Sneaky interest rate reductions - West Brom but probably others also?

mjjordan

I noticed in passing that our West Brom Isas had reduced total interest including bonus had dropped below 3% and thought, hello what's going on here then? So I asked them, when did you tell me you were reducing this rate? Got this response "
Please note that because the adjustment was not more than 0.25% it is not classed as a 'material change'. This means we are not required to notify customers of the new rates individually."

My response "So, you are at liberty to reduce the interest rate by 1/4% at a time without notifying us ? ! Stand by to receive the transfer out instructions!

You need to have eyes in your rear end!

Perhaps Martin might like to look at this one - on only 3% interest a reduction of "only 0.2.5%" is actually nearly 17% of what you were expecting to receive, and if they manage to sneak it through on more than one occasion during the year you've agreed your deal on, you could end up with nowt despite the intial promise !!!

bigadaj

Isnt it 8.5%?

mjjordan

Yes, sorry, stand corrected, brain not totally in gear Sat. morning - it is 8.5%, but that's still a chunk to lose from what you were expecting - imagine taking 8.5% off your wages (if you had any)..

opinions4u

The FSA BCOBS rules allow for a single change of 0.25% or less without notification. Reductions of 0.50% or more in a 12 month period will require notification. So keep an eye on their website!

I blame the FSA for this. The Payment Services Directive only applies to payment accounts, typically a current account or easy access savings account. The Directive requires two months written notice of any rate reduction on such accounts. The FSA should have aligned their BCOBS rules to PSD.

West Brom have acted legally, in line with their terms and conditions and compliantly with regulation.