Nationwide's 'agreed' overdraft.

[indebtstudent]

I've just noticed that Nationwide still has the same info in its overdraft litereature. They are not even trying to hide the nature of the charges like some banks.

 

I wonder what implications this will have for thier part in the test case since my understadning was that, generally, places were running with the service charges argument?

[rory32]

Nationwide aren't involved in the test case, maybe they are waiting to see how it goes before reviewing their literature.

[soton]

Nationwide aren't involved in the test case, maybe they are waiting to see how it goes before reviewing their literature.

 

Are you sure? I thought they were?

 

Taken from an internet site.....

 

 

The Financial Services Authority has granted waiver to the banks, so that they are no longer obliged to handle complaints about unlawful bank charges.

No, this is not because it's ruled that charges are lawful. In fact, it's because the Office of Fair Trading thinks they aren't lawful, and is taking a super-claim to court to get the matter settled once and for all.

The banks being taken to court are: Abbey National, Barclays, Clydesdale, Halifax, Bank of Scotland, HSBC, Lloyds, Nationwide, NatWest and Royal Bank of Scotland.

[indebtstudent]

They definately are, we got a briefing on it. It was woefully inadequate and I still encounter colleagues who say the customer has done something wrong by going over thier limit. Geez give me a break... lol

 

I find it very puzzling, I only noticed on increasing my limit.

[callumsgran]

Nationwide aren't involved in the test case, maybe they are waiting to see how it goes before reviewing their literature.

 

 

 

 

OOOOPPPPSSS!!!!

Someone hasnt been doing their homework :?

[MilkTrayMan]

FWIW...

 

Nationwide is Scotland's 2nd largest banking provider!...

[indebtstudent]

On the whole Nationwide does some very good things, like campaigning against fee charging ATM's and negative allocation on payments on credit cards; which is why it is such a shame that they are so wrong on this.

 

I guess being smaller than the banks they couldn't afford to lose the revenue until there was a level playing field. I'd love to roast the CEO about this though...

 

I wonder if the comment above and the number of cigaretts bought abroad by people from Scotland is a co-incidence

[MilkTrayMan]

...they couldn't afford to lose the revenue until there was a level playing field.

If they STOPPED acting like the Banks with Shareholders...+ STARTED acting like a Building Society for the benefit of its Members, then it would gain revenue!

 

There is NO reason why it shouldn't be the market leader with the lowest %APR for Personal Loans, O/D's etc + the higest %APR for Deposit Accounts, ISA's etc.

 

Makes U wonder why it's NOT, when there's NO money siphoned off by Shareholders, doesn't it??

 

 

 

 

I'd love to roast the CEO about this though...

U can...the next time that there is a vote for Members of the Board.

Just un-elect him + replace him with someone who cares for what a Building Society should be all about...It's Members!!!

[indebtstudent]

"Just un-elect him + replace him with someone who cares for what a Building Society should be all about...It's Members!!!"

 

I believe over a million voted and off the top of my head approx 45,000 voted against re-election.

 

In Nationwide's defence until recently the overdraft was just 7.75%, it only went up recently and now its 9.9%. HSBC charge 18.8%, there was one stage when the loan rate was about the same as the OD rate.

 

I agree that in some ways Nationwide acts like a bank but I do feel they have to be careful with what they offer in that they want to attract members that contribute and thus everyone is better off. If we offered say a REALLY cheap mortgage we'd get loads of new customer from brokers who would just move the second there was a cheaper deal.

 

Nationwide's FlexAccount runs at a loss, I believe every new Flex opened costs £40 and that was BEFORE allt his charges stuff.

 

That said I feel the policy on charges is wrong headed. I mean if they had put thier charges down to say £10 alright they would still be getting sued BUT there would be clear water between Nationwide and the banks, and some admission of having made an error.

[MilkTrayMan]

...I agree that in some ways Nationwide acts like a bank but I do feel they have to be careful with what they offer in that they want to attract members that contribute and thus everyone is better off.

So what U are advocating is, that if a potential Member (...+ I stress the word Member, as opposed to Customer!) isn't going to contribute to further profits i.e....ISA's, Mortgages etc etc, then that potential Member is NOT worthy of even a basic Flexaccount with Nationwide??

 

 

 

 

...Nationwide's FlexAccount runs at a loss, I believe every new Flex opened costa £40 and that was BEFORE allt his charges stuff...if they had put thier charges down to say £10...

U know as well as I do that £10 is NOT a reflection of TRUE costs + is therefore unlawful.

 

This extremely crass statement of yours is ever so reminicient of Credit Card firms who STILL try to justify their NEW £12 unlawful Fee.

Perhaps the £40 cost of the Flexaccount is just made up of exhorbitant Staff costs + inefficient manual administration??

 

Mmmm...Methinks Don't bite the hand that feeds U eh IDS??...

[indebtstudent]

"Perhaps the £40 cost of the Flexaccount is just made up of exhorbitant Staff costs + inefficient manual administration??"

 

This is not true, I've worked in several branches and there are simply not enough staff!

 

I do not KNOW that £10 is not the true cost, I don't have access to that data. I do remember seeing a comment on here that one bank manager was overjoyed when Nwide started offering current accounts because they took a lot of thier unprofitable customers.

 

In all honesty I think the banks wanted to introduce monthly fees anyway, (look at HSBC's increaing promotion of premium products) and it is unfortunate indeed that they are trying to use thier own unlawful behvaiour as an excuse to justify introducing fees.

 

I do think it will be interesting if all banks and Building Societies try to impose these charges since people already feel, in general, that branches are inadequate.

 

I admit that here I am exploring arguments advanced by colleagues, most of what they say is rubbish, but I find with most things the answer is a little from column a and a little from column b.

 

 

[indebtstudent]

Oh and that's £40 per year, not £40 as a one off. I don't have a source but it did come from a manger.

 

My mistake I should've been cleared about that.

 

Also Nationwide has a much higher than average % of dormant accounts, so many in fact that they have changed the criteria for opening a FlexAccount. I'm not saying whether this is right or wrong merely adding a fact.

[MilkTrayMan]

Pssst...indebtstudent...

 

Keep changing font throughout a Thread, can make the Thread difficult to follow for others + make them less likely to contribute to any argument/debate/discussion that is taking place...

 

 

P.S....Nice Post Count No. (666) btw...lol...

 

 

...

[Andrew66]

It costs them to open a Flexaccount? They still find money to spend on TV advertising, newspaper advertising etc.And they were quick to give £50000 to farepak victims but won't give me my £1200 charges refund.

[indebtstudent]

It costs money to run a FlexAccount. Nationwide will make a loss on the 'free' cash withdrawals abroad which other providers charge for.

 

I think Nationwide is dead wrong on this issue and does not appear proud to be different here, or indeed the consumer champion they claim to be.

 

I can see why people are angry, hell my contract of employment says, essentially I MUST run my flexaccount in accordance with the T & C's (which themselves are of dubious leglaity!), but all I'm saying is I would guess the approach to charges was based on economics.

 

Oh and sorry for changing fonts, I believe when I copied something it changed the font or something.

[MilkTrayMan]

...Oh and sorry for changing fonts, I believe when I copied something it changed the font or something.

Try using the 'QUOTE' button of a Post!...

http://www.consumeractiongroup.co.uk/forum/welcome-consumer-forums/107001-how-do-i-dummies.html

 

 

...

[indebtstudent]

Awww a guide just for me, it even has my name in it (dummy)

[indebtstudent]

You heard it from a QC Nationwide's leaflet is 'wrong'.