NatWest changes

CPfan

I rang the number that was on the letter we all got so I suppose it was the normal call centre.

I asked why the error had only just be discovered and was told the same as you dulcieb, that it was a computer checking through all the accounts to make sure they were receiving the correct rate of interest.

I explained that it took ages to open the account originally but had been assured on the telephone on a couple of occasions that I had opened it in time and would receive the higher rate. Well obviously I was getting it but now they've decided I shouldn't have been.

When I asked why the rate had been lowered on the 16th December but I only got the letter to inform me of this on the 31st, I was told it was due to the bad weather!

SimonM_2

dulcieb wrote: »

SimonM -- This is the e-ISA that launched somewhat catastrophically for April 2009. NatWest's internal systems failed to meet demand, not least because they forgot to put vital fields into the form. Many of us whose accounts were delayed were told that we'd missed out on the higher interest rate (sorry, I don't have it to hand -- can anyone else advise?) but they relented on this after so many complaints. A letter dated 16 Dec went out announcing a rate cut in response to this "error" but most of us received it on 31 Dec, when it was too late to do anything.

Thanks for the reply. If you or someone else could confirm the rate that it was, and the rate that it now is (I presume the letter covered the rates, rather than just saying it had been reduced?) that would be appreciated.

You've mentioned the letter was dated 16th of December, was that also the date that the change to the interest rate came in to effect?

All of you affected by this may wish to know that there is a lengthy topic running in the main Savings section of this forum at https://forums.moneysavingexpert.com/discussion/2754900 - it won't be pleasent reading to NatWest customers who have been affected by this and probably gives you an idea of the hassle you will likely face with your complaint. Please keep good records of your complaint and chase up NatWest at all stages as they simply do not seem to keep to what they say they will do.

CPfan

Hi SimonM

I've tried to add a link to the page on the NatWest website which gives the rates for the e-ISA, for those accounts opened before the cut off date in May 2009 and those opened afterwards. However, this site won't allow me to do this because it says I'm a new user and it's done to prevent spammers.

So I'm afraid you'll need to go to the NatWest website yourself and look up the interest rates.

You'll see the rates are tiered.

I hope this helps.

Charles_Ponzi

dulcieb wrote: »

I'm now waiting for the letter but the very nice lady who rang me today said that they'd reinstated the higher interest rate and would recalculate interest owed. And because I've been through this twice (now and setting up the account) they're giving me £10, which is nice.

I did get a letter today from NatWest, unfortunately it wasn't like the one you're expecting dulcieb.

Phil Sheehy, Head of Savings, thanks me for my recent contact regarding the E-Isa.

"They have noted issues and are investigating them. Will respond back shortly and within 28 days at the latest".

Followed by the usual get out clause - Unless investigation takes longer then I will be contacted with update on progress.

First 5 days, then 10 days, now 28, maybe longer. I suppose I should be grateful they at least sent me a letter.

SimonM_2

CPfan wrote: »

Hi SimonM

I've tried to add a link to the page on the NatWest website which gives the rates for the e-ISA, for those accounts opened before the cut off date in May 2009 and those opened afterwards. However, this site won't allow me to do this because it says I'm a new user and it's done to prevent spammers.

So I'm afraid you'll need to go to the NatWest website yourself and look up the interest rates.

You'll see the rates are tiered.

I hope this helps.

Thanks, I presume you mean this page:

http://www.natwest.com/personal/savings/g6/rates.ashx#eISA


What I'm trying to work out is what the old rate was, what the "new" rate is, how much the rate has dropped and how much notice they gave you.

If you've gone from 2.75% AER to 2.00% AER, as the savings rates chart lists, then that is a 'material change', and under their Terms and Conditions (section 11.2.1 C) NatWest must personally notify you not less than 14 days before the change comes in to effect (as long as you have £500 or more in the account at the time). By not doing so they are in breach of the Terms and Conditions and also of the FSA rules which they are bound to as all banks in the UK are.

Please can someone confirm the rates as they were and now are, and that they have indeed dropped as per my example of 2.75% to 2.00% on the lowest tier, and other similar drops on the higher tiers, and that you didn't receive the required minimum 14 days personal notification before this happened.

Charles_Ponzi

SimonM wrote: »

What I'm trying to work out is what the old rate was, what the "new" rate is, how much the rate has dropped and how much notice they gave you.

In my case, the letter tells me I don't qualify for the extra 0.74% gross interest. So my rate drops from 3.21% to 2.47%. This was applied on the 16DEC10 and letter was received 31DEC10. Strangely, the letter isn't dated.

As this wasn't a normal interest rate change would the 14 day notification still apply? They are basically saying a mistake was made!

However, the required notification is not our main concern.

Our main complaint is that they are saying that getting the higher rate was a mistake. This was not the case as it was agreed by them at the time.

I was hoping that the post by dulcieb had indicated that NatWest were going to honour their word.

kenomeat

I have also received a letter from the Savings Team extending the decision making period to 28 days. Doesn't look too promising.

CPfan

Yes, SimonM, that was the link I tried to post.

My letter was exactly the same as that received by Charles Ponzi - I didn't qualify for the extra interest, the reduced rate was applied from 16th December but I didn't get the letter until the 31st. I don't know either if the normal 14 rate change notification would still apply. What they're saying is that I wasn't entitled to be receiving the higher rate of interest in the first place ( I think I was) and they're being generous in not asking for the overpayment back because it was their mistake.

I was briefly encouraged by the result achieved by dulcieb but it isn't looking good for the rest of us. I haven't heard anything yet but they have until Monday to respond, according to what I was told. I suppose then I'll be told I might have to wait 28 days for a decision. They're certainly dragging it out. I'm hanging on for now and hoping for the best but if they say the lower rate will apply to my savings, I'll be moving my money out of NatWest.

Charles_Ponzi

Guys, just got a call from NatWest at Bristol. So that's two of us now. They said pretty much what was told to dulcieb. Apologised for the original mistake and the delay in reacting to complaint. They will be re-instating interest and back-dating it to 16DEC10 with a letter by end of the month.

No mention of £10 compensation, guess they can't afford paying that to all of us!

CPfan

That's great news Charles Ponzi. I'm pleased for you. The main thing is to get the original rate reinstated and back dated interest paid. dulcieb's £10 compensation was an added bonus!