Nationwide Smart 2 Save (withdrawal)

W1lly

Firstly please forgive me if this is in the wrong category (go easy on this noob)

My daughter has the above account setup for her as a gift when she was one years old. The couple that opened the account (god parents) remained as the account named with my daughter as the "behave of" Some further monies were deposited on birthdays and the account laid dormant for a few years until my daughter turned 16.
On visiting the branch with a view to transfer the monies into an account of her own, much to her surprise (and ours) all but £3 had been transferred into the trustees account.

I have made a formal complaint, as the terms and conditions clearly state...

Smart
This account is designed for children to manage their own savings and for parents, friends and family to save for a child’s future.
If the account is opened by an adult, the adult will be acting on behalf of the child (as a ‘bare trustee’). Although the account is in the name of the
adult, the money in the account is held for and belongs to the child. As a ‘bare trustee’, the adult will have duties and obligations to the child (for
example, the adult will need to act in the best interests of the child).

The complaints handler said we have no grounds as the account allows the trustees to withdraw funds and they had no way of know where those funds were going when they were transferred. I agreed with this premise, except they now know that the withdrawal was not "in the best interest of the child" and given the account it has been transferred to is another Nationwide account, they should be writing to this customer and explaining that they have just stolen or at least committed fraud by transferring these funds into their own account, which is clearly not in the best interest of our daughter.

Any advice on this matter would be greatly received:beer:

IanManc

W1lly wrote: »

The complaints handler said we have no grounds as the account allows the trustees to withdraw funds and they had no way of know where those funds were going when they were transferred. I agreed with this premise, except they now know that the withdrawal was not "in the best interest of the child" and given the account it has been transferred to is another Nationwide account, they should be writing to this customer and explaining that they have just stolen or at least committed fraud by transferring these funds into their own account, which is clearly not in the best interest of our daughter.

The trustees had the right to move money out of the account. Nationwide had no obligation, or indeed right, to demand a reason for them doing so under the terms of the account.

Nationwide don't "know" that the transfer of money was not in the best interests of they child - they have you alleging that this is the case.

Your issue is with the trustees, and not Nationwide.

Nationwide has operated the account in accordance with the account rules, whereas the trustees appear to have breached their trust.

Nationwide is the provider of your evidence against the trustees. Nationwide isn't the guilty party, and they can't resolve the situation.

You need to complain to the trustees and ask for the money back.

W1lly

Thank you for your response, one cant help but wonder why a legal term such as 'Bare Trustee' is used in the terms if they then proclaim to have no responsibility for the safe guarding of the child's monies.
Its rather akin to friend taking your ID, withdrawing the money from your account and the bank simply stating... how are we supposed to know it wasn't you!

True they weren't to know it wasn't you, however once they find out it wasn't, they address the fraud/theft.
I shall make a complaint to the financial ombudsman and see what transpires.

xylophone

Have you approached the Trustees for an explanation?

cloud_dog

W1lly wrote: »

Thank you for your response, one cant help but wonder why a legal term such as 'Bare Trustee' is used in the terms if they then proclaim to have no responsibility for the safe guarding of the child's monies.

I think you are assigning responsibility to the wrong entity, I'm afraid. It is the trustees who are opening the account and they are legally responsible for their actions. I appreciate that doesn't help you in this situation.

As others have said you need to speak with the trustees, they may have simply moved the money to a better paying child account (maybe unlikely as they would have needed certificated evidence to open a new account but, you don't know), perhaps they have withdrawn the money and have used it for the benefit of your child, i.e. purchased something for them.

In the worst case scenario, they have used the money for themselves, you (on your child's behalf) could issue legal proceedings against them (although that is quite a step to take).

IanManc

W1lly wrote: »

Thank you for your response, one cant help but wonder why a legal term such as 'Bare Trustee' is used in the terms if they then proclaim to have no responsibility for the safe guarding of the child's monies.
Its rather akin to friend taking your ID, withdrawing the money from your account and the bank simply stating... how are we supposed to know it wasn't you!

True they weren't to know it wasn't you, however once they find out it wasn't, they address the fraud/theft.
I shall make a complaint to the financial ombudsman and see what transpires.

No, it isn't "akin" to your scenario.

Don't bother complaining to the Ombudsman because Nationwide have done nothing wrong. Your complaint will go nowhere because you will be complaining about the wrong people.

They provide an account which bare trustees can use. They are not responsible if trustees breach their trust, steal or commit fraud. It is the trustees who you should be questioning.

W1lly

Thank you all for your responses, I guess we have to just chalk this up to experience and remember we will all have to account for our actions as some point.

We lost touch with these individuals many years ago....can't think why!

Thanks again for your input, we appreciate it.