Building Societies Punish Savers
November 2011 – An article by Jo Thornhill in the Financial Mail Womens’ Forum states that savings interest rates plunge as bonuses catch out customers.
“Banks and building societies are punishing savers with a devastating double blow of paltry rates combined with confusing terms”. “As much as £200 billion in savings is earning less than 0.5%”
Link to Financial Mail Womens’ Forum
New Chief at One Savings Bank (Kent Reliance Banking Services)
October 2011 – Andy Golding the current Chief Exec of Saffron BS is to take over as Chief Exec of One Savings Bank (ex Kent Reliance BS). Golding will be the fourth Chief Exec that the bank has had since it received the FSA’s approval in February this year.
Golding had previously criticised Mike Lazenby, former chief executive of Kent Reliance for selling out to JC Flowers to form One Savings Bank.
Mortgage Strategy Report – Twist at the End of Society Soap Tale
Nationwide Building Society – “Rethink”
September 2011 – Thisismoney reports “Savers scored a victory today when Nationwide withdrew a sneaky clause on one of its savings accounts following enquiries by This is Money. Britain’s biggest building society is refunding all customers who have lost interest as a result, provided they closed* their account on or after 1 September. Nationwide had come under fire for a stealthy ploy that robbed up to a month’s interest from customers of its MySave Online Plus account”.
Our Comment – Nationwide – “On Your Side”?
Thiismoney Report
Nationwide Building Society – “Dirty Tricks”
September 2011 – Thisismoney reports “Britain’s biggest building society, Nationwide, is using a little-known clause to rob savers of up to a month’s interest when they close their account. Savers have been left aghast by the ‘dirty trick’ hidden away in the fine print of Nationwide’s MySave Online Plus account”.
Our Comment – Nationwide Building Society’s latest, meaningless catchphrase is “On Your Side”!!
Thisismoney Report
Treasury Select Committee on Cheques
August 2011 – The Treasury Select Committee has said that building societies and banks should be stripped of the “unfettered power” to decide the future of cheques.
The Chairman of the Treasury Select Committee went on to say “Cheques have been saved, for the moment, but we need to remain vigilant. The incentives for the industry to get rid of cheques has not gone away. The Payments Council is an industry-dominated body with no effective public accountability.”
He also said that building societies and banks should write to customers to assure them that they will continue to honour cheques for the foreseeable future.
Guardian Report
Norwich & Peterborough and Yorkshire Building Societies
August 2011 – Official notice has been given of the proposed takeover of Norwich & Peterborough BS by Yorkshire BS.
Anyone interested can make written representation to the FSA or give notice to make oral representation, on or before 16 September, details atnandpbs.representations@fsa.gov.uk .
Oral representations will be heard on 29 September at a time and place to be determined by the FSA.
Yorkshire Egg
July 2011 – Yorkshire BS having announced increased half year profits of 27% (including the takeover of Chelsea BS) has also announced that it is to buy the mortgage and savings business of Egg Banking.
Nationwide Building Society 2011 AGM
July 2011 – In an attempt to defend the enormous increases in the amount of members’ money taken by the directors yet again, the chairman Geoffery Howe, uttered this unbelievable remark:
“What would the Financial Services Authority say if our chief executive was paid just £100,000? It would shut us down. Nationwide would cease to exist.”
Our Comment – What amazing powers the FSA possesses !!!
Nationwide Building Society directors are often criticised by members and by the press for being money grabbing fat-cats whose only interest is in lining their own pockets with as much of members’ money as they can possibly get away with. But are such criticisms fair?
Click here to find out why it is so unfair to criticise the directors of this society
Thisismoney – Report by Richard Dyson
The Guardian – John Gower – Building Society Directors’ Pay – A Cosy Racket
Mutual Fat-Cats – FT Report
Thisismoney – Jeff Prestridge – Last Chance
Mail Online
Telegraph
Nationwide Building Society Voting
July 2011 – It is AGM time once again for the Nationwide Building Society. The annual report shows that directors are still helping themselves to large portions of members’ money even though interest rates for savers are abysmal.
As always the ballot paper includes the infamous and strongly highlighted “Quick Vote” – WHICH YOU SHOULD ALWAYS IGNORE.
Savings interest rates are as low as 0.1% and profits fell again. Nevertheless the chief executive’s pay jumped from £1,539,000 to £1,884,000. His basic salary was £650,000, the rest is bonuses and that is just for running a building society. That is about 14 times the amount a Chancellor of the Exchequer is paid for running the economy of the whole of the United Kingdom!!
Nevertheless there is sadness in the boardroom as the Remuneration Committee has found, after considerable research and investigation, that the chief executives’ pay is (surprise, surprise) too low. So this year his basic pay is being increased by £175,000 to £825,000. The society’s remuneration committee said it recognised “that base salary for our executive director roles has fallen below a market competitive range over time and that this was not a sustainable position”.
However the board goes on to explain that “the Nationwide is different because they put members needs first” !!!
A vote “For” makes no difference.
The only meaningful action that you can take is to vote “AGAINST”.
Never ever use the infamous “Quick Vote”
You are always asked to vote in favour of the Annual Report (we recommend you vote against) but unless you request a copy you will never know what the vote is for. Call at a branch or telephone 0800 30 20 15 and ask for a copy of the Full Annual Report and Accounts, you will not receive one unless you ask.
Over 14,000,000 Nationwide BS members did not vote for any of the board’s resolutions last year.
Alan Debenham intends to attend the AGM again this year so you can nominate him as your representative if you wish to do so. If you have any queries please e-mail Alan Debenham at alandebenham@hotmail.com.
Nationwide BS AGM to be held – 21st July – Queen Elizabeth Conference Centre – Westminster – London.
For a forum for UK ex-pats go to: http://ukexpats-nationwide-agm.1055033.n5.nabble.com
Nationwide and Cheshire Building Societies
June 2011 – Three men have been imprisoned after admitting their role in a £50 million deception committed against mortgage lenders including Nationwide BS and Cheshire BS (now part of Nationwide BS).
In sentencing, the judge said the team operated a “massive and carefully orchestrated confidence trick” over two years that duped banks and buildings societies of almost £50 million, very little of which has been recovered.
Serious Fraud Office Press Release
Nationwide Building Society
May 2011 – Nationwide BS has set aside £16m to repay customers who have been mis-sold Payment Protection Insurance.
The financial ombudsman received over 200,000 complaints about PPI policies and upheld 3 out of 4 cases in favour of consumers.
Telegraph Report
Revealed: Fat-Cat Society Bosses Pay
April 2011 – Thisismoney reports on the inflated payments that building society directors are helping themselves to.
Fat-Cat Society Bosses Pay
‘Grotesque’ Greed of Society Bosses
Building Society Key Details
Skipton Building Society
April 2011 – Skipton Building Society faces AGM anger over rewards and executive’s payoffs.
Members expressed their anger on boardroom pay, in particular the package given to former finance director Tom Wood, who ‘resigned by mutual agreement’ last September, just one year after joining.
Wood was in the post for just 54 weeks and cost £714,068, including relocation expenses of almost £98,000 plus £262,000 as ‘compensation for loss of office’.
Daily Mail Report
Yorkshire and Norwich & Peterborough Building Societies
April 2011 – It is now confirmed that the Yorkshire BS will takeover (merge with) the Norwich & Peterborough BS.
N & P members will be able to vote on the issue at the society’s AGM in August. N & P will cease to exist as a building society in November but will continue as a brand name.
BBC News
Norwich & Peterborough BS
Yorkshire and N & P
Norwich & Peterborough Building Society
April 2011 – The Norwich & Peterborough BS has been fined £1.4m by the FSA and the society has set aside £57m as compensation for those members who had been mis-sold investments in Keydata. The FSA states “N&P failed in its basic duty to provide suitable advice to its customers, despite an internal compliance report pointing out that there were problems as early as 2007″.
There is only one place that this money can come from and that is the society’s members.
The AGM, due to be held on 27th April, is expected to be a very lively affair. However the current chief executive, Matthew Bullock, will not be in attendance as he is finally on his way out but the chairman is still clinging on. A new CE, Anne Gunther (a banker), will see the society through to its takeover by the Yorkshire.
This appears to be yet another case of the board focusing on directors bonuses, through increased profits from Keydata commission payments, before members interests.
The society is expected to be taken over by the Yorkshire BS subject to the agreement of members of N&P.
FSA Report
Mail OnLine Report
Yorkshire and Norwich & Peterborough Building Societies
March 2011 – The Yorkshire BS and Norwich & Peterborough BS websites state that the societies are in talks with a view to a takeover (merger) by Yorkshire.
This follows a report from Ian Cornish (now ex chief executive of Yorkshire BS) last month that this society is seeking to reduce the number of “mutual” societies by taking them over where and when opportunities arise.
Yorkshire Building Society
Norwich & Peterborough BS
Nationwide Building Society – Members Betrayed
March 2011 – Members of this society living in south east London feel betrayed by the decision of the Nationwide BS to close all (10) of its branches in that area. The local MP has called for a debate in Parliament. Nationwide is to close total of 13 branches in all.
Guardian Report
Wordpress
BSA & FCA
February 2011 – The Building Societies Association has expressed concern that the new Financial Conduct Authority is being referred to as a “Consumers’ Champion”.
Our Comment – The BSA seems to believe that consumers (members) are receiving enough help already.
BSA News Feature
Yorkshire Building Society
February 2011 – According to the chief executive (Ian Cornish), who has just announced his resignation, the Yorkshire Building Society is keen to takeover any ailing societies that may come its way.
South West Business Report
Kent Reliance Building Society
February 2011 – The sudden departure of the chief executive (Mike Lazenby) was announced (while he was in India). The Telegraph reports that ” a source close to the situation said he was deemed not to have the appropriate skills to run the new bank”. The finance director Bob Scruton has been put in charge temporarily.
Our Comment – What will happen next at this strange “mutual” cum bank?
Telegraph Report
Hinckley & Rugby Building Society
February 2011 – The H&R has a savings account entitled “High Rise – Easy Access”. The High Rise of the interest rates is from 0.05% on £5,000 to 0.4% on £100,000. This seems to be yet another building society account with a very misleading title.
Christopher White the Chief Executive states in the 2010 Summary Annual Review “I am totally committed to the Society’s “mutual” status and equally convinced of the benefits that this status brings to our members”.
Mr White’s pay for the year was £175,000. Non-Executive Director Teresa French, who is also a full-time NHS director(!), received £23,000. It would seem to be more accurate if the last word of the above paragraph was “directors”.
Nationwide Building Society – Branch Closures
February 2011 – The Telegraph reports that after closing 150 of its agencies last year the Nationwide BS is also closing a large number of its branch offices despite showing a profit increase of 26% in the second half of 2010.
Our Comment – “The building society that likes to be indifferent”!
Telegraph Report
Kent Reliance Building Society
January 2011 – The Financial Services Authority today announced that on 24 January it confirmed the transfer of the business of Kent Reliance Building Society to OneSavings plc under the Building Societies Act 1986.
The FSA’s written decision.
Copies of the decision will also be sent to the building society and to the one and only member of the society who made representations.
FSA Press Release
Which? Report
January 2011 – The consumer group Which? has published the results of a survey that they have carried out which shows that loyalty doesn’t pay for members of building societies and banks. The survey showed that two thirds of accounts that have remained open for six years or more now pay only 0.1% interest. This is despite the fact that the bank rate is 0.5%.
Which? report
Kent Reliance Building Society
January 2011 – The FSA hearing on the application by the board of the Kent Reliance BS to convert to a “semi-mutual” was held at the FSA headquarters on 6th January.
A lone member attended the hearing to give evidence against the proposal. The Kent Reliance board sent in the banking industry’s top lawyers to deal with Mr Michael Laws who opposed the conversion. The board also sought further help by engaging former FSA chairman Sir Callum McCarthy to chair the new bank.
It is not known if any written objections were sent to the FSA. The proposal was not a very popular one with its members and was approved by a majority of only 0.8% of savers and based only on the information fed to them by the board of the society. There was no prior involvement of members in the process, no canvassing of views and opinions, no discussion and no feedback to members – but that is “mutuality”.
The decision of the FSA will be published in two weeks time.
Telegraph Report
Nationwide Building Society
January 2011 – The Daily Mail has nominated a list of the 10 most complained about companies in 2010 for Wooden Spoon Awards – Nationwide BS is the second worst on the list.
Our Comment – The Mail states that customers believe that Nationwide is more focused on generating sales than serving its customers.
Thisismoney Report