account to be opened at the same time. The ISA was being done by one lot of people and the Current Account by someone else. These people didn't seem to talk to each other! The ISA lot returned my cheque saying I didn't have a current account even though it was being done by the other lot! I went to the local NatWest to sort it out but they didn't want to know as it was an internet ISA and nothing to do with them. I remember at the time, the utter disbelief that I was in a bank actually trying to give them my money and failing!

Ended up phoning them to get assurance that higher interest was still applicable. This was confirmed as application was prior to deadline and the delay had been caused by them.

So this letter was a nasty surprise, saying there had been a mistake but the good news was they weren't after a refund!

So another phone call was made and seems I wasn't the only one, they mentioned something about an email and then took my details, raised a complaint and said I would be phoned in 5 working days.

Will see what happens!

dulcieb

Hi

I've now managed to speak to someone. They tell me that they're on high priority to deal with this and that I too should get a call in the next five days. They said that they've been inundated with calls and everyone saying exactly the same thing -- that there were long delays in setting up the account and that customers were promised the higher rate.

It does look like a bit of an own goal, as in fact did the original delay. I remember various problems, not least that the forms required forgot to ask for necessary info.

Keep the pressure up!

CPfan

I can't even manage to talk to anyone. I held on for 15 minutes and got no answer. I just kept getting the annoying recorded message saying how important my call is to them! I suppose I'll have to try again.

Did they give you any indication of whether or not the higher interest rate will be reinstated? I'm wondering if I should transfer my money out to another ISA a.s.a.p. or wait to see what NatWest will do next.

Charles_Ponzi

Person I spoke to just took down all the relevant details. This will obviously have to go higher up the food chain for any decision!

Suggest you try phoning them again.

As for moving ISA, I reckon they will have many people doing that if they make the wrong decision and go back on their word!

explore

I recieved the same letter today after which I started looking back at previous communications from Natwest. I found a letter which is dated 11 May 2009 and says my account is 'now opened'. Now the bank has audacity to say that my account was opened after 14 May 2009.

I spoke to their customer service department, person on the other end said they will contact me in 5 days and many people are contacting them about this issue but refused to give me any reference number for the telephone call.

Is there anywhere we can complain?

Charles_Ponzi

We're on Day 4, no phone call yet!

Hope they are not taking the head in sand/it will go away approach.

dulcieb

Hi all

I too am still awaiting a reply from various sections -- the complaints people are waiting too. It's now three weeks since this unilateral and incorrectly explained decision. I've spoken to someone who's awaiting info on my behalf. She suggested that this may well be reversed and I presume that she has that as general info -- but perhaps they've realised the scale of their error.

What is clear is that there are A LOT of calls to the bank about this and just like when they set up the account they haven't allocated sufficient resources. The various people I've spoken to have been very apologetic as they're not getting through either.

Another spectacular own goal that undermines a lot of the goodwill that they generated through maintaining the interest rate and recognising their own shambolic handling of it two years ago.

Explore asked who to complain to -- I'd suggest contacting the central Customer Services people on 0800 015 4212. This should help if you need to register, but in any event I think that they need to be made aware of how appalling this episode is.

kenomeat

I too received the dreaded letter over the holiday period. When I rang NatWest I was told that a number of people had contacted them about this and that my details would be passed to the Savings Team, with a reply expected within 5 days.

In my case, I applied for the account on 14/04/2009 and my first credit to the account was on 19/05/2009. But because of the shambles created by NatWest, I dealt with a supervisor who arranged for the equivalent of 4 weeks interest to be credited to the account on 20/05/2009. I too was assured that I would get the higher interest rate.

I do hope Martin takes an interest in this.