High Street Banks - penalising existing customers!

PJD

I used to have a mortgage with Abbey National, but switched it to C&G as Abbey would only offer competitive deals to NEW customers.

Now, they're offering 6% on current accounts to NEW customers ONLY. Is this the thanks I get for being loyal to Abbey National for FIFTEEN PLUS YEARS?

I rang & said to them today that, as a loyal customer for over fifteen years, if I don't get treated the same as new customers i'm leaving. I'm waiting for a call back, but i'm not holding my breath.

I was so annoyed at the time of switching my mortgage at the way they treated me, I closed my ISA & Direct Saver accounts with them at the same time as my mortgage. I left my current account as it was as they've never messed up any of my DD's - of which I have many. But I will leave this time, & I bet they couldn't care less.

PJD

PS - the guy i spoke to today told me that maybe I would be interested next time I want to switch my mortgage. I told him that I wouldn't be intersested, - as - when it comes to switching my mortgage thereafter, I will again be penalised for being an existing customer!!!!!! ARGH!!!

RayWolfe

PJD wrote:

I rang & said to them today that, as a loyal customer for over fifteen years

There is no concept of loyalty in business nor should there be in dealings with business.
Learn and move on.

Wyndham

I moved away from Abbey a couple of years ago as when we moved house they were completely incapable of getting the new address right on all our accounts. So we made it easy for them and closed them.

I'd had my current account since I was 18 (so around 17 years when we closed it). Added hubby to it when married. Had ISAs, savings etc. And we've moved them all! They did give me some compensation when I first complained about the address, but then didn't correct the mistake. It got to the stage where the manager of the branch winced when he saw me coming!!

Didn't have any problems before they were taken over by the Spanish Bank (can't remember the name - Santander or something?) Would still be with them if they'd got this right.

But... there is NO reward for loyalty.

Rafter

It is called inertia.

Nationwide - which is owned by its members and therefore should offer the same deal to all tried doing just that a few years ago.

What happened is that it lost market share rapidly and had to backtrack.

Why?

Because customers like you and I saw better deals in the papers and best buy tables from organisations like Abbey who are quite happy to offer an up front juicy deal in the knowledge that some customers won't switch when it comes to an end.

In fact exploiting these introductory deals is what pays for this site and fills most of the pages.

Of course it is unfair that existing customers pay more than new ones but unless you can persuade everyone to move when the introductory deal ends so that nobody offers juicy deals in the first place, I can't see marketing teams and companies changing their current strategies.

If you do want a consistently good deal though without switching you will usually be better off with the co-op or a building society. At least there any profits are re-invested for members benefits and the salaries of the directors aren't sky high.

R.

PBA

If you compare the APR (not the headline rate) on the existing customer deal at Abbey and the new customer deal at C&G I'd be surprised if they're not very similar. You may be able to get a better headline rate as a new customer with another lender, but after paying all the fees involved the total amount you pay would most likely be much the same.

tom188

APRs on a mortgage are a bit of a nonsense because they are calculated on the basis that the mortgage is held to maturity, which is usually not the case with people looking for the best deal. Therefore dont read too much into them.