Cumberland BS reinvested bond without warning in another fixed bond - any recourse?

CelticStar

My mother-in-law is elderly but still very with it and is very good with her paperwork.  She had some money invested in a fixed bond in the Cumberland fixed until 12th August.  She thought that if she went up on 12th August she could transfer it into an easy access account prior to fixing it in an ISA at a much better rate.  Unfortunately, when she went up today she was told she would have been sent a letter telling her to reinvest in the fourteen days beforehand or it would be moved into another fixed bond.  She is adamant she never received a letter and she keeps all her financial paperwork together and I've had a look through and there is nothing there.  Is it worth kicking up a fuss or should we just accept it as one of those things and chalk it up to experience?

Money_Grabber13579

It’s worth checking the T&C’s because I know some banks/building societies that do this give a 14 day cooling off period after they have reinvested it, to enable you to take it out again. Coventry is the one I’m specifically thinking of but there may be others.

I’ve had a quick look on their website and don’t see anything particularly promising though…

oldfella

I think you will find there is a default 14 day window to change your mind. They can't use a letter you may have received as permission to negate this.

Rollinghome

If you have the energy then kick up a fuss. Lodge a complaint if necessary. I tend to object to the the practice of requiring customers to opt out rather than opt in. More the sort of tactic expected of Amazon than a decent building society. Even more so if the product sold is not top rate. I would hope there will be a cooling off period.
It may be that she did receive the letter but that isn't the point. None of us think as clearly as we become elderly, and a responsible building society should be taking that into account.

dunstonh

T&C for their FTDs:

wmb194

CelticStar said:

My mother-in-law is elderly but still very with it and is very good with her paperwork.  She had some money invested in a fixed bond in the Cumberland fixed until 12th August.  She thought that if she went up on 12th August she could transfer it into an easy access account prior to fixing it in an ISA at a much better rate.  Unfortunately, when she went up today she was told she would have been sent a letter telling her to reinvest in the fourteen days beforehand or it would be moved into another fixed bond.  She is adamant she never received a letter and she keeps all her financial paperwork together and I've had a look through and there is nothing there.  Is it worth kicking up a fuss or should we just accept it as one of those things and chalk it up to experience?

You need to dig into the specific account or general T&Cs but going by the summary box that's on its website today it says that instructions can be given, "...on or before the maturity of your existing account."

If your MIL attended a branch on the day it matured to have the money transferred elsewhere you'd think that should count as, "giving instructions" in the timeframe required. I'd make that argument, anyway.

https://www.cumberland.co.uk/savings/fixed/fixed-rate

DeLaSole

Hi CelticStar,

Whichever new product your MIL has been moved over to will have its own t&cs. If they include a 'cooling-off' window then she could try to use that to get out of the new fix.

Best wishes.

badger09

wmb194 said:

CelticStar said:

My mother-in-law is elderly but still very with it and is very good with her paperwork.  She had some money invested in a fixed bond in the Cumberland fixed until 12th August.  She thought that if she went up on 12th August she could transfer it into an easy access account prior to fixing it in an ISA at a much better rate.  Unfortunately, when she went up today she was told she would have been sent a letter telling her to reinvest in the fourteen days beforehand or it would be moved into another fixed bond.  She is adamant she never received a letter and she keeps all her financial paperwork together and I've had a look through and there is nothing there.  Is it worth kicking up a fuss or should we just accept it as one of those things and chalk it up to experience?

You need to dig into the specific account or general T&Cs but going by the summary box that's on its website today it says that instructions can be given, "...on or before the maturity of your existing account."

If your MIL attended a branch on the day it matured to have the money transferred elsewhere you'd think that should count as, "giving instructions" in the timeframe required. I'd make that argument, anyway.

https://www.cumberland.co.uk/savings/fixed/fixed-rate

BIB Agreed. 

However, account matured 12th, but OP posted on 14th saying MIL attended branch ‘today’ so she didn’t give instructions on time. 

DeLaSole

The generic savings t&cs include a 14-day 'right to cancel' section which I would explore. But you will have to be quick.

https://www.cumberland.co.uk/neon/download/file/PDFs/Cumberland-Account-Conditions.pdf

Money_Grabber13579

DeLaSole said:

The generic savings t&cs include a 14-day 'right to cancel' section which I would explore. But you will have to be quick.

https://www.cumberland.co.uk/neon/download/file/PDFs/Cumberland-Account-Conditions.pdf

But that 14 day cancellation period doesn’t apply to non-ISA fixed rate accounts, which is why I wasn’t particularly hopeful. Assuming it hasn’t been transferred into an ISA bond of course.

DeLaSole

Money_Grabber13579 said:

DeLaSole said:

The generic savings t&cs include a 14-day 'right to cancel' section which I would explore. But you will have to be quick.

https://www.cumberland.co.uk/neon/download/file/PDFs/Cumberland-Account-Conditions.pdf

But that 14 day cancellation period doesn’t apply to non-ISA fixed rate accounts, which is why I wasn’t particularly hopeful. Assuming it hasn’t been transferred into an ISA bond of course.

Quite right, MG, just in case it was ISA related.

Unfortunately with those kind of original t&cs, you have to make a note to be pro-active in the run up to the maturity as if a letter doesn't arrive (or the like) to remind you, this is the outcome etc.

Best wishes.