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Nationwide's 'Fairer Share' £100 payment for eligible members

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  • Section62
    Section62 Posts: 9,812 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    TheBanker said:
    2010 said:
    km1500 said:
    “While we understand that some members who didn’t meet the criteria this time may be disappointed, we hope to be able to make the payment annually, and that even more members become eligible in future.”

    They "hope to"!
    This should be an annual event, some of the profits should be shared with members as there are no shareholders to pay dividends to.

    The flaw with this plan is that if more members are eligible (and I think there will be more, because some people will manipulate their account activity to meet the current criteria), then either everyone receives a smaller payment or they have to have more profit which will prompt more complaints about poor savings rates.

    If they change the criteria so some people who qualify under this year's rules don't qualify next year, that will generate complaints.

    And if they change the criteria to include more members by addressing some of the unfairness highlighted this time, everyone will receive a smaller share.

    Whatever they do now, I don't think they can win. However they distribute the profits next time, there will be a further group of unhappy customers. 
    When in a hole, stop digging.

    They are creating an expectation of another £100 payout next year.  Which, without bankrupting themselves, would mean keeping the eligibility criteria restrictive enough to limit the recipients to a small proportion of the total membership, or as you say to reduce the amount of money each member gets.

    'Free flights to the USA'?
  • boingy
    boingy Posts: 1,912 Forumite
    1,000 Posts Second Anniversary Name Dropper
    TheBanker said:

    Whatever they do now, I don't think they can win. However they distribute the profits next time, there will be a further group of unhappy customers. 
    If nothing else I would hope they have learned that they need to reward the majority of members rather than the minority, or not reward anyone at all. But it is only a hope rather than an expectation.
  • TheBanker
    TheBanker Posts: 2,224 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    boingy said:
    TheBanker said:

    Whatever they do now, I don't think they can win. However they distribute the profits next time, there will be a further group of unhappy customers. 
    If nothing else I would hope they have learned that they need to reward the majority of members rather than the minority, or not reward anyone at all. But it is only a hope rather than an expectation.
    I agree - but if they say next year they're giving everyone £20 because more members are eligible, they'll get complaints from people who previously got £100 and think they've missed out on £80.

    If it was me, I would say the current scheme was a one off but they are creating a equitable scheme for next year. This would involve members earning 'points' based on their average monthly balances (for savings and mortgages) and their transactions (for current accounts). At the end of the year, the available profit is divided by the total number of points issued and paid to members. No different to how the Co-op food store dividend schemes work. 
  • Section62
    Section62 Posts: 9,812 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    2010 said:
    km1500 said:
    “While we understand that some members who didn’t meet the criteria this time may be disappointed, we hope to be able to make the payment annually, and that even more members become eligible in future.”

    They "hope to"!
    This should be an annual event, some of the profits should be shared with members as there are no shareholders to pay dividends to.

    All profits should be shared with members (other than keeping any necessary reserves).  This is the model of how a mutual building society is supposed to operate.

    It shouldn't be an annual event, because if they offered better value products then surplus profits of this kind shouldn't be accrued.

  • MACKEM99
    MACKEM99 Posts: 1,061 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    edited 10 June 2023 at 10:52AM
    jim1999 said:
    Turns out that Nationwide are trying to close out all of the fairer share complaints by doing a copy-pasted response en-masse.

    But, if you contact them to say you're unhappy with that response, they will actually allocate someone to investigate.

    They've tried to prevent people from doing so by not providing any contact details on the letter itself.

    Not sure it's the best strategy if they want to avoid lots of people going to the FOS, but I suppose that's their prerogative.
    Why don't all those that are not happy to flood the CEO with emails.  I know he will not deal with them but will maybe get a flavour of the feeling of members.
  • MACKEM99
    MACKEM99 Posts: 1,061 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    Is it just a coincidence that they announced the £100 around the same time as bringing out the 2 year member bond at a decent rate?

    M99
  • 2010
    2010 Posts: 5,467 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    I would say this is just a one off payment because of excess profits and never likely to be repeated.

    It comes as Nationwide reported a 40% jump in annual pre-tax profits to £2.2bn, topping its previous record high of £1.6bn a year earlier.
    19 May 2023
  • ForumUser7
    ForumUser7 Posts: 2,460 Forumite
    1,000 Posts Second Anniversary Photogenic Name Dropper
    MACKEM99 said:
    jim1999 said:
    Turns out that Nationwide are trying to close out all of the fairer share complaints by doing a copy-pasted response en-masse.

    But, if you contact them to say you're unhappy with that response, they will actually allocate someone to investigate.

    They've tried to prevent people from doing so by not providing any contact details on the letter itself.

    Not sure it's the best strategy if they want to avoid lots of people going to the FOS, but I suppose that's their prerogative.
    Why don't all those that are not happy to flood the CEO with emails.  I know he will not deal with them but will maybe get a flavour of the feeling of members.
    *she - It’s Debbie Crosbie
    If you want me to definitely see your reply, please tag me @forumuser7 Thank you.

    N.B. (Amended from Forum Rules): You must investigate, and check several times, before you make any decisions or take any action based on any information you glean from any of my content, as nothing I post is advice, rather it is personal opinion and is solely for discussion purposes. I research before my posts, and I never intend to share anything that is misleading, misinforming, or out of date, but don't rely on everything you read. Some of the information changes quickly, is my own opinion or may be incorrect. Verify anything you read before acting on it to protect yourself because you are responsible for any action you consequently make... DYOR, YMMV etc.
  • MACKEM99
    MACKEM99 Posts: 1,061 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    edited 10 June 2023 at 11:32AM
    I put she then he perhaps in these woke times I should have said them they.
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