Bank closing Fixed Account early.

Thrugelmir

Ologhai wrote: »

Both the bank and the customer may experience their own unforeseens, but it's not clear to me why the customer should have to be the one to bear the brunt of the consequences of both kinds.

As a Director of a bank which faces insolvency. It's you legal and fiduciary responsibility to take all possible measures to prevent this. Banks are an integral part of a modern functioning economy. Not saying I agree with the action. But a pragmatic view needs to be taken. As the stakes are much greater than a few £'s of lost interest.

oldfella

I would have thought that at the minimum equity would demand that in the event of such a cancellation a penalty clause could be invoked

in contract terms I would also have thought that a clause like that would require an equal clause offered to the customer for a similar get out. Pity the unfair contracts legislation doesnt apply to the finance industry.

Complain then expect to escalate to the ombudsman.

latecomer

So in exceptional times for the customer it should be OK for them to get out of fixed products without penalty? Lets be honest, the bank is in bad shape but has it really got to the stage where the consumer has to pay the price? I'm sure they could propose something that's an acceptable compromise providing its still trading as a bank in the future.

jimjames

Baited breath as to which bank it is? Not seen anything on other sites about it but if they are really doing this then I'd get media and money pages involved. Would be very poor publicity for the bank and may make them reconsider their position.

But all depends on the facts and if it is as originally stated

ManAtHome

I'm going for Co-Op Guernsey http://www.co-operativebank.co.uk/offshorebanking/offshore-fixed-term-deposit

(I don't have an account with them, google page 2 knows all...).

opinions4u

ManAtHome wrote: »

I'm going for Co-Op Guernsey http://www.co-operativebank.co.uk/offshorebanking/offshore-fixed-term-deposit

(I don't have an account with them, google page 2 knows all...).

Bingo.

We will pay £100 as a goodwill payment to customers who contact us with instructions to close their Offshore Fixed Term Deposit account(s) before the close of business on Friday 15th November 2013. For joint accounts we will pay £100 to the primary account holder unless we are instructed to split this amount across joint account holders. For customers with more than one Offshore Fixed Term Deposit account the maximum goodwill payment is £100.

Outside of the UK, so UK laws, regulation and arbitration schemes don't apply.

oldfella wrote: »

Pity the unfair contracts legislation doesnt apply to the finance industry.

It does. What makes you think it doesn't?

gozomark

gozomark wrote: »

are they paying you interest in full (to term end) ?

so looks like no. When Northern Rock offshore closed they paid compensation based on the the difference between rates when fixed deposit taken out and closure plus some extra amount, but not this time

John1993_2

Ologhai wrote: »

This sounds like the kind of thing that really gets my back up. I make some fuming post to one or other forum about the unjust asymmetry that seems to exist in the relationships between 'us' and 'them', and the forum usually seems to tell me to get over it, and that I should've just read the T&Cs more carefully. .

Because in most cases the asymmetry is very much in favour of the consumer. If a company stops paying you what it promised the law will very, very quickly force them to do so in most cases.

If an individual stops paying a company (as happens very, very often, as we see on here), then the company can be given the run-around for years, and will very often end up just having to eat the loss, or sell the debt on for a small fraction of its worth. If the customer doesn't have the "financial strength" to pay, then they don't have to pay, no-one can make them.

When customers are regulated as heavily as banks, then you may have a point. Until then, you really don't.

oldfella

re UCTTR -

I thought finance was excluded, if they are not I would have thought you have a case. Its like a builder saying I cant complete the contract because its costing me too much.

opinions4u

oldfella wrote: »

re UCTTR -

I thought finance was excluded, if they are not I would have thought you have a case. Its like a builder saying I cant complete the contract because its costing me too much.

Different laws in Guernsey.