Lloyds Classic Vantage stopping 4%

ED

MME wrote: »

Sorry there was no date for the letter, just that it's in April. There will be 3 variants to the letter depending on how you used your vantage account(s). For example someone who typically only used the bottom interest tier will get a different letter than someone who maxed it each month.

A thread in the Savings forum of this site leads me to your fascinating input, MME, thanks.

Please tell us more about the 3 variants of the letter. I received one with nil reference to the 3% AER Incentive Saver launched on 26th April. Another member of my household received an invitation to open that account - done successfully.

What is the third version?

Will Incentive Saver @ 3% be offered to all Vantage customers prior to the late-June drop in Vantage interest rate (3% instead of 4%) and its lowering of balance (£5,000)?

Any idea what criteria is used to determine the version of the letter sent in late-April?

Here, both of us had several thousand pounds in Lloyds eSaver accounts, along with £7,000 always in Vantage. The difference is I have several Vantage accounts and a higher balance in the eSaver (I'm saving for a home).

Does Lloyds aim to reduce to one Vantage current account per existing customer and, upon such closures, to offer the 3% AER Incentive Saver to those currently excluded, thereby supplying the same interest rate for the funds upon the late-June drop from 4% AER in Vantage?

ED

To MME (or anyone in-the-know at Lloyds), as an 'insider', please can you shed some light on whether Terms & Conditions are different for some customers with the new version of Incentive Saver launched this April? In the Savings forum of this site, one customer reports Lloyds letter states re interest "3.00% AER, fixed for 12 months". Conversely, another customer states the Terms & Conditions - Ref: INOR/0411 - (rather than the initial 'invitation' letter) states "3.2 The interest rate is variable".

Apparently the T&C also state interest is paid MONTHLY. Is this correct?

Baldur

ED wrote: »

....the Terms & Conditions - Ref: INOR/0411 - (rather than the initial 'invitation' letter) states "3.2 The interest rate is variable".

Apparently the T&C also state interest is paid MONTHLY. Is this correct?

There's no 'apparently' about the Ts & Cs that I received, as opposed to the initial letter, they show the terms as I posted them - unless different versions of the Ts & Cs are also being sent to different customers.................

That's why I commented elsewhere that I would withhold judgement on the 'marketing blurb' in the initial letter until I had had an opportunity to read the Ts & Cs.

ED

Baldur wrote: »

unless different versions of the Ts & Cs are also being sent to different customers...

It seems a possibility.... Thanks for your input, Baldur. Here's hoping a Lloyds insider can supply some answers.

ChiefGrasscutter

I have to say it is "interesting" that a bank is starting to offer different people different products with different interest rates - and even it seems different T&C's from what I've been reading here.

It looks like the logical end result of customer profiling that customers can be grouped into smaller and smaller subsections and made differing offers according to their known reactions past and likely reactions to the present to such offers. All of course automatically generated by computer programs.

We know it goes on in general retailing (amazon's and other online retailers "you may want to consider" offers for example) but its the first time I've really seen it in the retail banking sector.

Never mind, wait till we get smart metering on our gas/electric where the tarrif can change by the minute depending on the time and day and add into this that customers will be offered incentives to use/not use power/gas etc depending on..... umpteen factors......just think of the chaos/complaints.

tillycat123

Are they allowed to pick and choose what profile they will allow certain accounts. It's not got a set criteria of must earn xx amount or you must put away xx amount. Does that not come under unfair trading, discrimination or something like that?

anna42hmr

Baldur wrote: »

There's no 'apparently' about the Ts & Cs that I received, as opposed to the initial letter, they show the terms as I posted them - unless different versions of the Ts & Cs are also being sent to different customers.................

That's why I commented elsewhere that I would withhold judgement on the 'marketing blurb' in the initial letter until I had had an opportunity to read the Ts & Cs.

i have had the same as you have, but to be honest think lloyds have worded it badly, as they state in several places that it is variable (ie clause 3.2) but also stats in 4.1 "on the day the fixed term ends..." what fixed term if its variable? thats what i dont get, unless they mean that the account is an incentive saver for a fixed term?? as the account becomes an easy saver after the first year

To be honest what i was told on the phone when account opened (fixed at 3%, annual interest ect) is contradicted in these terms as state monthy interest and variable rate!

opinions4u

tillycat123 wrote: »

Are they allowed to pick and choose what profile they will allow certain accounts. It's not got a set criteria of must earn xx amount or you must put away xx amount. Does that not come under unfair trading, discrimination or something like that?

Credit scoring is a form of discrimination. But it's not illegal.

Businesses can choose who they want to trade with. They can have "exclusive" offering for "selected" customers.

If you could show that the selction criteria is based on race, gender, lack of disability etc then you'd have a point. But whatever the weird and wonderful criteria involved I would be fairly certain it won't be illegal.

Apparently the T&C also state interest is paid MONTHLY. Is this correct?

I would take the details in the letter as being the way the account is intended to work.

I suspect the confusion and contradictions within the T&Cs is what's technically known as a balls-up!

kar999

opinions4u wrote: »

Credit scoring is a form of discrimination. But it's not illegal.

Businesses can choose who they want to trade with. They can have "exclusive" offering for "selected" customers.

If you could show that the selction criteria is based on race, gender, lack of disability etc then you'd have a point. But whatever the weird and wonderful criteria involved I would be fairly certain it won't be illegal.

The waters are already becoming muddy. We are just entering into the politically correct madness of insurance premiums being based on equality rather than risk.

MME_2

I'll try and get some more info on Friday but I haven't seen anything other than that there are 3 different letters. At branch level I wasn't even aware of this incentive saver offer until reading it on here!

On a personal level, I have held 1 vantage a/c since September '10 that never dipped below 6k and didn't get offered the incentive saver. I don't think it's down to existing products as I hold a Premier current a/c, Premier Airmiles Duo card, Cash ISA and Home Insurance with them so who knows but it seems like the saga that happened a couple of years ago with FRISA offers after maturity. I did read in the post somewhere suggesting it being down to the £1000+ turnover (e.g it is a BGC/SO that goes in and out), but I think if the facility to differentiate between the two is available then they would have only paid the interest if the money came and stayed in the first place.