Northern Rock bonus

FridaysVictim

Greetings comrades .
I just had a shock regarding my Northern Rock Online tracker .
There is supposed to be a 1.24% bonus paid for the first year so I asked them for the date when the year runs out .
They've come back and said that as I had an account with them previously , which I closed 25.10.05 , the new account opened around 10/09/07 will not be paying a bonus . They claim they wrote to me specifying this which , of course , I've never received .
So they're only paying 5.01% .
And I find this out after I've moved a huge wodge there as they are now a safe bank .
Bastidos :-((((((((

So please check you are due the bonus if you previously had an account with them .




Tardy Edit for clarity .
They will only say you are not due the bonus IF you have previously received a bonus . The above implies that you won't get the bonus if you have merely had an account previously . Sorry if there is any confusion .

oldfella

if you closed the previous account and opened a new one, I suggest you write to them to complain - tell them they are in breach of their T&Cs unless they can show you the clause which limits the bonus to only one account.

Mike

FridaysVictim

Already done it .

They say that as their T&C's state that "Only one introductory bonus is payable per customer." I can't have the bonus as I "was" a customer in 2005 and as I have come back for a new bonus bearing account the legal term "customer" applies to me .

I have argued the case that the terms should state "Individual" as when I opened the new account in 2007 I was actually an "Ex-customer" as I had decided to no longer be a "customer" when I closed my account in 2005 .

They don't state the definition of "customer" yet say that as I used them before , yet closed the account , I am still a "customer" .

Good example of "Sharp practice" perhaps .

C&G would allow an individual to open up a new bonus account after 6 months of becoming an Ex-customer .

Looks like the FSA and small claims court .
But I'll keep you posted for interest (Oooh , a pun) .

FridaysVictim

Hi,

Does anyone know the legal definition of the word :

"Customer"

According to the Merriam-Webster's Dictionary of Law a "Customer" is :

Main Entry: cus·to·mer
Function: noun
1 : a person or business that purchases a commodity or service
2 a : a person or entity having an account with a bank or on whose behalf the bank has agreed to collect items b : a person or entity for whom an issuer issues a letter of credit

I believe that is from the American legal system .

What exactly is a "customer" when used in a United Kingdom banking contract ?

Any clues ?

Thanks in advance .

Biggles

You are a customer.

You received a bonus.

You don't get another one.

If it was important, I'm surprised you didn't query this before opening the account.

FridaysVictim

How can I be a customer if I don't have an account and they are not supplying services at the time I open the account ?

If that is the "legal" description , then any person who had an account with any ex-building society over the last 20 years or so , yet didn't have an account at the time they converted , are now able to claim the entitlement as they were customers and by definition members .

I'm not trying to be arguementative just trying to get a definition .

MarkyMarkD

Other companies with "only one bonus per customer" rules specify how long you have to have closed your previous account before you become an "ex-customer". A&L current accounts use this approach, for example.

I agree with the OP that Northern Rock's "you are a customer forever" definition defies commonsense and I don't believe that the FOS would uphold it. But equally well, if they had actually written to you up front, stating that you weren't eligible for the bonus, I would consider their position acceptable.

FridaysVictim

I would accept their position more than acceptable .
I am a fair person .
I readily admit when I screw up (do it often :-) ) .
They have only done me out of £198 so far in 6 months .
But I didn't receive their alleged letter .
The letter was written after they had my money .
They folded 2 days later so the possiblity that the letter was posted is remote .
I didn't consider myself a customer at the time of opening the account as I wasn't a customer as I had had no dealings with them for nearly 2 years (which is the definition I am trying to find) .


Edit: to add bold .

FridaysVictim

Now if I HAD an account with them which was coming to the end of it's bonus period .

And I had opened a new account to take advantage of the new bonus .

THEN I would have felt the terms applied to me and wouldn't be writing this .

MarkyMarkD

Northern Rock haven't "folded". They have continued in business the same as ever, just under different share ownership.

I doubt that has anything to do with you not receiving the letter.

There isn't much difference between having an account which is just finishing its bonus period, and having one which you closed a few months earlier. But if their Ts & Cs don't prohibit the second situation, they can't claim that it is valid to exclude you from the bonus.

FridaysVictim

Their T&C's don't mention the words :
"Introductory" ,
"Bonus"
"1.06"(which was the then bonus)
or a definition of the word "customer" .
The only mention of a bonus is when you look at the account advert where , today , it says 6.25% interest and click the "Find out more" link and then the "Show notes" link .
That is the only place you will find it mentioned (as far as I've found anyway) .

When I say "folded" I know they didn't close business , but it's only for the grace of the Tax payer that they didn't .
Any company would delay a cash outflow of nearly £30k at a time when they are asking the Bank of England for a loan (which is what caused the run) .
If I had received their alleged letter of 12.09.07 do you think I would have kept my money there at what was I think 5.25% , when I moved it there from a higher paying account than that .
Would you ?