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

oldfella

you should use the consumer regulations which provide a 14 day window for contracts opened at a distance, ie not in person. I reckon an automatic renewal falls within that. I cant believe the BS would fight that.

DeepSporran

badger09 said:

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. 

I’m not sure if it helps but:

August 12th was a Saturday, which is not always a regular banking day.

Quite a few of Cumberland BS branches are not open on a Saturday.

Therefore in practical terms Monday August 14th may have been the first opportunity to physically issue an in-branch instruction at the local branch.

Rollinghome

It's very unlikely that they are not operating within the terms of their T&Cs.  The question would be how many people read those terms from beginning to end, understand them, and remember them all a year later.  Particularly so if an elderly person, possibly living on their own.
The building society should be aware of the actuality and behave accordingly.  Once upon a time, building societies were there for the benefit of their members, not to provide jobs for directors.

dunstonh

oldfella said:

you should use the consumer regulations which provide a 14 day window for contracts opened at a distance, ie not in person. I reckon an automatic renewal falls within that. I cant believe the BS would fight that.

Many areas of financial services are not included in the consumer regulations.  There is a carve-out and replacement rules in place to cover financial services.  In some areas, they are better than the consumer regulations (e.g. 30 days) but in some areas, there are no cancellation rights at all.

There is no requirement for non ISA fixed rate bonds to have a cancellation right in law.   It is voluntary.

bundoran

DeepSporran said:

badger09 said:

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. 

I’m not sure if it helps but:

August 12th was a Saturday, which is not always a regular banking day.

Quite a few of Cumberland BS branches are not open on a Saturday.

Therefore in practical terms Monday August 14th may have been the first opportunity to physically issue an in-branch instruction at the local branch.

Seeing the terms state that they will take instructions "on or before the maturity date" I don't see how you can successfully argue that two days after the maturity date is the "first opportunity" to give instructions. 

oldfella

There is no requirement for non ISA fixed rate bonds to have a cancellation right in law.   It is voluntary.
---------
I still think the BS is being very consumer unfriendly if it relies on a reminder letter, and if the consumer attempts to stop an auto renewal within a very short time of it happening. They may be legally OK, but it doesnt paint the BS in a very good light. Approached in the right way I would expect them to reverse it. They have experienced no significant loss.

Albermarle

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. 

If you are going to fight/appeal to their better ( mutual) nature, you may wish to enquire if there is any proof the letter was ever actually sent ?

CelticStar

Thanks everyone for your advice, it's much appreciated.  I know it is in their T & Cs but as a bank who advocate 'kinder banking' it seems a bit of an unkind way to deal with an 85 year old customer.  I doubt she will complain as she's not the complaining type but I've tweeted them about it and will see what happens. 

gt94sss2

May also be worth reminding Cumberland of their responsibilities under the new Consumer Duty rules

https://www.fca.org.uk/news/news-stories/consumer-duty-higher-standards-financial-services

DeLaSole

CelticStar said:

Thanks everyone for your advice, it's much appreciated.  I know it is in their T & Cs but as a bank who advocate 'kinder banking' it seems a bit of an unkind way to deal with an 85 year old customer.  I doubt she will complain as she's not the complaining type but I've tweeted them about it and will see what happens. 

I think this is a very reasonable view so good luck with it.