Changed T&C, can I withdraw without penalty?

MySecretUser

Hey All, My Bank, Halifax, has sent me a letter stating the following. My question is, if they are changing the terms to terms that I do not agree with, can I close the account without the penalty charge of an early closure?

They are forcing the change of terms, I don't wish to continue on these new terms, I don't feel I should pay for their actions, they should?

We're simplifying out savings range to make it easier to compare our accounts. This will make it simpler to choose an account that is right for you. As a result, when your existing ISA Saver Fixed - 5 Year comes to the end of its fixed term, it will automatically become a Instant ISA Saver, which is a different account to the one we told you when you opened your ISA Saver Fixed - 5 Year.

The Instant ISA Saver is an easy access account which lets you manage your savings online, in branch and over thge phone. This account wil pay a lower rate of interest, which is similar to the rate you would have earned on your ISA Saver Fixed - 5 Year at the end of the fixed term.

Thanks.

DesG

Is the change to your detriment? Sorry, no idea what account it was expected to convert to at the end.

masonic

What is this change going to cost you? It has no bearing on your current fix.

If you want to reject the choice maturity account, just complete an ISA transfer form a month or so before your account matures, specifying the transfer takes place on the maturity date of the 5 year fix.

B_G_B

What were the terms that you agreed to when you opened the account? Accounts that revert to another type at the end of their term, often give the name of the account that they will revert to, or nearest equivalent (or similar wording), if that account is no longer available.

EarthBoy

MySecretUser wrote: »

My question is, if they are changing the terms to terms that I do not agree with, can I close the account without the penalty charge of an early closure? .

No you can't. They aren't changing anything until your five-year fixed rate is finished, so you're no worse off than before. When the five years is finished you can do what you like.

dunstonh

My question is, if they are changing the terms to terms that I do not agree with, can I close the account without the penalty charge of an early closure?

The terms are not changing on the existing account. The account you would have rolled into has changed and the terms will be different for that. So, you wont have to roll your account over into that (not that you ever had to anyway).

I don't feel I should pay for their actions, they should?

Why do you think you have to pay anything? (you dont)

PeacefulWaters

There is no detriment during the 5 year term.

There is easy access at the end of the 5 year term.

In other words, nothing material has changed.

What rate are you trying to escape from?

Aretnap

I'm not sure what account they were going to transfer you to at the end of the fixed rate period, but I'd guess it was an instant access, variable rate ISA of some sort? If so they're just putting you into an instant access, variable rate ISA with a slightly different name. You still get the rate fixed for 5 years, you were never promised a particular rate when the 5 years ended, and if you don't like the new account you can transfer out of it instantly, so it's difficult to see how you've lost out as a result of the change.

Plus five years is a long time in banking, accounts come and go so I'd imagine that the terms of the original offer gave the bank the right to change the account they switched you to after 5 years, if the account they originally intended is unavailable by them.