Secure Trust Bank 183 Day Tracker Account

buffman

Careful_ly wrote: »

I
I have spoken to financial ombudsman service today and they say that it is no longer necessary to wait 8 weeks, they are sending me a form and I need to send a copy of my screen shot with the letter from Secure Trust (which I haven't had yet)

It is probably best to wait until Secure Trust Bank writes with their final answer. That way a number of people will lodge a complaint with the financial ombudsman at a similar time maximising the information that the financial ombudsman will have (e.g. details about a telephone conversation that I had with STB prior to opening the account) and increasing our chances of success.

buffman

I received a follow up letter today from Secure Trust Bank which says that they are still investigating my complaint. Looks like our case has merit as they have not thrown it out straight away.

Careful_ly

I have also had a final reply to my complaint, which I made after yours (as I was away from home when the original letter arrived).


My complaint has a final outcome that they are not going back on the decision to reduce the rate. So it is odd they are still investigating your complaint.


It states "The 3.5 Gross/AER% (3% over Bank of England Base Rate) rate was not guaranteed to remain in place indefinitely. The 183 Day Tracker account was also not a fixed term product. It follows that a change in interest rate at some point is consistent with the structure of the product. The product is consistently described in the product terms and in related promotional and marketing material, which makes it clear that rates are subject to change"


I disagree that it was clear that the 3% was variable, it certainly doesn't look so from the screen print I did at the time.

PeacefulWaters

Careful_ly wrote: »

I have also had a final reply to my complaint, which I made after yours (as I was away from home when the original letter arrived).


My complaint has a final outcome that they are not going back on the decision to reduce the rate. So it is odd they are still investigating your complaint.


It states "The 3.5 Gross/AER% (3% over Bank of England Base Rate) rate was not guaranteed to remain in place indefinitely. The 183 Day Tracker account was also not a fixed term product. It follows that a change in interest rate at some point is consistent with the structure of the product. The product is consistently described in the product terms and in related promotional and marketing material, which makes it clear that rates are subject to change"


I disagree that it was clear that the 3% was variable, it certainly doesn't look so from the screen print I did at the time.

FOS time then.

Careful_ly

I have got the form for the FOS, but I am waiting till others have their final letter from Secure trust before I send it off (as suggested by Buffman in post 22)


I have googled the 183 day account and found articles from Michelle Slade from Moneyfacts printed at the time we opened this account and she had the same understanding of the 3% as us.

atypical

I've been asked to confirm approximately between which dates I called when I was told the 3% would be guaranteed. They intend to listen to the recording to confirm a guarantee was given.

Those of us still waiting for a final response may be those who mentioned that a verbal rate guarantee was provided so they're investigating further. I think it's the wrong approach to take.

I'm also surprised they've responded in the way they have to Careful_ly. It largely doesn't make sense (consistent with the structure of the product?) Good spot on the Moneyfacts article here:
http://moneyfacts.co.uk/news/savings/savings-accounts-to-beat-the-base-rate090611/

buffman

I opened my account in May 2011. Does anyone know how I can find what 3 and 5 year fixed rate bonds were available at that time?

planteria

buffman wrote: »

Any idea how I should persue this? Write to a national newspaper money section, the Financial Ombudsman?

my first thought would be to communicate with STB first, second and third, before thinking about the press or the ombudsman.

Careful_ly

I can tell you of 2 accounts I opened near this time


Kent reliance building society opened early July 2011 5% 5 year fix.


Halifax stepped income reserve, 5 year fixed account. Year 1 3.75%, year 2 4.25%, year 3 4.75%, year 4 5.25%, year 5 5.75%. I am not sure when this became available, but was withdrawn from sale approx. 10th September 2011.


The cash I have with Secure Trust would have been in one of these if I had known what they are trying to do now.


HTH

planteria

VT82 wrote: »

Actually, I think a lot of banks are expecting the cost of funds margin, expressed as a margin above BBR, to actually reduce as Bank rate rises. In which case this product would become an even worse problem for Secure trust (if they were to honour it!).

agreed. a rise in the base rate would potentially be great for the holders of the account but disastrous for Arbuthnot.