Terms and Conditions - Do Barclays have to inform us if they make a change?

moneyfairy101

Our terms and conditions were changed regarding the switch dates as advised by the FCA but Barclays didn’t let us know. This resulted in us missing rates at the start of September 2022. 

What I need to determine is do Barclays have a duty to tell us about these changes in good time or do I have accept that Barclays say this is just bad customer service and they do not have to put this right? Please help! 

dunstonh

Our terms and conditions were changed regarding the switch dates as advised by the FCA but Barclays didn’t let us know. 

Can you clarify what you mean be that?   The FCA rarely get involved in individual matters.  So, what was the FCA doing advising you about something?

What I need to determine is do Barclays have a duty to tell us about these changes in good time or do I have accept that Barclays say this is just bad customer service and they do not have to put this right? Please help! 

Your original contract would have stated the date that your deal would end and what happens next.       I assume that is what you mean by switch date.      Was the date changed from what it was in your contract?

moneyfairy101

Apologies for the confusion, The FCA guidance I am referring to is the general statement they issued banks to ask them to extend switch rate terms from the normal 90days before the end of the term. 

Our contract states we can  switch our fixed rate deal with 90days of the end of the deal. Barclays changed this to 150days on the 1st of September 2022 and did not inform us. So we could have switched our rate on the 3rd if September and secured a reasonable fixed rate. As we didn’t know we could do this we missed this opportunity and have a much higher rate. 

moneyfairy101

Just want to know if we should have been formally notified of this change and if point 7.6.2 of the mortgage handbook would support us with discussions with Barclays? 

dunstonh

Our contract states we can  switch our fixed rate deal with 90days of the end of the deal. Barclays changed this to 150days on the 1st of September 2022 and did not inform us. So we could have switched our rate on the 3rd if September and secured a reasonable fixed rate. As we didn’t know we could do this we missed this opportunity and have a much higher rate. 

In which case, no they did not need to notify you as there was no contractual change.

The point a lender will discuss product transfers before the expiry of the existing deal is not part of your T&Cs.  So, not a contractual obligation.       With mortgages, some things are set by the contract.  Other things are not defined by the contract and can change over the term of the mortgage.  This is one of those things not covered by the contract.

moneyfairy101

Thank you very much. Just pulling together my research to understand. 

Interestingly, they did let us know when this changed again to 180days (4weeks later)
We were also told by Barclays that their policy stated that they did have to let the first account holder know. Could this be because this in a communication policy or something like this rather than our mortgage? 

dunstonh

Interestingly, they did let us know when this changed again to 180days (4weeks later)

You should see big improvements in communications of a whole range of things over the coming years (theoretically).  The FCA consumer duty starts this year and firms are already going live on their interpretations.     Communication is massive part of the FCA consumer duty.

We were also told by Barclays that their policy stated that they did have to let the first account holder know. Could this be because this in a communication policy or something like this rather than our mortgage? 

Policies are being changed left right and centre at the moment.  From the very biggest right down to small IFA and mortgage broker firms.  We are all rewriting policies because of consumer duty.  The key is when they enacted that policy i.e. did it only come into play after the first change or did it exist before?     Also, there was a lot of pressure put on lenders to be proactive that didn't exist at the start.

At the end of the day, if you are dissatisfied with them, then raise it with their complaints team.  Banks are very strange with complaints.  They throw money around as goodwill gestures and for things where there has been no wrongdoing.   But then go an argue and reject on cases where there is clearly wrongdoing.   You can never predict an outcome with the banks.