Yorkshire Building Society/Credit Suisse ISA

rosiebear99

Hi I'v received a letter from YBS regarding my ISA which i took out in 2011. Basically they have been fined for false information and are willing to pay back my money with interest. Anyone else in this situation and what is the best way forward please.

Angreajam66

I received the same today. Bit gutted to be honest as I was expecting a bigger return. Not sure whether I should accept and take the 4.18%. It also says the interest quoted is a minimum. I don't think they should get away with misleading advertising claims. I'm not sure what other redress we may have? Be good to get some advice

taylornj

Might be worth having a look at these...

https://forums.moneysavingexpert.com/discussion/5044893

https://forums.moneysavingexpert.com/discussion/5051181

Not sure if same or related.

TheCrips

What to do? take the money and run or stay with it, I have been offered 4.52% with one year to go, currently I have earned 16.29% (3.85% AER)

dunstonh

The option is to continue with the original terms as published or take the money now. Nothing has actually changed on the product. Its just you now have an early get out option should you wish to take it.

I don't think they should get away with misleading advertising claims.

They are not. That is partly why they got fined.

I'm not sure what other redress we may have?

The outcome was agreed with the FCA. you have no other redress options unless you fancy taking them to court.

TheCrips

I have had a reminder about the option to claim compensation, don't think that I was misled as such just the expectations were exagerated. Is there anywhere I can get advice on whether to follow this up with a claim?
Thanks

bowlhead99

TheCrips wrote: »

I have had a reminder about the option to claim compensation, don't think that I was misled as such just the expectations were exagerated. Is there anywhere I can get advice on whether to follow this up with a claim?
Thanks

Just my personal opinion, but if it were me I wouldn't bother with a claim.

As dunstonh says, their regulator was happy with their approach of taking a fine and allowing everyone to exit without losing any money and taking a fixed positive return at a reasonable compound interest rate if they wanted it. So, what do you need to 'claim' for and what do you think you would get paid out? IMHO you would not get a better outcome.

They are saying that if you didn't like this product they will wind back the clock for you and you can have a known fixed rate of interest. Maybe if you had wanted to just have a fixed interest fixed term savings account at the time, you could have shopped around and found a better one - companies do special offer rates and loss leaders all the time to attract customers. However, they don't have to give you something that matches the very highest paying product of the day.

Alternatively you might have found a structured stock market product with slightly better terms. Generalising, the ones with higher potential returns also have higher risks of getting lower or negative returns - they could have been better for you than the CS product in hindsight, but nobody knew quite how the markets eventually turned out. Alternatively you could have put all your money in the stockmarket and made a monster return, but also it would have had massively more risk, which clearly you were not looking for, given you bought the CS product.

I think whoever reviewed your 'case' for compensation, when you've been offered some sort of reasonable fixed rate return and an earlier exit than the standard terms if you now decide you don't like the terms, would not find you deserve better.

So, just like you had when first buying the product, you have a choice - have a known amount of cash in your pocket now, or an unknown amount of cash at maturity. The known amount of cash has changed and so has the time to maturity, and hopefully you now understand the terms of the product. If you still don't understand the terms of the product then it's not suitable for you, so you should exit, and they are pointing you that way by saying they perhaps would not have sold it to you in the same way today, and if certainty is what you want, you should exit.

So, known amount of cash now or a different unknown amount at maturity? The choice of having a larger known amount of cash in your pocket now is not really on the table. Sure, you can ask for it but you are probably on a hiding to nothing. If it were me I would not pursue it. Still, I am not the sort of person who would have bought the product in the first place.

Some people who have heard about the billions being paid out in compensation for PPI will no doubt want to chase a potential windfall without any thought to how or why they should have one - if you believe the media, we're living in a compensation culture these days. However in this case, it is the bank that's come to you, and offered you the windfall / early exit, in line with what they promised their regulator that they would do. You just need to sign on the dotted line to take it, or say no thanks I'm happy holding it to maturity.

TheCrips

bowlhead99 wrote: »

Just my personal opinion, but if it were me I wouldn't bother with a claim.

As dunstonh says, their regulator was happy with their approach of taking a fine and allowing everyone to exit without losing any money and taking a fixed positive return at a reasonable compound interest rate if they wanted it. So, what do you need to 'claim' for and what do you think you would get paid out? IMHO you would not get a better outcome.

Alternatively you might have found a structured stock market product with slightly better terms. Generalising, the ones with higher potential returns also have higher risks of getting lower or negative returns - they could have been better for you than the CS product in hindsight, but nobody knew quite how the markets eventually turned out. Alternatively you could have put all your money in the stockmarket and made a monster return, but also it would have had massively more risk, which clearly you were not looking for, given you bought the CS product.

I think whoever reviewed your 'case' for compensation, when you've been offered some sort of reasonable fixed rate return and an earlier exit than the standard terms if you now decide you don't like the terms, would not find you deserve better.

.

I knew what I was getting into, I did not expect the huge interest rates quoted, too good to be true. The rate I have been offered matches or beats the ones available at the time. I have calculated as best I can that if I leave the money in and the market does as well as it could it will not beat the rate offered so I am seeing this as a windfall and have 3+% accounts I can put the money in. Thanks for the confirmation.

It is my pension so I am risk averse which is what attracted me to it in the first place.