Nationwide unauthorised auto-upgraded from CashCard to FlexAccount

Kat76

Today I have received a surprise letter from Nationwide informing me that last week they had upgraded our Joint CashCard account (ie a basic, no overdraft/credit facility account) to a FlexAccount (ie a normal bank account with an overdraft/credit facility) without my knowledge or permission.

For most people this would probably have been a nice surprise...

However, we had deliberately chosen a non-credit basic account for our joint account to ensure we were not financially linked to each other on Credit Reports (CallCredit/Noddle; Experian; Equifax) to protect our individual credit 'scores'/ability to get credit.

Similarly I can imagine some people would have chosen to have a basic account to help them not get into debt, so also wouldn't have wanted this auto-upgrade to an account with a credit facility.

I'm disgusted that they could do this upgrade without informing us or seeking our permission prior to doing it. Surely it's not legal? :mad:

Now doing battle to get it downgraded again back to the account type which we deliberately opened in the first place


Anyone else out there having similar problems with Nationwide?

reclusive46

Kat76 wrote: »

Today I have received a surprise letter from Nationwide informing me that last week they had upgraded our Joint CashCard account (ie a basic, no overdraft/credit facility account) to a FlexAccount (ie a normal bank account with an overdraft/credit facility) without my knowledge or permission.

For most people this would probably have been a nice surprise...

However, we had deliberately chosen a non-credit basic account for our joint account to ensure we were not financially linked to each other on Credit Reports (CallCredit/Noddle; Experian; Equifax) to protect our individual credit 'scores'/ability to get credit.

Similarly I can imagine some people would have chosen to have a basic account to help them not get into debt, so also wouldn't have wanted this auto-upgrade to an account with a credit facility.

I'm disgusted that they could do this upgrade without informing us or seeking our permission prior to doing it. Surely it's not legal? :mad:

Now doing battle to get it downgraded again back to the account type which we deliberately opened in the first place


Anyone else out there having similar problems with Nationwide?

Your joint basic account would have linked you on your credit report anyway. An account with no credit still normally shows. So the financial association would have already been there.

Kat76

No, that is not correct. I am not currently financially linked for credit purposes to the person with which I jointly hold this account, ie none of the credit reference agencies show such a link.

There is a difference between an account which is not able to have credit (ie the basic CashCard account) and one that is able to have credit even if the overdraft limit is set at £0.

noh

The general terms and conditions are the same for all the Nationwide current accounts.
http://www.nationwide.co.uk/pdf/btp/P857_ImportantInformation-TermsAndConditions.pdf

They state
29. An “association” between the joint applicants and/or any individual identified as your financial partner,
will be created at credit reference agencies, which will link your financial records. This association, and
any others that either of you may have, will be taken into account in all future applications by either or
both of you. This linking will continue until one of you successfully files a “disassociation” at the credit
reference agencies.

These are the conditions you agreed to when you opened your Card Cash account.
Exactly the same general conditions apply to the Flex Account.
Nothing has changed.

Hominu

Kat76 wrote: »

There is a difference between an account which is not able to have credit (ie the basic CashCard account) and one that is able to have credit even if the overdraft limit is set at £0.

When you apply for a cash card account, a full credit application is processed (for both in the case of a joint account).

You can not apply for an overdraft with the cash card account, but you can still go overdrawn on the cash card account.

Nationwide reserve the right to place your cash card account on your credit report and to financially associate you with your partner.

Saying that, I've had a FlexAccount for 13 years and they have yet to state on any credit report that I have it.

tattycath

My DD has just received one of these surprise upgrades today. She is still learning how to handle her money and did not want an overdraft facility. :mad: hopefully she"ll be able to downgrade it again.

Gromitt

tattycath wrote: »

She is still learning how to handle her money and did not want an overdraft facility. :mad: hopefully she"ll be able to downgrade it again.

If its like other similar basic accounts, she'll still be able to spend the same money twice, thereby putting her in an overdraft, whether she wants one or not. The only way to prevent that would be to only use ATMs, do not use the card for stores, online or telephone purchases.

tattycath

Gromitt wrote: »

If its like other similar basic accounts, she'll still be able to spend the same money twice, thereby putting her in an overdraft, whether she wants one or not. The only way to prevent that would be to only use ATMs, do not use the card for stores, online or telephone purchases.

Thank you for this. Up to press she's never thought she could go overdrawn with the other account. Now she has been upgraded without consultation and told she can go overdrawn. I'll have a look at it for her when she gets in. I assume that the overdraft facility is free but if she goes overdrawn there will be interest charges etc.

Gromitt

Any such payments are likely to attract a £15 charge each ("Paid item fee") plus 18.9% EAR. If a payment fails due to insufficient funds, it may attract instead a £15 "Unpaid item fee", plus a £20 fee in each month one of these occurs. Its normally difficult to get into much debt with a cash card account as transactions which are not yet authorised will be declined if the account has insufficient funds.

See here:
http://www.nationwide.co.uk/pdf/btp/P7430_CurrentAccountsInterestRatesAndCharges.pdf

The first time they are usually decent enough to refund the charges however.

System

When did you open the cashcard account?

It may be that it was opened before credit sharing was allowed as others have reported that their cashcard account shows on their credit files.

Kat76 wrote: »

Today I have received a surprise letter from Nationwide informing me that last week they had upgraded our Joint CashCard account (ie a basic, no overdraft/credit facility account) to a FlexAccount (ie a normal bank account with an overdraft/credit facility) without my knowledge or permission.

For most people this would probably have been a nice surprise...

However, we had deliberately chosen a non-credit basic account for our joint account to ensure we were not financially linked to each other on Credit Reports (CallCredit/Noddle; Experian; Equifax) to protect our individual credit 'scores'/ability to get credit.

Similarly I can imagine some people would have chosen to have a basic account to help them not get into debt, so also wouldn't have wanted this auto-upgrade to an account with a credit facility.

I'm disgusted that they could do this upgrade without informing us or seeking our permission prior to doing it. Surely it's not legal? :mad:

Now doing battle to get it downgraded again back to the account type which we deliberately opened in the first place


Anyone else out there having similar problems with Nationwide?

Kat76

That's not a clear cut one...

It was originally my partner's personal account for ages, and I was added to it to make it a joint account back in mid 2011.

I believe it was originally opened as a FlexAccount, then Nationwide split FlexAccount in two, some got CashCard account (ie him) and some got Flex with OD etc.

I don't believe we ever signed a "credit agreement" as the account doesn't allow it to go overdrawn, be it "authorised" or "unauthorised", but I will need to carefully check through our paperwork at the weekend.

We both know it wasn't listed on either of our credit reports (checked with all 3 agencies) but think that, now Nationwide have stealthly upgraded it to a credit-able account, this might change and financially associate us on both our credit reports through listing it.