Shawbrook bank mis-selling & loophole

Meremortal

I recently opened a fixed bond with Shawbrook bank, and was surprised to find out that not only was I mis-sold the product, but they are hiding behind a weasel-worded loophole to take full advantage.

The mis-selling - When the account was open, and ready to accept money I called Shawbrook to ask if there were any planned changes to the product as it would take a few days for the money to be transferred in. This was the Monday, and I was told that there were no plans for new products that week. However, a few days later, the very same day my money had been received, I got an email to say there was a new bond with a better rate!

The loophole - Shawbrook don't offer a cooling off period on fixed rate accounts!! If I changed my mind on an ordinary easy access account I would just close it…..this is the one time consumers need a cooling off period!!! Poor old lowly consumer gets stuffed by the banks again!

Linton

I fail to see why you were "stuffed". They offered a rate that you were happy to accept.

ColdIron

You opened one product and they introduced another, in what way do you consider you were mis-sold the product you opened?

Wilkins

It's general market risk. Similar to buying, say, a phone one day and finding it discounted the next. You made a market assessment and got it wrong. We all do it sometimes.

naedanger

Meremortal wrote: »

I recently opened a fixed bond with Shawbrook bank, and was surprised to find out that not only was I mis-sold the product, but they are hiding behind a weasel-worded loophole to take full advantage.

The mis-selling - When the account was open, and ready to accept money I called Shawbrook to ask if there were any planned changes to the product as it would take a few days for the money to be transferred in. This was the Monday, and I was told that there were no plans for new products that week. However, a few days later, the very same day my money had been received, I got an email to say there was a new bond with a better rate!

The loophole - Shawbrook don't offer a cooling off period on fixed rate accounts!! If I changed my mind on an ordinary easy access account I would just close it…..this is the one time consumers need a cooling off period!!! Poor old lowly consumer gets stuffed by the banks again!

In my view, whether or not you have a legitimate complaint depends on exactly what Shawbrook said and what their plans were at that time.

What I would have expected them to say when you asked, was that they would not comment on their future plans. However if they told you something that was untrue (or deliberately misleading) then you do have a legitimate complaint. However I think your problem will be establishing what they said and what their plans were at that time.

Have you spoken to them? Do they accept that they told you that they had no plans to change the account? If not can you demonstrate on the balance of probability you did ask?

If they accept you did ask, but that they did not have any plans at that time, then I would want them to explain when they did decide to revise the terms. Is what the say more likely to be believable or not?

If you can convince the Financial Ombudsman that (on the balance of probability) you were given wrong or misleading information then he should uphold your complaint. So depending on what evidence you have it may (or may not) be worth formally complaining.