Charter Savings - Reducing Interest with Immediate effect

charlieboycat

Lulu58 wrote: »

No, my complaint is about:
- my Key Facts document does not state that my account is tracking anything, be it BoE, Libor etc. which is their argument for reducing the rate
- the points in the T&C's raised by charlieboycat above
- the lack of notice given for a 95 day account when I cannot withdraw my funds
- I spoke with the bank before I opened the account and they assured me they gave notice of reducing interest rates in line with the notice on customer accounts

I have had several notice accounts over the years and I can't think of one bank that has not given customers the equivalent notice period of their account before dropping the rates.

If your account is not a "tracker" then T&C 20.2 applies - "Subject to paragraph 20.4 [which deals with 'tracker' accounts] , we can (but have no obligation to) proportionately change our interest rates ... to reflect a change in the Bank of England Base Rate". So the reduction is in accordance with their T&C despite your account not being a tracker. As explained in my earlier post, in giving you no advance notice they have acted strictly in accordance with T&C 20.5. What notice other banks may give in similar circumstances is of course irrelevant

So your only ground of complaint is that a customer adviser assured you that they gave notice of reducing interest rates in line with the notice on customer accounts. Presumably you read the T&Cs before opening your account (I imagine you would have had to tick a box to say that you had) so that you were aware that this advice was contradictory to the T&Cs. Having nevertheless decided to open the account based on that advice I hope you made a comprehensive contemporaneous file note encompassing the date and time of the call and the name of the adviser you spoke to. Good luck with your complaint.

Lulu58

I have been advised by two different members of staff today that the interest rate has dropped because my account tracks the BoE rate. According to the documentation I have, my account does not track anything. So my complaint is about not being given correct info either by staff today, or in their documentation if they are adamant that I have some kind of tracker account.

I didn't read the 17 page T&Cs document when I opened the account, and I have to accept full responsibility for that. Having read through it today, the document is incredibly long and confusing.

I do have a note of who I spoke with, date etc.

Yes, my comment about other banks is irrelevant in terms of my complaint , but I was/am curious to know if other people have the same experience with other banks.

CJL

I queried the reduction of interest rate on my 120 day account without notice. I was told that I could close the account within 30 days of the notification. I asked how I do that without giving notice. They must have meant without notice because I can close the account AT ANY time, not just within 30 days, with 120 days notice. They then changed their mind and said that their terms say that the 30 days doesn't apply because it is not a material change in interest rate. That may well be true, but why did they tell me that I could? Their customer services appear to be completely confused as to what is going on.

The handling of the interest rate reduction by Charter Savings seems to be in complete contrast to the way this is being handled by Paragon, Shawbrook, Aldermore and Cambridge & Counties, all of whom have done it properly (either allowing closure without notice or applying the reduction after the notice period). Having decided to do that, they seem to be confused as to what the situation is.

I have reluctantly given the full 120 day notice as I want nothing to do with these people. It is a pity as most of the other challenger banks seem to pride themselves on good customer service.