Virgin money merge with yorkshire bank

TREVORCOLMAN

in July VM emailed me to say:

If you have deposits (e.g. a savings or current account) with Virgin Money, then the following information is important to you.

The FSCS protects individuals who have savings held in a UK bank account up to £85,000 per individual. This means that you can have up to £85,000 protected in your account(s) with Virgin Money and up to another £85,000 protected in accounts with Clydesdale.

When the two businesses come together as one bank, you’ll only get protection on your total combined savings with Virgin Money and Clydesdale, up to £85,000 (or £170,000 for joint accounts).

Now Yorkshire Bank are saying it is 85k with each.

Who is correct?

eskbanker

Where (and perhaps when) do Yorkshire say it's £85K with each?

https://secure.ybonline.co.uk/personal/savings/compensation-scheme/ states £85K across the group:

Your eligible deposits with Clydesdale Bank PLC are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK’s deposit guarantee scheme.

This limit is applied to the total of any deposits you have with the following: Clydesdale Bank, Yorkshire Bank, B and Virgin Money. Any total deposits you hold above the limit between these brands are unlikely to be covered.

https://uk.virginmoney.com/virginmerging/savings/ (FAQ 26) also confirms:

Now that the two businesses have come together as one bank, you only get protection on your total combined savings in Virgin Money, Clydesdale Bank, Yorkshire Bank and B branded accounts, up to £85,000 (or £170,000 for joint accounts)

System

The transfer was approved by The Court of Session (aka The Court of Sessions on Sky News / Scottish Appeal Court on BBC News) on the 26th September and took effect from the 21st October.

It was Virgin Money PLC to Clydesdale Bank PLC
Yorkshire Bank is just a brand name of Clydesdale Bank PLC.

TREVORCOLMAN

eskbanker wrote: »

Where (and perhaps when) do Yorkshire say it's £85K with each?

https://secure.ybonline.co.uk/personal/savings/compensation-scheme/ states £85K across the group:

https://uk.virginmoney.com/virginmerging/savings/ (FAQ 26) also confirms:

Customer Services told me over phone it was 2 x 85K. I therefore asked for it in writing which they said they would do. Then they contacted me and said they had got it wrong it is only 1 x 85k.

:mad:

eskbanker

TREVORCOLMAN wrote: »

Customer Services told me over phone it was 2 x 85K. I therefore asked for it in writing which they said they would do. Then they contacted me and said they had got it wrong it is only 1 x 85k.

Without wishing to denigrate bank call centre employees unduly, it's usually best to rely on definitive information published on their websites and elsewhere - it really didn't take long to find the info posted above.

Is this all hypothetical or do you really have more than £85K in cash deposits within the new bank (which is unlikely to be a good idea even without any FSCS considerations)?

sal_III

I think the wording is to blame, but essentially it means that:

you can currently have up to £85,000 protected in your account(s) with Virgin Money and up to another £85,000 protected in accounts with Clydesdale.

Which will no longer be the case when the two businesses come together as one bank. Which how it normally works for bank groups.

For that reason you are (I was) offered to withdraw any savings without penalty and retain interests incurred thus far.

edit: Regarding the call center reply, it really depends on when the merger takes full effect, they will always give you the current state, even if it's about to change next week. For example I was opening a Nationwide FlexPlus account and it changes dramatically next month. The person on the phone was careful to state only the current terms and made a note that the terms are changing next month, but since i'm opening the account now, i must agree to the current terms.

eskbanker

sal_III wrote: »

Which will no longer be the case when the two businesses come together as one bank.

[...]

edit: Regarding the call center reply, it really depends on when the merger takes full effect, they will always give you the current state, even if it's about to change next week.

As per the above posts, the merger has now happened, as from last Monday!

TREVORCOLMAN

Continuing Saga.

I applied to another provider to move one of my ISAs as I was informed by YB Exec Office that I could move one of my ISAs without penalty.

I therefore asked the new provider to move the whole amount of one of the ISAs.

The new provider has written to me today informing me that they have been unable to move the ISA as YB has told them I have insufficient funds.

So I called YB YET AGAIN to be told:

"Oh you cannot move the whole of the ISA you can only move the amount over 85k"

!!!!!!

Who on earth moves part of an ISA?

So how on earth do I that as the amount will change every day as time goes along.


Also what happens when the interest is added each year it will again take me over the 85?

Idiots.


:mad:

TREVORCOLMAN

So I contacted YB and they cant tell me how much I am over the 85k as one of the ISAs is with VM and I should ask them how much is there. I thought they took over VM on 21 Oct?

So how can YB stop my ISA going to new provider, saying I can only move any amount over 85k, if they dont know how much I have in total?

After all it is under their licence?

System

TREVORCOLMAN wrote: »

So I contacted YB and they cant tell me how much I am over the 85k as one of the ISAs is with VM and I should ask them how much is there. I thought they took over VM on 21 Oct?

So how can YB stop my ISA going to new provider, saying I can only move any amount over 85k, if they dont know how much I have in total?

After all it is under their licence?

Yorkshire Bank have no licence - CYBGs brands (now including Virgin Money) are all now Clydesdale Bank plc. However, I doubt they are fully integrated technologically as they are have only been linked legally for a short period of time.

abz88

TREVORCOLMAN wrote: »

So I contacted YB and they cant tell me how much I am over the 85k as one of the ISAs is with VM and I should ask them how much is there. I thought they took over VM on 21 Oct?

So how can YB stop my ISA going to new provider, saying I can only move any amount over 85k, if they dont know how much I have in total?

After all it is under their licence?

I get that its frustrating that they cannot you tell you how much over the 85k you are, but do you not know this yourself? Either through online access to them, or failing that, go into your local branch to get a statement?