Nationwide Flexdirect

derrick

I opened a Flexdirect April 2015 after previously having one that ended over 12 months previously and have been receiving 5% until 29th February 2016 when I only got 1% for February.

NW reasoning is that as I left the original one open I should not have got the 5% and they are relying on this statement from here, ; http://www.nationwide.co.uk/products/current-accounts/flexdirect/rates-fees-overdrafts#tab:Ratesfeesandampoverdrafts

In particular the last paragraph.

Opening multiple FlexDirect accounts: Under the terms and conditions of this account customers are only entitled to one promotional credit interest rate of 5% AER. (4.89% gross p.a). The only permitted exception to receive more than one promotional rate is if the additional account is held in joint names. Any additional FlexDirect accounts held or more than one joint account held by you and another customer will result in the credit interest rate being reduced from 5% (4.89% gross p.a) to 1% gross p.a/AER (variable) within 7 working days of the account being opened.


If you have previously held a FlexDirect account in the last 12 months, you will not be entitled to the introductory rate or offer under a new agreement and therefore you will receive the standard 1% gross p.a/ AER (variable) interest rate.


And from F&Qs, where they say you can open up to four Nationwide CA's:
http://www.nationwide.co.uk/support/support-articles/faqs/current-account-faqs/flex-direct-faqs#xtab:can-i-open-more-than-one-flexdirect-account

Can I open more than one FlexDirect account?

You can open up to four Nationwide current accounts. However, under the terms and conditions of this account customers are only entitled to one promotional credit interest rate of 5% AER. The only permitted exception to receive more than one promotional rate is if the additional account is held in joint names.
Any additional FlexDirect accounts held will result in the credit interest rate being reduced from 5% to 1% within 7 working days of the account being opened. If you have previously held a FlexDirect account in the last 12 months, you will not be entitled to the introductory rate or offer under a new agreement and therefore you will receive the standard 1% AER interest rate.


And T&C's here: http://www.nationwide.co.uk/~/media/MainSite/documents/products/current-accounts/shared/P857_ImportantInformation-TermsAndConditions.pdf where they say: -

1.4 You will only be entitled to one introductory rate or offer (where applicable) on a Nationwide Group current account product. If you have previously held the same Nationwide current account product in the last 12 months, you will not be entitled to the introductory rate or offer under this agreement



They say that any other Flexdirect account should have been closed, then a 12 month gap. Is this correct? As I find this to be ambiguous as nowhere can I find any reference to this.

Any comments and has anyone else had the interest rate reduced like this? I had no correspondence from NW, I only found out when I went into the account this morning and found the reduced interest payment.

.

matty_544

I agree with Nationwide that u should hav closed ur original flexdirect or do wat i did and downgraded it immediately after ur original promotional rate expired. Without doing so u still hold the original flexdirect and always have therefore any further new flexdirect promo rates should not have been given.

You have highlighted all the key points which explain why they reduced the interest rate and why u wernt entitled to another 5% on your latest flexdirect account.

The fact u got 10-11 months of the promo 5% rate when u really shouldnt have, should be considered a bonus and also the fact they arnt asking for it back. Don't think they need to give you warning when they are correcting a mistake that does not leave you out of any entitled money.

grumbler

derrick wrote: »

I opened a Flexdirect April 2015 after previously having one that ended over 12 months previously and have been receiving 5% until 29th February 2016 when I only got 1% for February.

NW reasoning is that as I left the original one open I should not have got the 5% and they are relying on this statement from here, ; http://www.nationwide.co.uk/products/current-accounts/flexdirect/rates-fees-overdrafts#tab:Ratesfeesandampoverdrafts

In particular the last paragraph.

Opening multiple FlexDirect accounts: Under the terms and conditions of this account customers are only entitled to one promotional credit interest rate of 5% AER. (4.89% gross p.a). The only permitted exception to receive more than one promotional rate is if the additional account is held in joint names. Any additional FlexDirect accounts held or more than one joint account held by you and another customer will result in the credit interest rate being reduced from 5% (4.89% gross p.a) to 1% gross p.a/AER (variable) within 7 working days of the account being opened.


If you have previously held a FlexDirect account in the last 12 months, you will not be entitled to the introductory rate or offer under a new agreement and therefore you will receive the standard 1% gross p.a/ AER (variable) interest rate.

...
1.4 You will only be entitled to one introductory rate or offer (where applicable) on a Nationwide Group current account product. If you have previously held the same Nationwide current account product in the last 12 months, you will not be entitled to the introductory rate or offer under this agreement

They say that any other Flexdirect account should have been closed, then a 12 month gap. Is this correct? As I find this to be ambiguous as nowhere can I find any reference to this.

I read this as you were lucky to get 5% until Feb.
According to what you quoted you weren't entitled to 5% at all.

bristolleedsfan

derrick wrote: »

Any comments

You are welcome to quote this Secure Message reply I received on the subject and point out both that Nationwide must be consistent and treat its members fairly

Subject: RE: Managing my FlexAccount & FlexDirect - Tax & interest - Interest queries

Date: 02/06/15 13:47
Unique Tracking Number: 11617158

Hi Mr ........
Thanks for your message. You'll be pleased to know you are right.
The promotional interest rate of 5% AER is for the first 12 months of a new FlexDirect Account, after this it reverts to 1% gross AER.

So you know for the future, to qualify for the promotional interest again, you will need to wait 12 months from the point you stopped receiving it, then open a new FlexDirect account.

Yes again you are right, the interest, whether 5% or 1% is only payable up to £2,500 in the account.

It's been a pleasure to clarify this for you and if there is anything else I can help you with, please don't hesitate to reply to this message or give our 24/7 Customer Service Centre a call on 0800 30 20 1. If abroad, please call +44 1793 656789.

Kind Regards,

( Removed) Initials D.B

Customer Consultant,
e-Cont@cts
http://www.nationwide.co.uk

derrick

OK, maybe I am wrong, but I do not see it is the same product, as the one left open was only receiving 1% not 5%.

.

derrick

bristolleedsfan wrote: »

You are welcome to quote this Secure Message reply I received on the subject and point out both that Nationwide must be consistent and treat its members fairly

Subject: RE: Managing my FlexAccount & FlexDirect - Tax & interest - Interest queries

Date: 02/06/15 13:47
Unique Tracking Number: 11617158

Hi Mr ........
Thanks for your message. You'll be pleased to know you are right.
The promotional interest rate of 5% AER is for the first 12 months of a new FlexDirect Account, after this it reverts to 1% gross AER.

So you know for the future, to qualify for the promotional interest again, you will need to wait 12 months from the point you stopped receiving it, then open a new FlexDirect account.

Yes again you are right, the interest, whether 5% or 1% is only payable up to £2,500 in the account.

It's been a pleasure to clarify this for you and if there is anything else I can help you with, please don't hesitate to reply to this message or give our 24/7 Customer Service Centre a call on 0800 30 20 1. If abroad, please call +44 1793 656789.

Kind Regards,

( Removed) Initials D.B

Customer Consultant,
e-Cont@cts
http://www.nationwide.co.uk

Nothing in there about closing down the original one.

.

bristolleedsfan

derrick wrote: »

Nothing in there about closing down the original one.

.

Thats what you can put across to Nationwide, whilst its T+C are crystal clear so is that Secure Message reply which another Nationwide member received and point out both that Nationwide must be consistent and treat its members fairly.

Secure message to me said nothing about closing original 5% promotional rate flex-direct, merely waiting 12 Months from time ...... and open a new ......

Yorkshire_Pud

Its always been clear to me from Nationwide's unambiguous terms that whilst one may keep a FlexDirect account open beyond the 5% period, if one wants to re qualify for a further 5% period then it is necessary to have a 12 month gap between closing the FlexDirect and opening a new one.

That's why I closed my FlexDirect last month.

derrick

bristolleedsfan wrote: »

Thats what you can put across to Nationwide, whilst its T+C are crystal clear so is that Secure Message reply which another Nationwide member received and point out both that Nationwide must be consistent and treat its members fairly.

Secure message to me said nothing about closing original 5% promotional rate flex-direct, merely waiting 12 Months from time ...... and open a new ......

Nationwide are doing an internal review and will contact me on Monday.

I have asked them to honour the agreement for the 12 month period or I shall make a complaint to the FSA, costing them more than the £20 or so it will cost to honour.

Can I ask if the secure message was to you or another member re the bold in the quote?

Yorkshire_Pud wrote: »

Its always been clear to me from Nationwide's unambiguous terms that whilst one may keep a FlexDirect account open beyond the 5% period, if one wants to re qualify for a further 5% period then it is necessary to have a 12 month gap between closing the FlexDirect and opening a new one.

That's why I closed my FlexDirect last month.

Nowhere does it mention closing down the old one before having a 12 month gap to open a new one, (I did leave a minimum 12 month gap) and whilst they say, "You will only be entitled to one introductory rate or offer (where applicable) on a Nationwide Group current account product. If you have previously held the same Nationwide current account product in the last 12 months, you will not be entitled to the introductory rate or offer under this agreement."

It is my view it is a different product as one has a 1% rate and the other a 5% rate.

.

bristolleedsfan

[QUOTE=derrick;70254572

Can I ask if the secure message was to you or another member re the bold in the quote?

.[/QUOTE]


Secure message quoted was to me, I had previously enquired in person to a Nationwide Branch and received same answer, reason I enquired by secure message was to ascertain what was going to happen in advance re Interest to the new FlexDirect acount that I opened late May 2015 rather than wait for first Month Interest to be paid,

The previous 5% Promotional rate related to the period when Four - Flex-Direct Accounts were held all attracting 5% rate until the time when everyone was notified ,,,,,,, was going to stop, after that accounts were gradually transferred out so was unclear to my memory from what specific date I would qualify again for 5% rate hence enquiries I made both to a Branch and by secure message.

Archi_Bald

derrick wrote: »

You will only be entitled to one introductory rate or offer (where applicable) on a Nationwide Group current account product. If you have previously held the same Nationwide current account product in the last 12 months, you will not be entitled to the introductory rate or offer under this agreement

How much more clearly do you want to be told that you are not entitled to 5% interest if you held a FlexDirect in the last 12 months?

Do you really think that Nationwide would tell people in their T&Cs how to exploit an omission in the T&Cs? All you are doing by raising this as an issue is risking that they will fix this loophole. You'll be massively popular on here if this happens.