Savings Ac Rollover

nw

Hi,

I need some advice re. a savings account roll over please.

I invested in a 20mth savings account with Permanent TSB with matured in Jan 2012. However, as I am currently not living in Ireland, I did not receive the letter from the bank indicating that I had 2 weeks to notify the bank of what I wished to do with the money. As I did not notify the bank, the account rolled-over.
The problem is that I wish to transfer a small percentage of the money into my savings account and reinvest the rest. The bank not offer better interest rates (4% aer) and of course I wish to avail of these improved rates.
However, the bank is insisting that if I wish to move to a savings account with a better rate, I will have to pay a penalty of over E600. I will also have to pay a penalty to transfer a small amount of money to my current account.
Thus, my option is to leave my money in this underperforming saving account for another 17 months; or move my money and pay a fee.
I feel really let down by the bank as I have been a client for many years- I feel that they are treating me as a number and not a person and they are refusing to take into account my situation. I really feel like leaving the bank although this will be a huge amount of hassle for me.

Any advice please? Is there anything I can do?
I just spoke to the manager and he insisted that they sent the letter to the address I had given (in Ireland), and thus they are not culpable. He also noted that the bank make every effort to call clients also - I asked if he had records that they called me and he wasn't sure. Is the bank obliged to call clients if they do not hear from them in the 2 week period (before they proceed to rollover the money?). I can check my Irish mobile to see if I have missed calls from the bank.

Any help kindly received,
Regards,
Niamh

unclebill98

The bank tried to contact you via letter. That's the requirement as set out in the original t&c's when you invested. You would have been made aware of the roll over feature.

I'd not bother checking missed calls etc. These things are black and White and unfortunalty you have fallen foul of them.

So, make a complaint. Get there final response and refer it to the ombudsman. Tell the bank manager you are going to refer this if they do not give you your funds penalty free. This may change the position they are taking.

Tbh banks are killing each other to retain funds and will waive such charges if they believe funds the at risk of being lost.

Good luck.

pjmn

Not sure an Ombudsman will change the decision here, assuming the Bank has adhered to it's terms and conditions, s/he will find in their favour.

Pablo Sanchez

unclebill98 wrote: »

The bank tried to contact you via letter. That's the requirement as set out in the original t&c's when you invested. You would have been made aware of the roll over feature.

I'd not bother checking missed calls etc. These things are black and White and unfortunalty you have fallen foul of them.

So, make a complaint. Get there final response and refer it to the ombudsman. Tell the bank manager you are going to refer this if they do not give you your funds penalty free. This may change the position they are taking.

Tbh banks are killing each other to retain funds and will waive such charges if they believe funds the at risk of being lost.

Good luck.

What would the substance of the complaint be exactly?

People are so quick to lay off their mistakes these days, god knows the FSOB has enough real complaints to adjudicate on.

JTMan

It is poor practice for banks to roll term deposits into new terms without consent but sadly legal.

Good banks don't do this. For example, Nationwide UK roll into an instant access account.

Niamh - Try and escalate it inside PTSB or pay the fine or wait out another 20 months

unclebill98

I agree with you. It's tough luck. However on numerous occasions I've seen these fees waived and on a few occasions the initial letter from an ombudsman was enough to go in the consumers favour.

The basis of the complaint will be what ever way the op states it. Not given all the answers away.

In this instance given that the op is being truthful it's a bit harsh.

JTMan

Pablo Sanchez wrote: »

What would the substance of the complaint be exactly?

The Consumer Protection Code states that banks should always act with the consumers interest in mind.

How on earth is moving customers money into a locked 1 year 8 months savings account without prior written consent acting in a consumers interest?

It isnt. It is awful behavior. Consent should always be required for term deposit rolls.

Pablo Sanchez

Im sure the consent was written into the original application form, not saying its ideal but if they are not breaking the t+c's agreed then there is not much substance for a complaint.

TOMP

I had a PTSB one year account maturing in March, I opted to rollover into another 1 year account at 3.7%. The following week the rates increased to 4%! Did they advise me to holdoff? Not a hope. They will do whatever will make them a few extra bob.

It seems in this case they are totally acting within their own terms and conds (which are stricter than other banks)

My suggestion is to write and send a letter to PTSB, officially notifying them of your decision to close your account and withdraw your money at account maturity. However tell them if they want to play ball with you, you may reconsider your decision.

JTMan

Pablo Sanchez wrote: »

Im sure the consent was written into the original application form, not saying its ideal but if they are not breaking the t+c's agreed then there is not much substance for a complaint.

It is.

The T&C's need to comply with the Consumer Code otherwise they are null and void. The Consumer Code takes precedent.

Pablo Sanchez

Fungus wrote: »

It is.

The T&C's need to comply with the Consumer Code otherwise they are null and void. The Consumer Code takes precedent.

Id be pretty certain that their compliance department will confirm that the terms are in accordance with the CPC.

greenman09

Pablo Sanchez wrote: »

Id be pretty certain that their compliance department will confirm that the terms are in accordance with the CPC.

Otherwise they would not be displayed.

JTMan

Pablo Sanchez wrote: »

Id be pretty certain that their compliance department will confirm that the terms are in accordance with the CPC.

One would think.

The reality is that banks frequently take a highly liberal approach to compliance with the CPC.

Compliance is by its very nature open to interpretation.