Nationwide offering protection racket?

shoppingtanya

Had a really unsettling experience with Nationwide today. My debit card was declined whilst out shopping so I went into the nearby branch to find out what was wrong. I was disturbed to find that a block had been placed on my account due to suspected fraudulent activity. The staff member in the branch seemed helpful but was not able to do much. She phoned the security department who confirmed that some transactions had been flagged as fraudulent and I would need my card replacing.
I was just beginning to calm down when, at the end of the conversation, I was asked if I would like to take out a protection policy.

So I need insurance to stop my money being stolen? From a building society with this promise:

We're so confident of our site's security that we take full responsibility for it: if you ever innocently suffer any fraud as a result of our Internet Banking service, we'll refund any money taken from your account. That's a promise.
So, with our promise, you can be safe in the knowledge that Nationwide has your interests at heart.

Preying on customers insecurities is a cynical way of making money and I had thought better of Nationwide.

This does not inspire a great deal of confidence in Nationwide so I would be interested to hear if any other members have been encouraged to take out this type of insurance.

rb10

I think you misunderstand the reason for the policy.

I imagine that it's a card protection policy that she was offering (/selling) you.

This means that if you lose your cards, or have them stolen, you just phone the insurer, and they'll stop the cards and order new ones for you. See http://www.nationwide.co.uk/creditcard/GoldCard/protection.htm

It is a complete waste of money in my opinion, but at the end of the day they are a business, so you can't blame them for trying it on!

DrSyn

Any bank or building society today, which issues you with credit or debit cards, will ask the same question on they form the card is attached too.

Its a way of getting commision for the bank or branch staff. Also maybe that the bank or branch manager has been applying pressure on the staff to sell.

For a number of years banks have considered themselves to be "points of sale". Which is why they like as much info about you as possible, so the can sell to you. This has now started to happen at buiding societies as well.

The old fashion idea of the friendly bank manager is long dead. The societies are fast catching up. A sign of the times I!

shoppingtanya

No it wasn't card protection, it was fraud protection, specifically covering losses arising from fraudulent activity on your account. What was most annoying was that it was the security department who pushed the policy NOT the branch. It just seemed crass to offer this product at a time when I was clearly feeling vulnerable.

zppp

I can't find fraud insurance on the Nationwide website, only details about the Card Protection Plan or CPP? :think:

shoppingtanya

I don't know the brand name of the product but I think it was something from outside Nationwide, the card protection plan is provided by a company called CPP Life Assistance so maybe that?

I just felt a bit like Nationwide was saying that their card services are secure but if you pay it's an even more secure.....? Either it's safe or it's not as far as I'm concerned.:undecided

zppp

The CPP plan offers the following according to the Terms and Conditions of the policy;

Loss of card
Loss of mobile phone handset
Loss of keys
Handbag and wallet replacement
Emergency hotel bills
Passport and Driving Licence
Personal Items
Emergency Cash
Travel tickets
Communication costs
CIFAS Protective registration - maybe why the security team tried to sell you this cover.

When I was offered it with Abbey, I always turned it down, but I didn't know that all of the above are covered.

shoppingtanya

Yeah that sounds like it. What I have since found out is that you can put a CIFAS indicator on your account for free. Also quite a lot of those things listed might be covered under a comprehensive home contents policy.

I dunno, I just feel like I'm being told I need insurance for this, that and the other, I suppose there is the argument that all these services are valuable when you need them. The way that customers are made to feel fear if they are not covered for every possible risk is not, I feel, in the spirit of good customer service.
Sorry for grumpy..just had grovelling apology from Nationwide customer relations manager Barry Giles.
Best wishes
Tanya

zppp

shoppingtanya wrote: »

Yeah that sounds like it. What I have since found out is that you can put a CIFAS indicator on your account for free. Also quite a lot of those things listed might be covered under a comprehensive home contents policy.

CIFAS protective registration costs £12 + VAT per year.

http://www.cifas.org.uk/pr_for_individuals

pqrdef

CPP also sell an Identity Theft policy.

Usual rip-off - a few quid for the actual insurance, and the rest goes on service charges, including a large kickback to the bank.