Interest rates for TheONE Account staying up

subjecttocontract

Looks like someone will need to take them to court.

Could be a good way to generate a lot of money as the newspapers will want all the details from you AND you wouldn't want them to get the info for free.....would you ?

chasancrai

Guys

The fact is they can do it and would get round it by passing it on and then putting it up again.

Why waste your energy

sonofnature

I have just received exactly the same letter today (15th April 08). After digging all my personal correspondence with One account since August 2006, I have found the following information:

On Section 4 of my offer/contract with One account, one of the bullet points states:

“As the interest rate is variable, it can change at any time – and this change may be effective immediately. We will always let you know of any change as soon as we can – and we will always give you advance notice of the amount of interest that you will be charged.”

According to this bullet point, can One Account be legally or formally accused for not passing on the cut?

According to my contract, The One account is now provided by the Royal Bank of Scotland plc.

On the news today, Gordon Brown is quoted saying that he is confident that Lenders will pass on the rate cuts.

In an economy that is fuelled by consumer debt and confidence, is it not socially and morally irresponsible for One Account (provided by The Royal Bank of Scotland plc) not to pass on the rate cuts?

Especially when in the period that I have had my mortgage with One Account since August 2006, they put up the interest rate 5 times with the same type of letter of notice where in the 1st paragraph they state:

“The Bank of England has today announced a 0.25% increase in the base rate. As a result of this change, all One account interest rates will increase by the same amount from midnight on 5th July 2007”

I received the exactly the same type of letter in:

10th May 2007
11th January 2007
9th November 2006
3rd August 2006

On the 6th December 2007, I have received a very similar letter but to confirm a 0.25% decrease.

So in the period when it went up 5 times in 11 months, the rate increase was swiftly passed on to One account customers.

Now that it went down 2 times, in a period of 5 months, One account very quickly changed their mind about passing on the rate cuts after only one cut, even though at least in my case, I have been charged 4 times as much interest since I have started my mortgage.

I have tried my best in this past 2 years to control my finances quite successfully and I am very, very disappointed with One account and I only think that it is fair to shout...

SHAME ON YOU ONE ACCOUNT!
SHAME ON YOU ROYAL BANK OF SCOTLAND!

What can one do, when faced in this David vs. Goliath situation?

Are we the only ones suffering from these shameful practices?

How can we get people together against this?

What about naming and shaming lenders like One account on the Media, is this possible?

I do not know the answer to these questions, but one thing I know. Once someone breaks your trust, it is only the start and you need to be prepared for more situations such as these in the future. So, maybe you need to start preparing yourself for future Early repayment charges and even rate increases when the Bank of England decreases. Everything is now possible…

BACKFRMTHEEDGE

I read in the papers that banks were going to start doing this to offset accounts. The article definitely said that banks are going to target offsets specifically and up their rates.:rolleyes: The reporter didn't say how (or where) they had got their info but low and behold this?

stevo29

Xest, I think they can still get away with not passing on the cut on the basis of those letters as they don't commit to passing on cuts in any of them. However some of the earlier rate change notifications said that they promised to pass on any rate cuts immediately.

Unfortunately for me, I moved house two years ago and I think I must have binned all the Virgin correspondence that related to my old house other than the bank statements so I've lost the May 2001 promise letter (I was with them before and after the move). If I could find the promise in a letter to me I wouldn't have any qualms about taking them to the ombudsman as it was a big factor in deciding to stick with them when I moved.

slimnic

How annoying, for years the One account interest rate has fulctuated with the BOE base rates now its a case of 'up yours' in my opinion this is against the spirit of the agreement.
"Don't get mad, get even"
I'm off to First direct as soon as possible.Rang today and they arranged a call back to set up a new account and mortgage application

wymondham

slimnic wrote: »

How annoying, for years the One account interest rate has fulctuated with the BOE base rates now its a case of 'up yours' in my opinion this is against the spirit of the agreement.
"Don't get mad, get even"
I'm off to First direct as soon as possible.Rang today and they arranged a call back to set up a new account and mortgage application

I think this is probably what they WANT you to do - banks do seem to want to be rid of customers at present...

slimnic

wymondham wrote: »

I think this is probably what they WANT you to do - banks do seem to want to be rid of customers at present...

Think not,believe they just jumping on the bandwagon with the opinion that many customers won't move with the limited and often costly options available to them.
Just my opinion

happywarmgun

In the same position. After 9 years with them this strangley feels like a betrayal....... Will ring them tommorow. Reality for me is that I only have a small mortgage left which at a push I could pay off now. Will probably hold on until I sell the property which I currently have secured against my one account and move to a new provider for my next property. Not sure that 'threatening' them with this will help - I have the strangest feeling this is exactly what they want people like me to do!

Cosmo

I reckon they think they can get away with at least one of these rate change slippages (in this direction of course), probably more if spread out, and that will always be good for them. If you do decide to move then they'll get an immediate boost in the short term from the fees and also reduce their risk/exposure in the market place which is the "big thing" at the moment. Long term they will be loosing customers but no one seems to be thinking that way in the current climate.