Success claiming compensation from bank dropping its interest rate

Imnoexpert_2

Banks open accounts with high rates, suck you in and then drop the rate and open new ones with a higher rate. The new variant is a guaranteed bonus for a year on top of a variable rate.

I was please that the Coventry BS wrote to me to actually tell me that my 12 months was coming to an end and the rate would change. Gold Star to them.

Sainsbury Bank with whom I had a similar deal made it difficult to find out the variable rate. I ended up phoning them every 3 months to check. When the 12 month bonus was coming to an end they didn't advise me, but I phoned anyway and was told what the rate would be. 3 months later (when I phoned again) it transpired I had been dropped from 2.95% to .5% for 3 months.

I complained to the bank by phone, escalated that to the 'manager' all to no avail. Both refused to refund loss of interest. Both said it was impossible to find the recorded conversation. Though I suspect if I had 'defrauded' them they might have tried harder!

Anyway I wrote in, made a formal complaint and they refunded the loss of interest. So they got it right in the end. Thanks.

Two points.

If you feel this kind of thing has been done to you complain long loud and in writing.

Sainsbury's had a real change to bring good customer service to banking. It would be so easy to email customers with online accounts when rates change. They have blown it. We all need to give banks a hard time about this kind of thing!

Paul_Herring

Is it really that difficult to make a note in a diary 12 months hence, rather than expecting the banks to remind you of the fact, that the rate will be dropping?

Imnoexpert_2

You are right. It takes little effort to do it, though it is effort I would be happy for the service provider to expend in addition to me in case, age, infirmity or loss of my diary intervened.

Typically these accounts now have a variable rate, and a guaranteed 'bonus' I needed to phone regularly because the variable rate may have varied.

In my case I rang a couple of weeks before the end of the 'guaranteed' period and asked what the ongoing rate was and was misinformed by a (probably poorly trained) member of staff dealing with an over complicated product.

Paul even if you have no sympathy with me, try to empathise with some of my elderly relatives (and maybe other moneysavers) who for whatever reason have come unstuck in this way.

My IFA visited an elderly lady who had tens of thousands in a 0.5% ISA and he made the point that if he had treated her investments with him as the Bank had treated her the FSA would have come down on him like a ton of bricks.

Paul_Herring

Imnoexpert wrote: »

Paul even if you have no sympathy with me, try to empathise with some of my elderly relatives (and maybe other moneysavers) who for whatever reason have come unstuck in this way.

I have every sympathy with those who cannot do what I suggest. However...

The problem lies with the other '99.9%' of those affected who can.

But don't.

Because they're lazy.

Complaining on behalf of the 0.1% because you're in the other 99.9% is not the way to go about things. Take responsibility for yourself !!!!!!.