Received different rate than advertised

Nednats

Opened an 1 year fixed rate ISA with Aldermore and Transfered a previous years ISA to it. Received a letter today to confirm with rate 0.3% lower than advertised.

Is there anything I can do about it?

4$£&*(£$&*(!

I would say there is a lot you can do about it.

Firstly call them and check there is no mistake. If there has been a mistake, ask them to correct it and put it in writing. If there has been no mistake ask for an explanation why you are receiving a different rate.

Follow this up with an email/letter to them to say following your discussions, this is your understanding of things and put everything in bullet points asking them for their formal reply (don't get emotional, stick to black and white business talk).

Then do you have any confirmation of the original offer? If so, send them this too.

If all else fails with them, would a different ISA be better for you? Work out how much interest you have lost during transfer periods and the lower rate of interest, then put to them you want a credit of this amount plus a goodwill gesture recognising the errors and remind them you may have no choice but to escalate to the Ombudsman if they do not solve things.

An Ombudsman's complaint will cost them £500 minimum to deal with so they will probably want to come to an informal arrangement with you first, hopefully you won't have to get this far.

Nednats

CitySlicker wrote: »

Then do you have any confirmation of the original offer? If so, send them this too.

That's the problem. Can't Find the original Advertised rate anywhere. No longer on their website. It was on here as one of the Top ISAs at the time I decided to transfer but with rate the have given me there were better deals I could of gone for.

4$£&*(£$&*(!

I suspect you probably don't have any confirmation emails etc either in that case if you can't find the advertised rate anywhere.

They will know what accounts were available on what dates and even if you don't have proof of the advertised rates, they will be able to tell if you would reasonably be able to get that other account if we went back in time. Still pursue them on this basis, remind them you still have the option of taking your money elsewhere and you will be taking this up with the Ombudsman requesting the equivalent interest you are losing right now and during the additional transfer period you are being forced to go through again by switching provider. This will probably be a lot less than the £500 for the Ombudsman and I suspect you'll be on a winner - so long as you are sure the account was definitely available on the day you applied.

Nednats

CitySlicker wrote: »

I suspect you probably don't have any confirmation emails etc either in that case if you can't find the advertised rate anywhere.

They will know what accounts were available on what dates and even if you don't have proof of the advertised rates, they will be able to tell if you would reasonably be able to get that other account if we went back in time. Still pursue them on this basis, remind them you still have the option of taking your money elsewhere and you will be taking this up with the Ombudsman requesting the equivalent interest you are losing right now and during the additional transfer period you are being forced to go through again by switching provider. This will probably be a lot less than the £500 for the Ombudsman and I suspect you'll be on a winner - so long as you are sure the account was definitely available on the day you applied.

I have found the Rate Advertised on the MSE weekly email on the 7th March, The same day I opened the account. Phone them just they say the rate change on the 29th February.

evenasus

Is this of any help? A cached link to their rates as of 03/03/2011
http://webcache.googleusercontent.com/search?q=cache:3TYaDHl36v0J:www.aldermore.co.uk/about/news-press-releases/2011/03/ald092/+aldermore+1+year+fixed+rate+isa+3.45%25&cd=7&hl=en&ct=clnk&gl=uk

Edit: Oh, don't this it's the ISA rates though.

badger09

I had a similar problem with Julian Hodge Bank a couple of years ago.

Basically, the rate dropped between the date I signed my application, and the date they received it. Unfortunately there was a clause in their T&C which said the rate applicable would be that in force at the date of receipt

I suspect that's what you'll find here.

According to emoneyfacts Daily News Bulletin, Aldermore's 1 Year Fixed Rate ISA dropped from 3.35% to 3.3% on 29/2/12 and to 3.15% on 7/3/12 so not sure why you're 0.3% down :cool:

4$£&*(£$&*(!

Put in a letter of complaint and ask them how they intend to right this for you, the ball's then in their court. I still think if you go formal on this you're likely to come off a winner.

noh

Here is a link to the newsletter
http://www.moneysavingexpert.com/tips/07-03-2012/

You will see the interest rate stated in the newsletter is 3.3%
On the same day the newsletter was published Aldemore reduced the rate to 3.15%

3.15% is the rate you should get if you applied on the 7th March 2012.

4$£&*(£$&*(!

If the interest rate is 3.3% I would open a Santander account and put the transfer in now, they pay interest from the day they get your transfer request, have a quick call to Aldermore first to see if they will honour the 3.3% and you want an answer today or tomorrow.

The Santander account paying 3.3% can only be opened in branch now and closes on Thursday so you still have a negotiating tool. You have to be quick though.

dunstonh

Put in a letter of complaint and ask them how they intend to right this for you, the ball's then in their court. I still think if you go formal on this you're likely to come off a winner.

Whilst anything is possible and they may do it as a goodwill gesture, I don't think there is an actual complaint to answer here.

Funds normally have to be in by a certain date to get that rate. I would expect (but dont know) that their literature states this. With the OP opening the account on the 7th March but the rate reduced to 3.15% by that date then 3.15% should be the rate given.

the FOS can waive the £500 fee if it feels the complaint is frivolous. However, banks are also giving out money for anything nowadays. So, you can never say what is going to happen.