Name and Shame: Alliance & Leicester

buses7675

Hi,

If you want to transfer is quickly, and get a decent interest rate, why not open at A&L Online Saver, which currently has a rate of 5.35%!

Cheers

Steve

blinko

alliance and leicester usually gets a beating in the sunday papers money supplements too !!

Paul_Varjak

If anyone can recommend a bank/building society that does not get up to the same tricks, I will happily change to them! In the meantime, it is easier switching accounts with the same institution to keep the interest rate up.

I assume a parent can be a nominee for a child on A&L's 5.35% savings account?

bluenose1

I know this is going off the subject of childrens accounts but I must tell you about what A and L are currently doing to my mum.
Her credit card which she has had over 10 years was used fraudently just before christmas. A company called Armenia Fund was paid £500.
Despite promptly telling them and completing waiver forms they issued they are saying as she has not completed 2nd set of forms they sent (not rec'd by my mum) that she will have to pay this debt herself. They have been most unhelpful to her over the phone. I spoke to them hoping to resolve the situation and I have never spoken to a more incompetent, unhelpful organisation in my life.
My mother is a widow, luckily she has family who will pursue this matter with the Financial Ombudsman but I wonder how many other vunerable people have been swindled.
I know that the Banking Code clearly states that the A and L should have refunded this money to my mum, but despite several telephone calls and letters we are still being fobbed off.
I would never now consider using them for a credit card. My savings are currently there and I am so annoyed I intend to move them.
I feel really frustrated and annoyed with the attitude of their organisation.

MarkyMarkD

The credit cards are operated by MBNA, not A&L.

I wouldn't expect MBNA to speak helpfully to you about your mother's account, either. Unless she has given you authority to act on her behalf, they are not allowed to talk to you about it.

MSE_Martin

The following is an email I received from Gregory Campbell, MP for East Londonderry, who is also a MoneySaver

Martin,
I saw your piece last week on Alliance & Leicester's move ref. children's savings accounts. I have tabled an Early Day Motion in Parliament regarding this. Find it below, if you could ask your subscribers to get their MP's to sign this motion it may well force A&L into a rethink. I have also contacted MoneyMail who are preparing a piece for next week's paper (Daily Mail).
When writing or telephoning MP's all a constituent has to do is briefly outline the terms of the Motion and ask them to 'Sign EDM 105'.
Thanks again
Gregory Campbell MP for East Londonderry

EDM 105
SAVINGS ACCOUNT RATES REDUCED FOR CHILDREN
17.05.2005

Campbell, Gregory
That this House notes that the Alliance & Leicester with personal customer balances of almost £20 billion and secured mortgage advances of £28 billion which offered a Firstsaver Children's Account with a competitive rate of interest at 5.25 per cent. decided to close the account to all new savers and reduced the interest rate to all existing young customers to just 3.65 per cent.; regards this decision as deplorable and designed to deter from rather than encourage young people and their parents from personal savings which building societies and former societies should be doing.

Cagey

Surely A&L are a commercial operation & have every right to withdraw products that they think are not viable. They are not in the busness of running the governments hairbrained schemes.

MarkyMarkD

The English of the EDM is deplorable too. The last phrase is particularly horrible. I think he meant "regards this decision as deplorable and designed to deter young people and their parents from personal savings, rather than encouraging them as building societies and former societies should be doing".

I don't see why "former societies" should be picked on any more than banks which were never building societies, either.

And I totally agree with Cagey - if the Government wants to offer loss-making savings accounts through National Savings, that's their choice. Members of parliament (including non-Labour ones like Mr Campbell) shouldn't blame companies for failing to do so.

I certainly shan't be encouraging my MP to sign this EDM. I don't expect that he would have wanted to in any case because he's quite a sensible chap

lipidicman

This strikes me as really worrying for anyone with the A&L ISA with a transfer penalty - what will you do if they cut this rate too?

isasmurf

A&L's current business strategy is targeted towards 'direct' business, so I can't see them cutting the Online ISA or any other internet based account for the forseeable future. In fact, their recent Annual Report suggested they'd be expanding the range of online savings accounts.