Northern Rock/Virgin ISA hidden option

Norman_Castle

I've got a Northern Rock, now Virgin isa about to end. The only options offered, and promoted, are a choice of a 1 or 3 year isa or if I plan to withdraw the money, a non isa account. I am planning to move the money to another providers isa. Not wanting to lock in with Virgin I had to phone them to ask what happens if I choose none of the options. The money apparently is moved to an 0.75% isa with them from where it can be moved to another provider. The website is misleading, only offering the three options and not showing the outcome of choosing none, or even suggesting there is an alternative. It is apparently in the terms and conditions but I have failed to find it.
Personally I find this a bit sneaky and underhand. Not how I want a bank who I'm trusting with my money to behave.

N1AK

Report the behaviour to the FSA and get some screen captures to go with it. I also think that is very misleading behaviour and think you will be doing others a favour by highlighting it.

Stompa

Have they not written to you detailing the options available?

dunstonh

Does your maturity letter not state on there what happens if you fail to choose an option? You would expect the do nothing outcome to be documented (not necessarily as a tick box option but worded as what will happen if you do nothing).

Norman_Castle

[FONT=&quot]Account maturing - my options[/FONT]

[FONT=&quot]Account maturing – What next?[/FONT]
[FONT=&quot]Projected balance on maturity:[/FONT]
[FONT=&quot]£000000[/FONT]
[FONT=&quot][IMG]file:///C:\DOCUME~1\me\LOCALS~1\Temp\msohtmlclip1\01\clip_image002.gif[/IMG][/FONT]
[FONT=&quot]Choose a new account…[/FONT]
[FONT=&quot]To continue earning interest without hassle or delay, why not check out the following range of new accounts. From easy access to a fixed rate of interest, we’re sure to have something to meet your needs. [/FONT]
[FONT=&quot]You can choose to reinvest all of your funds into one account, or split your money between two; whatever works best for you. Simply click ‘next’ to review your new account options. [/FONT]
[FONT=&quot]Please note[/FONT]
[FONT=&quot]If you plan to withdraw some or all of your money after this account has matured, you should select an account which allows access and transfer the required amount. [/FONT]
[FONT=&quot]After maturity you will then be able to log-in to your new account, and access these funds as required. [/FONT]
[FONT=&quot]New account options[/FONT]
[FONT=&quot]Projected balance on maturity:[/FONT]
[FONT=&quot]£000000[/FONT]
[FONT=&quot][IMG]file:///C:\DOCUME~1\me\LOCALS~1\Temp\msohtmlclip1\01\clip_image002.gif[/IMG][/FONT]
[FONT=&quot]You can choose to reinvest all of your funds into a new Cash ISA, or split your funds between a Cash ISA and a variable rate account (non Cash ISA).[/FONT]
[FONT=&quot]Selecting a variable rate account (non Cash ISA) will allow you to withdraw a proportion of your savings if required. However please note that funds transferred to a non Cash ISA will lose their tax free status.[/FONT]
[FONT=&quot]Simply review and select your chosen account/s, then enter the amount you would like to invest. [/FONT]
[FONT=&quot][IMG]file:///C:\DOCUME~1\me\LOCALS~1\Temp\msohtmlclip1\01\clip_image002.gif[/IMG][/FONT]
[FONT=&quot]Cash ISAs[/FONT]
[FONT=&quot]1 Yr Virgin Fixed Rate E-ISA Issue 23 [/FONT]

[FONT=&quot]View Key Product Features[/FONT]

• [FONT=&quot]Rate 2.65% TAX-FREE1/AER2 [/FONT]
• [FONT=&quot]Guaranteed interest rate until 24/11/2013 [/FONT]
• [FONT=&quot]Allows transfers in from existing Cash ISAs[/FONT]
• [FONT=&quot]Tax free savings, up to current annual allowance of £5,640 per tax year[/FONT]
• [FONT=&quot]Deposit from £1 to max of £5,640[/FONT]
• [FONT=&quot]Once the issue is withdrawn additional funds can be deposited for a period of 30 days only[/FONT]
• [FONT=&quot]Withdrawals will be subject to 60 days loss of interest[/FONT]
• [FONT=&quot]Available to customers over 16 only[/FONT]
• [FONT=&quot]For Terms and Conditions, please click here [/FONT]

[FONT=&quot]3 Yr Virgin Fixed Rate E-ISA Issue 24 [/FONT]

[FONT=&quot]View Key Product Features[/FONT]
[FONT=&quot]Variable rate account (non Cash ISA) – charge-free, instant access to your funds[/FONT]
[FONT=&quot]Please note that funds transferred to a non Cash ISA will lose their tax free status. [/FONT]
[FONT=&quot]Virgin Easy Access E-Saver 4 [/FONT]

[FONT=&quot]View Key Product Features[/FONT]

---

Terms and conditions of the new accounts followed.
Hopefully this hasn't included my bank details. Would be interested if anyone with the same e-isa issue 25 can see any other options or has received paper info. I don't have any paper account closing documents. It's an online account with online notification.

Norman_Castle

Email notification

---

Your Fixed Rate Cash E-ISA matures on Saturday 24 November 2012 We wanted to remind you that your Cash E-ISA is maturing very soon and so far, we haven't had any instructions from you.

If you've recently submitted your instructions online or you've decided you dont want to, that's fine. But if you want to secure a new Fixed Rate E-ISA, now's the time.

Don't delay - the great rates we're offering are exclusive to you, and are higher than what we're offering to new customers.

It's quick and easy to secure your
new Cash E-ISA You have until 6pm on Friday 23 November to secure your new Cash E-ISA – simply follow the steps opposite. Be quick, we can only guarantee they'll be available until this date.

To secure a new Fixed Rate Cash E-ISA with us now, just sign on at myvirginmoney.com

We hope you continue to save with us.

Kind regards



Rob Reed
Head of Existing Savings Business


Go to myvirginmoney.com

Select 'Customer sign on' from the top right and then 'Savings and investments'.

Enter your customer ID and password, and answer the security questions.

Select your maturing Cash E-ISA by clicking 'View'.

Follow the on-screen instructions to secure your new Cash E-ISA.

Stompa

Norman_Castle wrote: »

I don't have any paper account closing documents. It's an online account with online notification.

FWIW, even with online accounts, these days I generally get a letter shortly before maturity detailing what happens next and what will happen if I do nothing.

The document here:

http://bank.virginmoney.com/savings/pdf/3_year_fixed_rate_e_isa_issue_27-key_product_info.pdf

says:

After the fixed rate period

After the fixed rate period your account will become a variable rate
Cash ISA.

We will contact you before the end of the fixed rate period to let
you know the options available to you, as well as advising you of the
interest rate currently payable on the variable rate account.

Norman_Castle

Thanks, I knew it would be somewhere. Recent pc failure left me little time or patience for this.
This We will contact you before the end of the fixed rate period to let
you know the options available to you, as well as advising you of the
interest rate currently payable on the variable rate account. hasn't happened. The options offered do not include leaving it to become an isa with access. I've also not been advised about the interest rate on the variable account. This could have been provided in one short sentence The options offered promote their two isa's or direct me to a non isa account if access is required.

Edit. This was marked on my calender and Northern Rock, welcome to your account paperwork, has been left out for the last month to remind me about this account closing. If any new paperwork had arrived it would have been added to this. When I phoned them I asked why I hadn't been told this, I was advised it was in the terms and conditions, not that the information had been provided. I got the impression I wasn't the first to ask.
Has anyone with the same account received more information than me?