Financial Conduct Authority minimum/maximum notice for rate reduction

arsenalboy

Dont know if anybody can confirm or point me to the correct guidance.

I am in dispute with a building society so will not give the name as I will be going to the Financial Ombudsman.

I have a very old Regular saver that paid an annual 0.5% bonus if all conditions were met. I recently discovered that the 0.5% bonus had not been paid with the annual interest and this lost amount is circa £300, so not to be sneezed at.

I queried this with them and they said the bonus had been withdrawn, so I put in a complaint as I had not been notified.

They have written with their final response enclosing a copy of a letter giving 12 months advance notice that was allegedly sent to me 12 months before the bonus stopped.

I have no record of receiving this. However, upon googling I see various references of banks and building society should give at least 14 days notice and no more than 3 months notice of rate or bonus reduction. This has not happened but I would like to see the definitive guidance.

What are peoples view on this ? 

I should add that this was not an introductory bonus but had been running for years.

Thrugelmir

If the BS has evidence of a mass mail out to all customers then it will be accepted that due notice was given. 

arsenalboy

Thrugelmir said:

If the BS has evidence of a mass mail out to all customers then it will be accepted that due notice was given. 

but that is 12 months notice? I find various references to no more than 3 months notice and not less than 14 days notice.

So my question relates to the fact that correct notice has not been given?

masonic

See https://www.fca.org.uk/consumers/changes-bank-account

The FCA expects a reminder to be sent if notice of more than 2 weeks was given. However, it's arguable when the effective date of the new rate (without bonus) was. Is the bonus calculated daily at 0.5% of the closing balance of your account on each day (i.e. 0.5% of the average balance over the year), or is it 0.5% of the balance of your account on the date it is paid? If the former, then it was not 12 months advanced notice that was given.

Thrugelmir

arsenalboy said:

Thrugelmir said:

If the BS has evidence of a mass mail out to all customers then it will be accepted that due notice was given. 

but that is 12 months notice? I find various references to no more than 3 months notice and not less than 14 days notice.

So my question relates to the fact that correct notice has not been given?

Why would there be a restriction of no more than 3 months. No sense in that at all.  Arguing that being given too much notice is just wasting peoples valuable time.