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MSE News: Post Office cuts rates, but only tells savers after

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Comments

  • I've just called up. They have confirmed that ALL Online saver 5 accounts are still on 3.17 due to 'not giving enough notice'. This 'may drop in the future though'.

    Great news
    Too late PO!! That'll teach ya! Thanks to this forum I raked all but £4 out the day before it was supposed to go down.
  • I have just picked up on the news that the Post Office have reduced saver rates from 17th January 2013. I have received no information about this from the Post Office and only today transferred funds maturing from another account into the PO. It is on 30 day notice so I will have to get on the phone tomorrow and see if the rate really has dropped from 3% to 2.75% and may request the return of today's transfer.

    This certainly has been managed very badly and I am not amused.
  • roddydogs
    roddydogs Posts: 7,478 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Out of interest (no pun intended) those who took their money out, what rate did you "Park" your money at?
  • JGal
    JGal Posts: 167 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    PO Online Saver Issue 5, "Key Information and Terms and Conditions document for the Post Office® Online Saver", 15062011/a.

    Changes in the Interest Rates

    31) We may change interest rates on your Account (and introduce or change different rates applicable to different Account balances) for any of the following reasons:

    a) if there have been changes in the Bank Base Rate or if we have good reason to expect changes;
    b) if changes have been announced by our competitors in the rates paid on accounts that are broadly comparable with your Account;
    c) if we need to reflect any regulatory requirements or
    guidance, a decision or recommendation of any court or
    ombudsman or any change in taxation or the law that impinges on the interest rates that we pay to investors;
    d) to ensure our business is sustainable in the long term;
    e) to reflect the rates being paid on our other accounts so as to ensure that the interest rates we pay reflect the features of our accounts (so that, for example accounts with longer notice periods receive a higher rate of interest, other features being the same).

    Where we make an interest rate change on your Account that is to your disadvantage we will notify you of the change at least 14 days before it is due to take effect in accordance with the provisions of Conditions 60 – 66.

    If you object to any such notified change, you must inform us with 60 days by writing to us and we will treat this as notice of your intention to terminate the Agreement and close or switch the Account. You will not be charged for closing or switching your Account in these circumstances. In the absence of notice to the contrary, you will be deemed to have accepted such change with effect from the notified effective date.

    32) We do not have to change the interest rate of your Account when the Bank Base Rate or other interest rates change. However:
    i) We will notify you if the margin between the interest rate on your Account and the Bank Base Rate has increased to your disadvantage by more than 0.5% looking back:
    • over the previous 12 months, or, if that is shorter,
    • to the last time we notified you under this clause.
    ii) We will notify you under this clause by writing to you
    at your Registered Address within a reasonable time and we will also:
    • tell you about our other Post Office® savings accounts (and we will help you to switch to one of these if you want to); and
    • remind you that you can withdraw all the money in your Account if you want to (for which there is no notice period or charge).

    33) Where applicable, we will notify you of any change to interest rates on your Account by:
    a) updating the Website; or
    b) updating information provided through the Customer Service Centre; or
    c) by placing advertisements in the Daily Telegraph and the Daily Mail (or any other two daily newspapers circulating throughout the UK).

    34) An accidental error or omission in notifying you of a change to the interest rate on your Account will not invalidate the change.

    Changes to our Agreement

    60) We reserve the right to amend or remove any of the terms and conditions of the Agreement to:
    a) make them easier to understand, fairer or to correct mistakes;
    b) reflect changes in the law, regulatory guidance or in any code of practice;
    c) improve the service offered to you or to make it moreefficient or cost effective;
    d) reflect a decision or recommendation of any court or ombudsman.
    For the purposes of this provision, any proposed amendment or removal of the terms and conditions of the Agreement will be referred to as a ‘change’.

    61)
    Where we reasonably believe a change is to your advantage, it will be applied immediately without prior notice and we may notify you of any such change in accordance with clause 66.12 13

    62) For all other changes to the terms and conditions of the Agreement, we will notify you of the change at least 2 months before it is due to take effect by whatever means we, in our sole discretion, deem appropriate. If you object to any such notified change, you must inform us of this within 2 months by writing to us and we will treat this as notice of your intention to terminate the Agreement and close or switch the Account. You will not be charged for closing or switching your Account in these circumstances. In the absence of notice to the contrary, you will be deemed to have accepted such change with effect from the notified effective date.

    63)
    Where applicable, we will notify you of any changes by:
    a) placing notices on our Website; or
    b) taking out adverts in the Daily Telegraph and the Daily Mail (or any other two daily newspapers circulating throughout the UK); or
    c) writing personally to you; or
    d) placing notices within Post Office® branches.

    64)
    If we decide to add a new service or feature to your Account, this will not be treated as a change and any such addition will be applied immediately without prior notice.

    65)
    An accidental error or omission in telling you about a change to the terms and conditions of the Agreement shall not invalidate the change or the Agreement.

    66) If we have made a major change or a lot of minor changes to the terms and conditions of the Agreement in any one Year, we will give or send you a copy of the new terms and conditions or a summary of the changes.

    ==================================
    To anyone saying not enough notice was given, the two national newspapers wouldn't be adequate, email notification should be expected in advance, etc, please identify which point(s) in the T&C above have not been followed. It's OK saying the PO should have done this, that and the other but I can't see that they've contravened their T&C.
  • I guess clause 63 should state and rather than or after each point. That is all lines of communcication should be used.

    I think the guidelines from the FSA are trying to tighten up how savers are serviced. I have not seen the notices placed in the Daily Newspapers and as that is the only one of the parts of clause 63 that I understand was adhered to. I personally have not had an email although some seem to have, albeit late in some cases.

    I have written to the Customer Service team to request they review their practice and that they should strive for even better communication of such changes.

    I don't wholeheartidly agree with the reason for changing the rate for existing savers, it would be more agreeable if the rates were reduced for new savers only.
  • roddydogs
    roddydogs Posts: 7,478 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    But you cant get "New Savers" as this a/c is closed.
    PS did post 33 read post 30?
  • From my personal conversation with Post Office Customer Care I was not given any information along the lines mentioned in post 30. I hope they are having to redo their rate change with the right kind of notice and use as many channels available.

    My comment with regard to new savers related to a Financial Organisation having to change interest rates because of market conditions and the new regime should be for business going forward - why do all account holders need to be affected ? I am assuming they have onwardly lent the savers cash and the rates for lenders seem not to be altering. Just the spread and profit widens.
  • boo-hoo
    boo-hoo Posts: 34 Forumite
    Did anyone else receive a letter yesterday from Post Office Savings? Apparently they were wrong and have re-instated my interest and backdated. No apology though for first letter when they said I was wrong and to read terms and conditions. Me thinks people power won but really shouldn't be the case. Anywhere else it's called bullying.
  • innovate
    innovate Posts: 16,217 Forumite
    10,000 Posts Combo Breaker
    Only letter I got from them yesterday was to "alert" to an unusual number of withdrawals that had been made recently. The only withdrawals were made recently were on Jan 20 (by myself).

    Fills me with a lot of confidence that they tell me over a week after the event by snail-mail, despite having my email address, and 2 phone numbers for me. All the transactions were, of course, to a nominated account.

    I am waiting for their letter / email now about re-instating the 3.17%.
  • JGal
    JGal Posts: 167 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    I guess clause 63 should state and rather than or after each point. That is all lines of communcication should be used.

    I think the guidelines from the FSA are trying to tighten up how savers are serviced. I have not seen the notices placed in the Daily Newspapers and as that is the only one of the parts of clause 63 that I understand was adhered to. I personally have not had an email although some seem to have, albeit late in some cases.

    I have written to the Customer Service team to request they review their practice and that they should strive for even better communication of such changes.

    I don't wholeheartidly agree with the reason for changing the rate for existing savers, it would be more agreeable if the rates were reduced for new savers only.
    Affected account holders might think it should they say and, but it clearly says or and it looks like they did two (a &b) and possibly a third (d). The clanger the PO dropped is sending out email notifications after the change - nothing against their T&C, but not good form either, which I believe has aggravated people more than not sending out an email at all.

    Reference the FSA web site provided in a connected post..
    http://www.fsa.gov.uk/consumerinformation/product_news/banking/know_your_rights/managing

    Bank accounts: Know your rights

    Your bank may want to make changes to your account, such as to the interest rate or overdraft limit. Find out how much notice your bank must give you and your rights if the terms on your account are set to change.

    Will my bank tell me if it drops the rate of interest on my account?

    If your bank wants to reduce the rate of interest it pays you on credit balances on a current account, a card-based account or (in some cases) an instant-access savings account, it generally has to tell you two months before it does.

    The exception to this rule is if the interest rate on your account is linked to an official rate – such as the Bank of England base rate – and it moves automatically in line with any change in that rate. This is sometimes known as a ‘tracker rate’.

    For other savings accounts, such as those with a notice period or cash ISAs, a bank should give you reasonable notice that it proposes to make a material reduction to the interest rate.

    A reduction is ‘material’ if the balance of your account is £500 or more and the interest rate falls by more than 0.25% at one time or by 0.5% or more over the previous 12 months.


    To me it seems it is the FSAs rules that are weak. Why did they feel the need to add "(in some cases)" to the rules? Also the editorial by Guy Anker conveniently misses out this portion of the text when explaining the case. In his letter to the FSA he ought to ask why they have this potential exclusion.
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