Interest rates for TheONE Account staying up

The_Chemist_2

Like many others on here I'm very disappointed with VoA/RBS and on getting my no reduction letter today I immediately rang and complained bitterly pointing out that via the Bank of England all the UK banks have benefited from getting taxpayers' cash at cheap rates to get them all out the hole they so stupidly and greedily dug themselves into.

I still very much rate VoA but it makes my blood boil when they so blatantly shaft us in this way. I'll be checking my capacious files for that rate adjustment promise letter tomorrow.

In my dreams I imagine all the customers of a big bank rocking up to the counters one day and threatening to withdraw all current account and savings bank cash. They might then REALLY understand that they need us just as much as we need them.

notYourFriend

I think if enough One Account customers complain -- in an organised way -- Virgin may have to rethink their strategy on this one. I'm assuming every one of their One Account clients is feeling pretty aggrieved right now, so we just need to get the message out that it IS worth contacting them and letting them know how you feel.

What's most disturbing about this affair is that, as far as I can tell, Virgin can set whatever interest rate they like at any time, which is far from the spirit of the contract I entered into with them. Thus far, they've been great in terms of efficient and fair service, so I think it's worth stressing the point that this rather miserly decision on their part is destroying the far more valuable asset of trust that they've built up with me over the last five years.

Right, off to the filing cabinet . . .

Doh

well i have just sent them a message expressing my disapointment and advised them i am considering moving my account to another provider.

i suggest everyone does the same!

happywarmgun

Just got round to ringing them - the bloke I spoke to seemed a reasonable enough chap and genuinely sympathetic to everything I was saying (though powerless to do owt about it!).

Their position seems to be that there has been a fundamental change in banking where the BOE base rate is no longer the driver of the cost of money for intra bank loans and so will no longer be the driver for mortgage rates.

Two unconnected thoughts on this.....

1/ How terrifying for the government! That makes them even more impotent to do anything about the current credit situation.
2/ I'll be reminding them of this position the next time the BOE rates go up and they pass it on immediatley. It has to work both ways for their position to have credibility. I think they're setting a massive trap for themselves in spinning this the way they are....

I am not as dilligent in keeping records as others. If anyone can find any of the marketing material that I remember from the late 90s stating that they would always pass on changes to the base rate please post it to this forum. Without that, all I can do is complain and accept the situation. With anything in writing that turns out to be a false promise I could take legal action.

In the meantime I suggest everybody who hasn't done so already makes a point of ringing and formally complaining.

chasancrai

Guys - look at your T&Cs.

1999 was a long time ago, do you really think it makes any difference. The T&Cs are clear and from memory they have passed every other cut on

Fred1_2

I am disappointed, but resigned to the fact that they can legally do this. That's not going to stop me complaining in writing and pointing out that I will no longer be recommending them to friends and family as I have been doing for about 6 years now. I will now actvely be looking for another mortgage, but in the current circumstances, I don't know if I'm going to be able to find one that doesn't cost an arm and a leg.

I've decided not to buy more property while the market is like it is, so can now concentrate on saving cash and reducing my debt.

I have seen quite a few adverts for the One Account recently, I wonder how this failure to pass on the rate cut can be publicised - it doesn't help people "shrink their mortgage" as the adverts state.

Simon22

I'm equally miffed. Recieved my letter this morning, every rate increase has been passed on to me within days, we already pay over the odds rate wise on this mortgage, now they don't honour their own promise to follow the BOE rate, or only follow it when it suits them,, which essentially makes a mockery of the account.

I've been a long term Branson fan, I believe in the way he operates in general, I holiday at his to say the least exclusive resorts, use his bank account and subscribe to various Virgin led services, this I'm afraid leaves a very sour taste in the mouth, to my mind, honesty, integrity is everything, and this has delivered a crushing blow to his legitimacy as businessman I want to give my money to.

I can understand banks who don't have to , not reducing the rates, but when your account specifically follows the BOE for it's rates and ups them every time the rate increases, it's a pretty poor show when they pick and choose to drop it.

They will have done untold and irreversible damage to this product now, it's lost all integrity for me, I'm am now looking elsewhere, it's not a cheap product even in the current market.

I hope Martin, says something about this , Virgin could do with some bad publicity on this to make them realise how annoyed their customer base is.

Cosmo

It is Virgin in name only, Branson sold up/out years ago. I don't think this development would be as he intended but I'm sure he has no control over it now.

It was certainly sold to me on their fairness policy of staying with the BoE rate although it was not specifically a tracker mortgage that would guarantee it. It is interesting to have a written letter with the magic promise. I'll certainly be pursuing it with The One Account (as it is now) and then the Financial Ombudsman, and then seek legal advice.

It isn't just a small group of people who've had some spurious bank charges added and have a moan to Watchdog - it is everyone with a One Account and it must be making all their customers mad. But I guess that isn't so many people in the eyes of RBS who now run the show.

I wonder if anyone has an account in credit - did they drop the rate for savings?

wymondham

Cosmo wrote: »

I wonder if anyone has an account in credit - did they drop the rate for savings?

I have an account in credit, and the rate also stayed the same, so personally speaking it's good news for me, but it is a worrying development.

jackarmy

I have used the Voa both as a mortgage since 2002 and as a credit only account for the last 14 months.

Up until yesterday the interest was showing 1%, however today the rate has gone back up to 1.25%.

There have been numerous postings on this site about the 'Marmite' account, and I am probably as guilty as many in not using it to its full advantage, stoozing etc.

I chose it back in 2002 for its flexibility, an efficient UK based call centre, and the Virgin Brand. I was well aware that it was not the cheapest product however with a 25 year committment cost although important was not the number one consideration.

I took out an ING fixed at 4.95% for two years with a view to return to the One Account next Feb and I still intend to do so. This was when rates were predicted to rise considerably. Interestingly ING until recently claimed that their SVR would never go above 0.9% above base. Today it stands at 6.09

I have to say that I was under the impression that the One Account rate 'tracked' base rates.

The fact is all companies are out to produce a return for their shareholders and will do anything to achieve this aim.

Martin is my HERO, however I am aware that for every pound I shave off my monthly expenditure my supplier will recoup some other way.
If I turn all my lights out the unit price goes up, if overdraft charges are unlawful on goes a monthly fee, if someone in the EC tells mobile companies to reduce European call charges suddenly 0845/0870 numbers become non-inclusive.

If mortgage rates decrease arrangement fees go up.

At the end of the day if you want to own your home it comes at a price. Always has, always will, however when the last pound is paid off and you and not the financial institution owns the bricks and mortar think of that nice warm feeling in you tummy.
:beer: