Kent Reliance - is this ethical?

1spiral

Generally when a bank/BS makes a change to your detriment that is not covered in their T&C's, they give you the option to leave without penalty.

How would we all feel if we opened a 5 year fix at 5% only for the company after a few months to change the rate to 3%. To me, this type of change is in the same ilk as the OP.

I recently looked at a 90 day notice account (With BLME I think) where the T&Cs said they could change the rate with 60 days notice. To me this was unethical, but stated in their T&Cs so I didn't open the account.

dunstonh

How would we all feel if we opened a 5 year fix at 5% only for the company after a few months to change the rate to 3%. To me, this type of change is in the same ilk as the OP.

No, it's not similar. They are not changing anything from money that's already in the account. They are just preventing further deposits. It's a significant difference. They wouldn't get away with changing the rate of a fixed-term deposit.

However, they can get away with closing the fixed-term deposit for new money because it explicitly states they can do it in their terms and conditions.

As money already deposited isn't affected by this change, there is no requirement to give an option to leave without penalty.

rallycurve

But people have got this particular product only because that ability and have tied money up for a longer term (possibly to a lower rate) because of that.

Where in the terms and conditions says that they can stop allowing deposits at any time anyway?

subjecttocontract

https://forums.moneysavingexpert.com/discussion/comment/82086946#Comment_82086946

Thats exactly the issue.

dunstonh

Where in the terms and conditions says that they can stop allowing deposits at any time anyway?

Posted by DRS1 on another thread:

Their Savings Account Conditions from July 2025 (which may well not apply to the accounts you are talking about has a Condition 16 allowing changes which says

16.1 We can change our Agreement:
• to take account of any changes in law, regulatory requirements, industry guidance or codes of practice;
• to take account of a decision by a court, ombudsman, regulator or similar body;
• to provide for the introduction of new or improved systems, methods of operation, services or facilities;
• to fix any errors, inaccuracies or ambiguities we may discover;
• to make it clearer or more favourable to you;
• to take account of any reorganisation we may conduct within the group of companies we’re a member of, or to transfer our rights and obligations under this Agreement to another company in our group, or
• to respond to a change in the costs we incur in delivering our products and services to our customers.

16.2 We may also change the Agreement for any other reason, unless your Account is for a fixed term.
16.3 We may convert your Account to another account in our range if we have a valid reason (for example, if you are no longer eligible for the Account or we decide to no longer offer that particular type of account), and your Account is not for a fixed period.
16.4 The table below sets out how far in advance we will tell you about any change, how we will contact you about the change and whether you can close your Account if you don’t like the change. If there is a change to the Payment Service Agreement we will always tell you about the change two months in advance by email, a message on your statement, or in any other way that will be sent to you individually but whether you may close your Account (without notice, loss of interest or additional charges) as a result of the change will depend on whether it is to your disadvantage and whether it is a change made in accordance with Condition 16.2.
16.5 We may also add or change the look and functionality of the Online Services without changing the Agreement, but if such a change does mean there is a change to the Agreement we will make that change in accordance with this Condition 16.

flaneurs_lobster

However, they can get away with closing the fixed-term deposit for new money because it explicitly states they can do it in their terms and conditions.

"explicitly"

Really? My eyesight's not the finest but I'm missing that bit.

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/82086982#Comment_82086982

16.1 We can change our Agreement:

<snip>

to provide for the introduction of new or improved systems, methods of operation, services or facilities;

subjecttocontract

Its still an absolutely attrocious decision by Kent Reliance. Some of their customers would have selected the product specifically on the basis that they could add money later. Customers expect to be treated fairly and this just isn't it. I do hope someone affected takes their complaint the full distance. These actions will hardly improve Kent Reliance reputation. This could have been handled so much better couldn't it ?

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/82087009#Comment_82087009

I know it's the point but that clause would allow them to do pretty much anything (legal) if they were to change their brand of photocopy paper.

rallycurve

Is introducing a new service a valid reason to change a fundamental facility of the account? if so, where is the line drawn? Could they also reduce the interest rate with that excuse? Add a monthly fee?

I've already escalated this to the FOS and am waiting for their decision as I believe they should not be allowed to do whatever they want