Nationwide Building Society
November 2014 – Recent Nationwide Building Society publicity, in support of previous claims, states “We’re proud to support the Living Wage Foundation”.
“As the country’s biggest building society, we wanted to take a leading role in the campaign. It just feels like the right thing to for us to do.”
The living wage for one employee, Graham Beale the chief executive, seems to be around £2,571,000 per year and rocketing every year. Presumably the “target” set for Mr Beale’s living wage for next year is £3,000,000 of members’ money.
On your side?
Stop Stinging Customers with Rip off Additional Charges
November 2014 – The consumer organisation Which? has called on the government and the FCA to help to stop the industry using tricks to rip of borrowers. The Which? report, including a list of 40 different “fees”, shows all the tricks used by building societies and banks that confuse borrowers.
Which? states: “In order to improve effective competition and drive better outcomes for consumers in the mortgage market, the Government, Financial Conduct Authority (FCA) and the industry must act together to implement the following:
1. Stop making it hard to compare prices/Make mortgage price comparison easier for consumers.
2. Don’t hide the full cost from customers/Make the full cost of a mortgage clearer for consumers.
3. Stop stinging customers with rip off additional charges/Ensure additional mortgage fees and charges are cost reflective.
What hope is there of that happening? Answer – nil.
Which? Report
Saffron Building Society Chief Executive’s Sudden Departure
October 2014 – The Saffron BS has sent out letters to all members to advise of the sudden departure of the chief executive Jon Hall. The finance director will be acting as chief executive until a replacement is found.
It was announced earlier this year that Jon Hall had received the biggest percentage pay increase of all building societies at 33%. Much to the disgust of members who receive such pitiful savings interest rates.
This news does not appear on the society’s website and no explanation for his sudden departure has been provided.
Jon Hall about to depart
Why do Building Societies Ever Rip Off Their Customers?
October 2014 – James Daley of Fairer Finance.com asks the question, in his blog, following the report on the fine imposed on the Yorkshire Building Society.
James Daley reports that Iain Cornish, chief executive at the time, is now on the board of the Prudential Regulation Authority – the sister regulator of the Financial Conduct Authority, which fined Yorkshire Building Society twice at over £5m for failings that he presided over in the year he got a 33% pay rise!
“Funny old world” says James Daley. No doubt not half as funny as Iain Cornish sees it.
Why do Building Societies Ever Rip Off Their Customers? by James Daley
Yorkshire Building Society, Like All Building Societies is in the Last Chance Saloon
October 2014 – The Telegraph reports on the tricks that building societies play on their members.
“Sadly, many building societies had been up to the same tricks as their privately owned peers – and were in no position to step up to the challenge. Six years later, the sector continues to struggle to make the case that it is different from the rest.”
“Today’s announcement that Yorkshire Building Society, the second largest, has been fined £4.1m for treating its customers unfairly emphasises the industry’s missed opportunity. The fine is all the worse in that the mistreatment related to some of Yorkshire’s most vulnerable mortgage customers. Worse still, it is the society’s second fine in less than six months.”
Fortunately directors will continue to get their bankers’ bonuses while members will have to pay the fine.
Telegraph Report by James Daley
Yorkshire Building Society Mistreating Borrowers
October 2014 – All members of the Yorkshire Building Society will have to contribute towards payment of a fine of £4.1m imposed on the society by the Financial Conduct Authority for mistreating its borrowing members between October 2011 and July 2012.
Approximately 33,900 members will be repaid a total of £8.4 million. The management agreed to settle at an early stage of the FCA investigation and therefore members qualified for a 30% (stage 1) discount on the fine.
This society was fined £1.5 in June of this year for mis-selling products. Again a 30% discount was given.
Members will be pleased to know that they will be footing the bill while pay for directors will continue to increase and will not be adversely affected.
Financial Conduct Authority Report
Building Societies Disappearing
October 2014 – A Daily Telegraph report states that accountancy firm PwC and the Local Data Company have reported a reduction of 96 building societies (branch offices) throughout the UK during the first half of 2014.
Telegraph Report
Nationwide Building Society Shoots Itself in the Foot
September 2014 – A Financial Mail report claims “Your” Nationwide Building Society has itself claimed that it has not been too honest in dealing with a customer complaint but has refused to compensate the customer for the full amount claimed in a mix up over a savings account interest rate.
Thiismoney Report
Nationwide Building Society and Yorkshire Building Society Cut Savings Rates – Again
September 2014 – Thisismoney reports that Britain’s two largest building societies – Nationwide and Yorkshire – have cut savings rates. Savers have to be wary of bonuses running out where rates can plummet to as little as 0.25?per cent.
Savers in “Your” Nationwide Building Society Web Isa 3 will see their rate drop from as much as 2.25?per cent to 0.5?per cent at the end of this month.
However directors bonuses are not affected and continue sharply upwards as always.
Thisismoney Report
Building Societies Savings Trap by Which?
July 2014 – The consumer watchdog Which? has produced a report highlighting some of the dubious practices used by building society directors against the best interests of members of those societies.
So much for a Bankers’ Oath!
Which? report
Bankers’ Oath
July 2014 – The think tank ResPublica says the British Bankers’ Association, Building Societies Association and the new Banking Standards Review Council should adopt an oath for their members.
A report produced by the think tank says an oath for bankers should be introduced to raise accountability and standards in banking.
An extract from the oath says: “I will do my utmost to behave in a manner that prioritises the needs of customers.”
“As part of this, case studies from home and abroad will be analysed and best practice examples from the banking and other sectors examined, to explore how banks couldmake their processes more democratic and their actions more ethical.”
Among those attending the presentation was a Nationwide Building Society director!
Guardian Report
Loughborough University
Nationwide Building Society AGM
July 2014 – “Your” Nationwide Building Society directors held their 2014 AGM at the Conference Centre in Bournemouth and plan to hold it at the same venue in 2015. So there are not too many angry voices for them to listen to once again.
As is customary “your” Nationwide directors shared a considerably increased chunk of members’ savings between themselves.
The amount taken by the “your” chief executive alone was £2.571,000 (up 14% on 2013) and is now equal to the pay of 19 Chancellors of the Exchequer and the multiple increases every year without fail.
“Your” Nationwide 2014 Summary Financial Statement consists of 20 pages. Just 2 are devoted to the annual financial results but 11 are devoted to a “summary” of the remuneration for “your” Nationwide directors.
Do you wonder why “your” Nationwide directors should receive far more pay than directors of any other building society when benefits for members of “your” Nationwide are not better than those of any other building society?
Do you believe “your” Nationwide directors should help themselves to such massively increasing amounts of members’ money every year and still claim it to be mutual?
Do you wonder what purpose and whose benefit a building society is intended to serve?
Is it “your” Nationwide or “your” directors Nationwide? Do you believe that “your” directors always act in “your” best interests or in their own best interests?
Do you think that the infamous “Quick Vote” trick that the directors use is for your benefit or for their benefit? If you believe the “Quick Vote” trick is unethical give your support to the BSMA.
Do you wonder why there is a “Quick Vote” for members who wish to support everything on the ballot paper but no “Quick Vote” for those who are opposed to everything on the ballot paper?
Do you think that the directors of “your” Nationwide should help members to submit resolutions and present them? Or do you think that they should continue to oppose and suppress member resolutions?
Nationwide is the largest building society in the UK yet its performance for members is pitiful and is beaten by other societies. Nevertheless every year the directors help themselves to increasingly massive amounts of members’ money and every year they use the infamous “Quick Vote” trick to get members to support them.
Nationwide’s Executive Pay Remains a Disgrace – Ian Lucas MP
“Your” 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 is it Fair to Criticise the Directors? – Check Here
Family Building Society to Launch?
July 2014 – A report by Thisismoney suggests that a new or resurrected building society might be in the process of being launched?
Thisismoney Report
Yorkshire Building Society – Fined £1.5m for Mis-selling
June 2014 – The Yorkshire Building Society has been fined by the Financial Conduct Authority for the distribution and promotion of unsuitable financial products. The mis-selling was actually identified by Which? as long ago as 2010! Unfortunately it is the members of this society who will suffer the loss, as usual, not the directors responsible.
Other building societies are also involved but no penalties have been announced.
The FCA has given the YBS a 30% discount for early settlement! Not surprisingly there is no mention of this action on the Yorkshire Building Society website.
Financial Conduct Authority Press Release
In addition to Yorkshire the full list of building societies involved, according to Saga Magazine, is as follows:
Principality Building Society
Saffron Building Society
Leeds Building Society
Cambridge Building Society
Stroud and Swindon Building Society (now part of Coventry BS)
Chelsea Building Society
Banking Standards Review
May 2014 – The wheel is being re-invented once again. Yet another organisation is proposed to monitor banking standards of banks and building societies. Sir Richard Lambert has produced a report following yet another consultation with the industry but not with customers or shareholders. Sir Richard has considered the need for new professional qualifications within the banking industry and how best to raise overall standards of behaviour. The body will be “independent” but funded by the industry and it will be voluntary (toothless) and subject to self-assessment (pointless).
This is in addition to the Financial Conduct Authority and the Prudential Regulatory Authority. So how will this one succeed where others have failed again and again?
The format of the consultation, the questions in the consultation, many of the the responses and responders to the consultation are all very familiar and in some cases the responses are well-worn.
Customers and shareholders are the ones who suffer through the actions of the industry and it is customers and shareholders who suffer when fines are imposed but they are given no opportunity for any involvement in the regular process of consultations and committees that are supposedly intended to protect them.
One response states: “Undesirable business practices can have the habit of spreading throughout an entire industry. This can have the effect of seeming to legitimise such practices”. An excellent example of this is the infamous “Quick Vote” on ballot papers used by building societies.
Banking Standards Review
Nationwide Building Society – Profits Triple
May 2014 – Not surprisingly profits have soared at the Nationwide BS. Aided by the Government’s “Help to Buy” scheme, problems at the Co-operative Bank, buy to let mortgages and, in particular, by savers who continue to suffer poor interest rates on their savings.
The annual report, soon to be released, will no doubt show who the major beneficiaries are in the Directors’ Remuneration Chart. Building societies do not need to make massive profits yet the directors’ “bankers bonuses” are based on profits!
While the directors can look forward to another massive gravy train stopping at Swindon the staff have been rewarded by seeing all of their names appear in barely legible and minute print and in random order in large spread advertisements for this building society in the daily newspapers.
That must have given a tremendous boost to the morale of staff (and members who have paid for it). An internal memo might have spared members the tremendous expense but it is, no doubt, insignificant compared with the cost of the boardroom.
Nationwide Building Society Press Release
Building Societies Can’t Justify Fat Cat Pay Rises
May 2014 – A member of the Skipton Building Society, Robin Waite, writes in from Leeds with a request. “Can you give some publicity to the Skipton Building Society?” he asks. But not to praise it. Far from it. In fact Robin is angry at the amount of members’ money taken by chief executive David Cutter.
Belfast Telegraph Report
Saffron Building Society – 33% Pay Increase for the Chief Executive
May 2014 – Another big pay increase for directors at this small society. A member described the chief executive as acting as Robin Hood in reverse for members and staff.
Thiismoney Report
Belfast Telegraph Report
Nationwide Building Society – New Chairman
May 2014 – David Roberts is to leave his post as deputy chairman at Lloyds Bank to become chairman-in-waiting at the Nationwide Building Society in September 2014. This will enable him to get synchronised with the slower pace of the “mutual” model where accountability is no problem. He will take over the role of chairman after the AGM in July 2015.
Pay Booms for Directors of Building Societies’ as Savers Suffer More Than 1,000 Interest Rate Cuts
April 2014 – Thisismoney reports that directors of building societies continue to plunder members funds while imposing severe cuts to savings interest rates for millions of members.
The report shows the fattest percentage increase goes to Jon Hall at Saffron Building Society at 33% where 84 cuts were made to savings account interest rates.
Our Comment – Members await with bated breath to see the usual huge and ever increasing amount that will be taken from members funds by the board at the “On Your Side?” Nationwide Building Society where savings interest rates continue to be pathetic.
Thisismoney Report
Democratise Nationwide Building Society
April 2014 – The two members of Nationwide Building Society failed to gain sufficient nominees to support resolutions and to put themselves forward for election to the board at the AGM much to the delight of the “On Your Side?” board of directors who have made it impossible for members.
Democratise Nationwide Building Society
March 2014 – Two members of the Nationwide Building Society propose to stand as candidates for the board and to put forward resolutions at the AGM in July.
Nationwide Building Society Executive Pay Remains a Disgrace – Ian Lucas MP
March 2014 – Ian Lucas MP expresses concern at the enormous pay levels and pay increases that the directors of this “mutual” society take from members.
Nationwide’s Executive Pay Remains a Disgrace – Ian Lucas MP
Yorkshire Building Society Overcharged borrowers
February 2014 – Yorkshire Building Society has to pay back £8.4m after the Financial Conduct Authority discovered it had breached rules over the charging of fees on mortgage customers who were in arrears.
Thisismoney Report
Nationwide Building Society Accused of Interest Rate Swaps Mis-selling
January 2014 – The Telegraph reports that the Nationwide has become the first building society to become involved in the interest rate hedging products mis-selling scandal after a London property developer launched legal proceedings.
Telegraph Report
Goldsmith Williams