Santander unwilling to pay 'lost' interest

unusual

Hello, this is my first ever blog post so please be patient insomuchas I'm unsure what I'm doing!

This year I travelled alone for 5 months in SE Asia, ie I was mainly on the move and forgot that my 3% e-saver rate with Santander expired on 17 April 2012.

As I don't travel with any smartphone I have to rely on internet shops to check my bank account but I am loathed to do so imaging all sorts of possible hacking. I finally borrowed a new friend's laptop and checked my Santander account on 22 May 2012.

I was very upset to find that my interest had dropped by £300 pcm. When I called them and asked why the rate had dropped they explained that it was in the terms and conditions and that they'd posted me a letter as a goodwill gesture to remind me. I pointed out that I didn't receive the letter as I was overseas and that they should have emailed me. They said they didn't know I was overseas to which I replied that they did as I'd had to register my cards for use abroad!

My issue with Santander is that when I called to register my cards for use abroad, I should've been given the option to be emailed as obviously I wouldn't be at home to open any letters.

Also as this related to online accounts it makes sense that communication should be online and I've registered my account as 'paperless' - or so I thought until I returned home to a big pile of out-dated letters. These included warnings about 'possible fraud' on my account indicating that a stop would be placed on my card until I called them, which I obviously had to do when my card was blocked 3 separate times when trying to make ATM withdrawals from the cards I'd already registered...

My question is (if you're still with me!): Does Santander have the right to refuse to backdate my unpaid interest? They insist they contacted me to advise me that my rate was reducing - but they didn't contact me in the way that I could receive that information and I told them directly that I would be abroad for a few months.

It is very upsetting that banks are taking advantage of savers by giving these annual 'issues' that are obviously designed to catch people out who aren't totally astute when rates change (savers including my pensioner mother and her friends). The FOS should regulate savings by insisting that banks proactively give savers the best rates available without the onus being on the saver to request it!

ses6jwg

The terms and conditions which you signed up to stated that the rate on the e-Saver comprised a variable bonus which was only valid for 12 months would therefore expire at the anniversary of account opening.

Santander have already said that they advised you via letter that the rate was expiring and whilst many would appreciate that you were out of the country this is hardly the banks fault.

Many banks up until very recently do not post out anything at all for online accounts they simply vary the interest as per the T&Cs. Also a lot of banks do not send email notifications out as a lot of people are wary of emails sent by financial institutions due to phishing scams and fraud.

IMO the bank are not liable to backdate any interest as they have complied with the T&Cs of the account and it is up to you to make sure you renew or move the funds elsewhere when the bonus expires.

Ifts

unusual wrote: »

My question is (if you're still with me!): Does Santander have the right to refuse to backdate my unpaid interest?

Sorry to say but Santander are well within their rights to refuse.

You have answered your own question in your original post:

This year I travelled alone for 5 months in SE Asia, ie I was mainly on the move and forgot that my 3% e-saver rate with Santander expired on 17 April 2012.

When I called them and asked why the rate had dropped they explained that it was in the terms and conditions and that they'd posted me a letter as a goodwill gesture to remind me.

Ifts

unusual wrote: »

The FOS should regulate savings by insisting that banks proactively give savers the best rates available without the onus being on the saver to request it!

Very costly to do this and anyway the banks are there to make a profit as is any business. Also I think this would penalise all savers by interest rates being even more dismal than they already are.

chewmylegoff

You haven't got a hope of getting them to reimburse you. I tried this once with HSBC. They wouldn't budge an inch. I had lost £1,000 in interest on a large capital sum. In the end I was only asking them for £100 - saying that I would move the capital sum to another bank if they didn't pay. Their counter offer was "no", so I moved the money...

TBF, that was my mistake not theirs, and this appears to be your mistake not Santander's. You could try just asking them for some money to not move your capital sum elsewhere but I doubt the people you speak to have any discretion in the matter...

tell_it_how_it_is

Nothing doing here I'm afraid.

The onus is ultimately on an individual to take control of their own finances, as it should be.

You'll have to put it down to experience and move on.

innovate

unusual wrote: »

.....forgot that my 3% e-saver rate with Santander expired on 17 April 2012.......I was very upset to find that my interest had dropped by £300 pcm.

Are you sure you have FSCS protection for your money? A drop of £300 pcm from an original 3% interest suggests you have over £120K with one single bank.

As to whether you have a case about "lost interest": not until hell freezes over, I'm afraid.

calypso_rhapsody

Take it on the chin .... for future travels, check what is about to mature while you are away and give instructions in writing as to what you want to do with the account. I did this earlier this year with a Santander account - took the letter into branch with ID and it was all sorted. Plus if it hadn't been, then i would have had the basis of a complaint.

As an aside, i have found that you get much better service in branch than on the phone with Santander so if ever i have something a little out of the ordinary to do i pop into the local branch. Only once had a problem and that was i had accepted the advice of the call centre that i only needed to take in my cash card, not other ID ....

unusual

Thanks for all those and yes I've been winging it with all pounds in Santander but am in process of splitting money this week!

Note to self: in future be more focused on the money and less on the holiday!

Milarky

At least the monthly payment of interest alerts you sooner than annual would have that the rate had changed.

innovate

What really should alert you is some record in your bank accounts spreadsheet, a reminder in your electronic calendar, a scribble on your fridge calendar, a letter from your bank 4 weeks before the rate cut happens etc etc......you really want to act before the event, not after.

It's all about assuming and maintaining responsibility for your own affairs (general statement, not rubbing it in with the OP who has already learnt his lesson the hard way).