HALIFAX/LloydsTSB - Interest rate on on-line statements (NOT) [Merged]

innovate

What's the difference between this thread and you other https://forums.moneysavingexpert.com/discussion/4127931?

If you think you have caught a bank with their trousers down, why not

1. write to the bank to give them an opportunity to explain themselves / rectify their wrongs?
2. if they fail to do so, and you are still convinced they are at fault, report them to the FSA.

Miles better than opening new MSE threads if people don't support you in your old one.

mulronie

yabbadoo wrote: »

Unfortunately the MIS-information added by contributors, primarily Mulronie, has destroyed the purpose of this thread. Had he actually READ the FSA BCOBS 4.2.2, this thread would not have degenerated as it has - it's lost the point, I'm posting a new one, in the hope of POSITIVE comments more to the point being made.

BCOBS 4.2.2 G - A firm should indicate the rate or rates of interest that apply to a retail banking service provided or made available to a banking customer in each statement of account provided or made available to a banking customer in respect of that retail banking service in accordance with BCOBS 4.2.1 R (1)

The two key phrases in this para are "statement of account provided or made available" - and "the rate or rates of interest that apply to a retail banking service".

Also important is the final reference to BCOBS 4.2.1 (R) - in its entirety (i.e. NO exceptions) and 4.2.1 (b) CLEARLY defines electronic (i.e on-line) banking as being INCLUDED.

It seems you can't be saved from yourself.

After first denying that the Handbook was in force, and subsequently accepting it, you now choose to read it only selectively.


BCOBS 4.2.1 states that:

(1) A firm must provide or make available to a banking customer on paper or in another durable medium such regular statements of account as are appropriate to the type of retail banking service provided, but need not do so where [emphasis added by Mulronie in the vague hope the OP notices it]:
...

(b) the retail banking service is provided at a distance by means of electronic equipment where the banking customer can access his account balance, view transactions and give instructions in relation to the retail banking service at a distance by such means;

An online account, including but not limited to the Halifax Websaver account, falls under the exemption shown under section (b). Thus, Halifax are under no obligation to provide or make available a statement to you.

BCOBS 4.2.2 outlines how a bank should communicate its rates to you, and demands that the banks provide you with a rate on any communication issued as a result of BCOBS 4.2.1. As I show above, Halifax is under no obligation to produce a statement, and is therefore under no obligation to provide you with the rate

So, as before - consider yourself lucky they tell you anything at all, because they categorically do not need to.

yabbadoo

OOPS! Sincere apologies, Mulronie - I got it wrong.

One can hope that at some stage the FSA will delete the "need not do so" clause (which somehow I'd completely missed) thus giving internet accounts the same rights and service the banks are required to give to all other customers - it's illogical and perverse that it is not already so.

OP withdrawn - it's wrong.

2010

yabbadoo wrote: »

OOPS! Sincere apologies, Mulronie - I got it wrong.

Whether you got it wrong or not doesn`t alter the fact that a half decent bank (I know

---

show me one) would clearly display the interest rate for each account.

VM/NR go one better and actually display the NET rate.

opinions4u

2010 wrote: »

Whether you got it wrong or not doesn`t alter the fact that a half decent bank (I know

---

show me one) would clearly display the interest rate for each account.

VM/NR go one better and actually display the NET rate.

Do they display the gross rate as well?

Interested, because the gross rate (not the AER or net) is the contractual rate of interest.

oldvicar

opinions4u wrote: »

Do they display the gross rate as well?

Interested, because the gross rate (not the AER or net) is the contractual rate of interest.

No they don't.

But in my case they show only the gross rate, since I've registered with them as a non-taxpayer.

yabbadoo

A variable-rate 1 year on_line account opened 2011 at 2.8% with Halifax showed 2.6% in the drop-down box 12 months later (now 0.1%). Queried the interest in two respects - taxed (despite R85) and wrong anyway (and what date did the rate change). The balance was 5 figures throughout, so significant interest.

It took from early June to mid-August for Halifax to respond to the questions. R85 was sorted via duplicate, but they cannot trace the "glitch" where 2.6% showed at anniversary. They have recalculated and paid interest at 2.8% in full (an increase on their original offering) plus refunded the tax, and said they will credit £50 compensation (still awaited, 10 days after the written offer). They say they comply with the banking code - that now seems to be the case, though I didn't agree till this post exchange..

This scenario triggered my original post (based on frustration, and the "know your rights" FSA pamphlet) - Mulronie subsequently added the link to the FSA "bible" - BCOBS - which unfortunately I mis-read, and so made a right fool of myself.

I totally agree that banks SHOULD clearly display the applicable rates AND DATES for variable rate e_deposit accounts. - it's not so important for fixed rate ones, that is usually in the name of the account.

A similar case was posted here a few months ago concerning a LloydsTSB on_line ISA. Drop-down rate was over 3% but initially they only paid out 0.5% when cashed in, but paid out in full when challenged.
Relevance - Halifax and LloydsTSB on-line systems were merged in 2011.

It's clear that there IS a glitch in the Lloyds Banking Group e_banking system. As thing stand, there's no control of e_banking either from within the banks or from the FSA, regarding on-line interest rate changes or notifications.