Halifax interest rate change

alex24

Hi. I signed up for a halifax`fixed websaver account last night. It was a 3 month term and was advertised on their website as 6.78% apr, so i thought great i'll sign up for that. After signing up i checked my online banking and the rate said 5.97% gross. Even used their interest calculator on the website and it still showed 6.78%. I've checked their website today and noticed it's now advertised at 5.97% for the 3 month term. They had obviously dropped the rate and not changed their website. If i had known i wouldn't have signed up. Do i have a case to argue as i've not got what was advertised. As you can imagine i'm fuming. Any advice guys?

Thanks
Alex

MarkyMarkD

I don't know Halifax's opening procedures, but if the account was withdrawn at close of business yesterday, and you opened it overnight, and then failed to get the "old" rate, I don't think you can realistically complain.

I think they would allow you to withdraw your funds without penalty, because they changed the rate without telling you, but I don't think they should be forced to accept your application at the old rate.

emma396

i've just looked at mine, i swear it was 6.95 when i signed up, it's not 6.78

Mikeyorks

The last couple of occasions I've opened 'fixed rate' with them - it's been instant. Prior to that it used to be overnight.

You can but talk to them. As they must have been in process of amending the rates (the highest rate, 6.8% AER, has now dropped to the 6 month period) as you were applying. So no real prospect of notification of the change (but doesn't the rate show in the application ... I seemed to remember it did?) But, as previous post they may be amenable?

But otherwise they will not agree to early closure until it's been open 3 months. But do calculate what you've lost on the 0.81% reduction if they're not very amenable ......it's only circa £1.62 net per £1000. Best not to have 'lost' it - but possibly not worth going to war over?

If you choose a fixed rate Halifax Web Saver ..... etc. If you do need to withdraw your money you can close your account as long as it's been open for three months.

Mikeyorks

emma396 wrote: »

i've just looked at mine, i swear it was 6.95 when i signed up, it's not 6.78

6.95% was the AER. The gross rate (because it's only a quarter of a year)was the lower figure at 6.78% (?)

Compound_2

alex24 wrote: »

Do i have a case to argue as i've not got what was advertised.

I think you do have a case. Try speaking to them first but if they are not helpful follow through the official complaints procedure, as if the case went to the Ombudsman I think Halifax would lose. While the amount may be small, this also means that Halifax would not want to incur the cost of contesting the case.

Dan29

alex24 wrote: »

Hi. I signed up for a halifax`fixed websaver account last night. It was a 3 month term and was advertised on their website as 6.78% apr, so i thought great i'll sign up for that. After signing up i checked my online banking and the rate said 5.97% gross. Even used their interest calculator on the website and it still showed 6.78%. I've checked their website today and noticed it's now advertised at 5.97% for the 3 month term. They had obviously dropped the rate and not changed their website. If i had known i wouldn't have signed up. Do i have a case to argue as i've not got what was advertised. As you can imagine i'm fuming. Any advice guys?

Thanks
Alex

Exactly the same thing happened to me and I eventually got a £100 payment after spending an hour on the phone to them today.

I think it's pretty amateurish that Halifax's website advertised a rate, allowed you to click "Apply now" on that rate and open an account, tied you in to an account at the new lower rate, yet still advertised the higher rate for new applicants until several hours later.

The first person I spoke to said that my only option was to close the account which I accepted, but then the person dealing with the account closure said it would take at least 48 hours and no interest would be payable. Why should we lose at least 2 days' interest because of the lax updating of their website?!

I then spoke to a further person in their "customer care" department who has arranged the extra payment to make up for the lost interest. In my opinion it's just bad luck if the interest rate changes while you're making your application, but the fact that they were still advertising the higher rate after accepting applications and applying the lower rate smacks of incompetence.

Liz_the_Whizz

But if you look at another thread posted here yesterday (I know cos I contributed), the new lower Fixed Websaver rates were clearly displayed on the Halifax website yesterday morning:

http://forums.moneysavingexpert.com/showthread.html?t=676815

So I doubt you would have a case if you applied yesterday evening.

someone

Liz_the_Whizz wrote: »

But if you look at another thread posted here yesterday (I know cos I contributed), the new lower Fixed Websaver rates were clearly displayed on the Halifax website yesterday morning:

http://forums.moneysavingexpert.com/showthread.html?t=676815

So I doubt you would have a case if you applied yesterday evening.

It may have been the case that the paged was cached on the persons computer. Caching is used to speed up users internet by storing a local copy of the website.

LittleVoice

someone wrote: »

It may have been the case that the paged was cached on the persons computer. Caching is used to speed up users internet by storing a local copy of the website.

Yes. So this thread can include a reminder that, where it is important a person has the latest version (as in applying for a fixed rate account), the browser's "refresh" button should be used.

PBA

Remember that there will be a cooling off period, so you're not locked in to the lower rate. Just let them know within the time (probably 14 days) that you don't want the account after all.