Lloyds putting my money into poor rate investment without authorisation.

robbedbybanks

Last year I put some cash into a 3.4% fixed rate investment with Lloyds. The deal was I had to inform them by the end of the term - the 25th July 2013 - if I did not want to reinvest for a second year. In April I was told the rules had changed and their new conditions - effective 1st July 2013 - would be (quote) In the absence of instructions to the contrary being received for a fixed term deposit contract denominated in sterling, before 4.00pm (UK time) on the working day prior to the maturity date, we will, for a fixed term deposit contract where the fixed period is one year or more, pay the entire balance (including any interest earned and paid) in to the associated principal servicing account.

So when the one year term ended on the 25th July I assumed the money would be returned to me. But no. Lloyds have rolled the investment over, meaning there would be penalty charges for termination. Is it me? I'm not getting sensible answers out of Lloyds who say I had authorised this in a phone conversation and rudely implied my memory might be at fault. Since the rate has now dropped to a pathetic rate of 1.1% why on Earth would I want to do that?

Anyone able to suggests how should I go about dealing with this? I presume the new conditions were designed to stop this as it's plainly wrong and I could even suspect there might be an incentive to do it on the part of someone who receives a bonus for this.

pinkdalek

You just speak to them and tell them of your instructions on what you now wish to do with your investment. The account it has "rolled over" into is one that you can access/re-invest/transfer elsewhere.

Seriously don't understand what your problem is here, you haven't ased them to re-invest in a fixed term account, you invested it for 1 year and fixed, how does the bank know what you plan to do with the funds on maturity? Your fixed term account has come to its end, it is now yours to do with as you please. Would you have been pleased if they had re-fixed it for another 12 months without your consent?

It is your savings account and you are responsible for it, the bank just follow your instructions. If they don't have any instructions then how are they expected to react?

As for 1.1% in an accessable account, may well be low but it is average and comparable to the other main street banks.

dalesrider

robbedbybanks wrote: »

I'm not getting sensible answers out of Lloyds who say I had authorised this in a phone conversation.

What telephone conversation? When was this made?


See my SIG......

Never EVER assume anything.

opinions4u

The terms and conditions for your account never changed unless they put that change in writing. You were required to give instructions and didn't, so the deposit rolled over for another year in accordance with the original T&Cs.

You should complain and will probably get what you want. But you shouldn't have relied on T&Cs in place for accounts opened at a different point in time to expect something different.

usignuolo

As I read this, the new condition says if you do not let the bank know what you want to do with a fixed term sterling investment by 4pm on the day before the maturity date, then on the day of maturity, the entire amount including interest will be deposited into the main account servicing the investment.

You gave no instructions and so assumed they would put it into your main account. They did not, moved it into another account with a low rate of interest and now will not allow you to remove it without penalty.

You have challenged this and been told by the bank, that you authorised this new investment in a telephone call. Which conveniently for them they say you have forgotten.

Do they have a record of when this call took place?. Who took the call? Even more importantly have they got a recording of it? If they cannot answer these questions, then I do not think they have a leg to stand on. If I were a betting man I would say they simply made a mistake but the person who made it is not admitting it. The reason you are having a problem is the rules say you cannot get out of the agreement once made without a penalty. They have no procedures for admitting it should never have been set up in the first place and cancelling it.

How far up the tree have you escalated it?

Continue to demand the evidence of this authorisation and meanwhile take it to one of the sunday newspapers columns which help with this sort of thing. And tell the bank you are doing so and also threaten the bank with the ombudsman for mis-administration.



Good Luck