RBS Royalties/NatWest Mobile Phone Insurance - Beware!

olip74

Had an issue with my RBS Gold current account package so I thought I'd post the details here. If I can save even one person the hassle I've had I'll be glad.

RBS' Royalties Gold current account package includes mobile phone insurance. As permitted under the policy I registered the phone that my wife uses rather than my own, as it is more valuable (though I do own the phone).

On 27/02/14 RBS emailed me, detailing some 'key changes' to the Royalties Gold account package with effect from 01/04/14. The only change listed under the mobile phone insurance section states, "We are increasing the excess you pay from £50 to £75 if you make a claim." The footer of the email contains a button hyperlinked to a 20 page document entirely comprised of small print, that I didn't take the time to read. This includes the statement, "Your phone will no longer be covered while being used by a person other than you – even if you have given that person permission to use your phone."

On 11/07/14 the phone suffered a broken screen. When I called Royalties Membership Services the intermediary, Carphone Warehouse, refused to accept a claim on the basis that my wife habitually used the phone. I complained to RBS but was rejected as they say they notified me of this change in policy. It makes no difference that the phone is mine or that my wife wasn't even using it when it broke (it fell from the kitchen table, we don't know how).

At this point you may conclude that I should have read the small print, which is a fair enough viewpoint. However I've had this arrangement under the policy for years and I read all the small print when I took the account. I would also say that this was, to use RBS' own language, a 'key change' and should have been highlighted in the email. I also believe the email was misleading as it gave the impression that the increased excess was, in fact, the only policy change. However we'll see who's right as I'm going to complain to the Financial Ombudsman Service.

Anyway, if you are in the same situation as me, you now know that it is only your own phone that is covered!

The full text of the email is as follows (my emphasis):

Changes to your Terms from 1 April


When we make changes to your account, no matter how small, we will write to you and explain them.

We'd like to let you know about the changes we're making to your Royalties Gold Account benefits which will take effect from 1 April 2014. To help you, we've summarised the key changes below.

Travel Insurance

We're improving your cover if your trip is cancelled or cut short - you'll now be covered for cancellations that are due to certain natural disasters.

For delayed or missed departures, you will now only be covered for international trips, and no longer covered for domestic trips.

We've rewritten the Travel Insurance Policy to make it easier to understand what you're covered for.

Mobile Phone Insurance
We are increasing the excess you pay from £50 to £75 if you make a claim.

Don't forget you're automatically covered by your Mobile Phone Insurance and you can get a replacement phone within 48 hours of your claim being accepted.

You don't have to do anything
These changes will take place automatically.

Please read the leaflets attached which give you all the details of these changes, including some related to Lost and Stolen Card Assistance, Extended Warranty and the Travel Service. They also include important reminders about overdraft fees and charges and the protection in place for your money. Print or save these documents so you can check them whenever you need to.

If you'd like to talk to us about these changes please contact us and we'll be happy to help.

A reminder of your benefits
Your Royalties Gold Account gives you a wide range of benefits - have a look online at membershipbenefits.rbs.co.uk to ensure you're making the most of them. You can also call our Membership Services team on 08705 625 555 (Minicom 0870 600 0856).

Yours sincerely,

Allan Hardie
Retail Banking

The leaflets referred to weren't 'attached' (except perhaps in legal parlance), they were hyperlinked from buttons beneath the signature. The reference to 'these changes' is a bit vague as it could easily be taken to be a reference to the 'key changes' they have listed, when in fact there are a whole bunch of changes not mentioned in the email when you actually read through the 20 pages of small print.

olip74

Just wanted to follow up on this one to say that I referred this to the Financial Ombudsman Service and won compensation. RBS admitted that they had failed to draw sufficient attention to the adverse change, waived the excess and paid for a new identical handset. Obviously a three month battle for a £170 phone was a pain but we don't have much money to spare right now and it was also the principle of the thing. These products are supposed to give you peace of mind and the convenience of a speedy replacement.

Remember the vast majority of FOS complaints are upheld so, if you've been done over by one of these companies, refer it to the FOS!

Exile_geordie

Really pleased you got a good result there.