New NW current account T&Cs - dodgy?

tabbycat2k

Received some new terms and conditions from Nationwide in relation to my current account. What does anyone think of this?


"11. A new clause 63 will be added as follows:


63. We can transfer all of our rights in relation to your account to someone else. We can transfer all of our obligations in relation to your account, but only to someone we reasonably consider capable of performing them equally as well as us and who is authorised or recognised by our regulator as being able to accept deposits. This won't reduce any of your rights in relation to your account"


This appears to suggest that NW can transfer my account to any other bank - there are no caveats, scenarios or restrictions.


I rang them - they said to do with FSCS regulations - FSCS said nothing to do with them, ring Ombudsman. Ombudsman said can only deal if an unresolved complaint, speak to the FCA - the banking regulator. Having heard what the clause was they offered me to refer a complaint to their dedicated team who deal with Unfair Contract Terms!!! I rang Nationwide to give them the chance to say something sensible - like what is this term for and when would they invoke it and they said would escalate but it would have gone through their lawyers and many pairs of eyes so highly unlikely to change. (So if I don't accept, I can close my account).


Any views or suggestions? I got these changes on a leaflet with my statement, P3090 (July 2016).

bigadaj

Haven't noticed this myself, I think it might be due to banks and building so cities having to write living wills as a consequence of the gfc in 2008.

So this is their way of saying if they went bust then your account could be transferred to a new entity to fulfil the wishes of the regulator.

Wouldn't worry about it, very unlikely to occur and if it did and you got transferred you can always close the account. It's another minor reason to hold multiple current accounts though, a single one creates real issues if you have any problems, notwithstanding the fact you can make hundreds every year from the various incentives, rewards and interest that are on offer.

tabbycat2k

Hi bigadaj. You are probably correct as to the intended use except for the fact that (1) the FSCS and the FCA don't require it in the event of a bank/building society going bust and (2) as it stands the clause could be used outside of that eventuality, eg they decide to sell up or "relinquish" some accounts. It is, in my opinion, too vague and therefore potentially an unfair term.

bigadaj

tabbycat2k wrote: »

Hi bigadaj. You are probably correct as to the intended use except for the fact that (1) the FSCS and the FCA don't require it in the event of a bank/building society going bust and (2) as it stands the clause could be used outside of that eventuality, eg they decide to sell up or "relinquish" some accounts. It is, in my opinion, too vague and therefore potentially an unfair term.

Possibly, it's probably a result of nationwides own lawyers drafting it and being more concerned with ten regulators and their own interests than the consequence to customers.

Their view as an individual is that you can take your custom elsewhere if you want, it's happened in other cases such as the HSBC interpretation of Kyc and identity verification. We've also seen instances of lloyds shutting people's banks at short notice for no apparent reason.

Can't say it bothers me too much as a nationwide member.

tabbycat2k

I certainly agree with you that it's more about NW's own interests than ours! This stance does seem to be a trend over the last decade or so (I think I've been with them for 2 or 3 decades!) It's still an unreasonable contract term though.... Thankfully I have a couple of other banks accounts on the go, but shifting my savings would be a hassle right now. Will see what they come back with in any event. Thanks for the chat!

PeacefulWaters

If a provider wishes to sell its current accounts to somebody else they can do.

I think Zurich did something similar once. The old Britannia Building Society sold current accounts to co-op long before the two businesses merged.

Standard Life and ING sold savings accounts to Barclays. Bradford and Bingley savers were dumped in Santander.

I'd stop getting your knickers in a twist over it. It merely clarifies what could happen anyway.

tabbycat2k

Well that's put me in my place, hasn't it. Thanks for the feedback.