Britannia 3 year GCIB

Channelman

Back in October 2009 I invested £5100 in a 3 year Guaranteed Capital Investment Bond (Issue 75) ISA with Britannia.

The deal was that IF the FTSE 100 increased over the three year period I would receive 15% interest, tax free.

Now the bond has matured I have received notification from Britannia BUT they claim that the interest is 11%.

This is a £200 difference.......plus I have two more similar bonds invested for the next two subsequent years.

Has anyone saved details of the original offer available in Oct 2009 since basically they have said to me "Prove It".

Regards, Channelman

Goldenyears

I wonder if this link is relevant.
http://www.telegraph.co.uk/finance/personalfinance/consumertips/jessicainvestigates/9260183/Britannia-repays-reader-325-after-Telegraph-involvement.html

Channelman

Goldenyears wrote: »

I wonder if this link is relevant.
http://www.telegraph.co.uk/finance/personalfinance/consumertips/jessicainvestigates/9260183/Britannia-repays-reader-325-after-Telegraph-involvement.html

Thanks, I'd already seen that story when I was surfing for
archived info about the offer. It made me even more convinced
that Britannia (now Co-op bank) are 'pulling a fast one' on me.
If I can't get anywhere I might contact Money Mail in the Daily
Mail to see if they can help.

dunstonh

There will be no pulling of a fast one. This is an easily resolved issue. A quick look at your application form showing the product code of the version you applied for will ensure that you are getting the right terms applied.

Rather than going to the Daily Mail, how about dealing with Britannia? If you doubt what you applied for then ask them for a copy of the application. What about the product particulars that are given to you in writing after you apply? What have you done with them?

xylophone

how about dealing with Britannia?

The answer to this lies here? Of course the OP could have misunderstood?

basically they have said to me "Prove It".

dunstonh

The answer to this lies here? Of course the OP could have misunderstood?

The OP is making an allegation against the provider. To me it seems a very simple thing to resolve. Either Britannia are being bloody minded and difficult or there is a confusion or error. Products are typically very specific on terms offered and very easy to prove what they were. So, something is breaking down somewhere but I see no logical reason why it should.

Channelman

I have, of course, spoken to Britannia. In the first instance by
telephone to the branch where I set up the investment. They
had no records and told me to contact the head office, who
asked me if I had a copy of the original offer.
I have only found the original confirmation which gives me
a reference number, account number, the figure invested and
the start date but no mention of the 15% rate.
The application form, which I filled in at the time, would have
been retained by Britannia.
I have asked, by email, for confirmation of the interest rates
for this and the subsequent two years GCIBs.
If you think that they would still have my original application
then I could also request a copy of this.
The "product code" could also be in the 2009 confirmation letter
I have, since there must be a reason for the long reference
number.......(C0033/PAX032/B0169/GCIB). Although I would have
thought that "3 Year GCIB ISA Issue 75" would identify it.

opinions4u

Post three in the attached link appears to suggest the return on a four year offering was 15%. Not conclusive though.

https://forums.moneysavingexpert.com/discussion/comment/23953319#Comment_23953319

Channelman

dunstonh wrote: »

This is an easily resolved issue.

Maybe it is easily resolved for an IFA, but for the 'man in the street'.......not so easy.

I have asked for the original application by post but they have just told me that the
interest rate is 11% and NOT sent a copy of the original application.

I ask myself, why would I accept a bond which paid only 11% after three years,
subject to the whims of the FTSE100, when at the time a Fixed Rate ISA (from
Britannia themselves) paid 3.4% APR. That would accumulate to 10.5% after 3 years.

That's a stupid risk for 0.5%, you must agree.

So either:
a) Britannia have made a mistake and it should be 15% or
b) I was mis-sold the GCIB in my local branch by an advisor.

I intend to contact Britannia again, to get to the bottom of this but it is becoming
far from an "easily resolved" issue.

Channelman

By post I asked Britannia for a copy of my original application and
a copy of terms and conditions.

They sent me only the application which doesn't mention the interest
rate or even the link to the FTSE100.

I have now phoned them and asked for a copy of the terms and
conditions of the "GCIB 3 year ISA Issue 75".

I now await it's arrival.....the saga continues.

Channelman

Two weeks later and still no TERMS & CONDITIONS from Britannia.
Wonder if they have something to hide?
I've sent them a letter (snail mail) asking, once again for the T&Cs.

I have noticed that after being a member for over 40 years that
since they became part of the Co-op that they are now CR*P.

Their financial advisors, which they 'farmed out' to AXA a few
years ago have gone down the pan. The last one I spoke to was
absolute rubbish.

Also they used to give yearly reward points because they were a
mutual BS. Now investment accounts don't seem to qualify.

I have about £50k invested with them in various ISAs........all
of which will be moving as they mature.

Meanwhile......after 3 months, I just carry on waiting for the
information to get to the bottom of this "easily resolved issue".