Informing customers of rate changes

pengers

Lloyds TSB have today sent me notification that the rate payable on their ISAs fell on June 17th. I know the fall is only 0.1% but is it acceptable to inform their customers well after the event? Perhaps they don't have to inform us at all. A&L at least gave my son 2 months notice when they changed child rates.

ReportInvestor

Hi pengers

On such a small change relative to the bank base rate they are under no obligation under the Banking Code to notify you at all, never mind in advance.

Some building societies spend 30p a go notifying every account holder of every change - even if it's in line with the base rate. More fool them.

If the reduction in any one year is more than 0.5% relative to the base rate then you should be notified [clearly the A&L hatchet job on its children's account came into this category.]

Even the Consumers' Association recognises that compulsory notification of all changes would result in lower interest rates for customers.