DrMoriarty
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NIB Ditch Free Banking For New Customers and now existing customers
- Thread starter Lightning
- Start date
NIB called me a few times recently, asking me to come in so they could review my accounts.
I was surprised by this and said I was perfectly happy with things the way they were. I'm naturally very suspicious about something like this
Now I'm guessing it might have been related to this change. I've heard nothing from them regarding charges to date.
I was surprised by this and said I was perfectly happy with things the way they were. I'm naturally very suspicious about something like this
Now I'm guessing it might have been related to this change. I've heard nothing from them regarding charges to date.
NIB called me a few times recently, asking me to come in so they could review my accounts.
I was surprised by this and said I was perfectly happy with things the way they were. I'm naturally very suspicious about something like this
Now I'm guessing it might have been related to this change. I've heard nothing from them regarding charges to date.
NIB started by asking existing customers to change current account type.
NIB are now forcing existing customers to change current account type.
iv an Easy current account with a small(ish) Overdraft,i also have a tracker mortgage with them.I wonder will they reveiw the overdraft now when they change over our accounts as part of the process?
seems the Cheapest of their new accounts doesnt even offer a o/d anyway !
seems the Cheapest of their new accounts doesnt even offer a o/d anyway !
I got a letter today:
"From 7th May 2012, your National Irish Bank Easy account(s) will be replaced by our new 24/7 package..."
so no choice there.
They helpfully add "if you decide our changes are not for you, you can of course choose to close your account by writing to your local branch".
"From 7th May 2012, your National Irish Bank Easy account(s) will be replaced by our new 24/7 package..."
so no choice there.
They helpfully add "if you decide our changes are not for you, you can of course choose to close your account by writing to your local branch".
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serotoninsid
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I have an easy account - but have not (as yet..) received this letter. However, I have just mailed someone in NIB - for clarification. Will post back the response here when I have it.
This is the same letter I got.
However, it is a condition of my tracker mortgage with them that I maintain a current a/c with them. Until now, there were no charges associated with this. With the introduction of charges, this now looks to me to be in breach of the banking consumer protection code, which states: "A [FONT=Calibri,Calibri][FONT=Calibri,Calibri]regulated entity [/FONT][/FONT]must not make the sale of a product or service contingent on the [FONT=Calibri,Calibri][FONT=Calibri,Calibri]consumer [/FONT][/FONT]purchasing another product or service from the [FONT=Calibri,Calibri][FONT=Calibri,Calibri]regulated entity[/FONT][/FONT]. "
I've contacted them about this. It will be interesting to see what way this plays out....
I agree, my T&c’s state;
Where your general current account is not maintained by us (you are not obliged to do so) you must maintain a separate current account with us (to service the loan) on our usual terms or such other terms as may be agreed………………………………..
I think if pushed they would have to waive this charge if the a/c was only used to service the mortgage, any other activity whatsoever and the charge would apply.
Either through the necessity of needing a current account or complacency the vast majority will stay with NIB and pay these charges.
I have two free current a/c’s with them and have not yet received the letter.
I think they may well have to: on reading the Consumer Protection Code in a bit more detail, there's a clause:
"Where a [FONT=Calibri,Calibri][FONT=Calibri,Calibri]credit institution [/FONT][/FONT]requires a [FONT=Calibri,Calibri][FONT=Calibri,Calibri]consumer [/FONT][/FONT]to open a feeder account in order to avail of another product, this shall not be prevented by Provision 3.17 where all of the following conditions are met:
a) the [FONT=Calibri,Calibri][FONT=Calibri,Calibri]consumer [/FONT][/FONT]must not be obliged to use the feeder account for purposes other than facilitating payments to the product concerned;
b) [FONT=Calibri,Calibri][FONT=Calibri,Calibri]charges [/FONT][/FONT]cannot be applied for using the feeder account for the purpose for which it was established;
c) where additional facilities are available on the feeder account they must be optional and only activated if requested by the [FONT=Calibri,Calibri][FONT=Calibri,Calibri]consumer[/FONT][/FONT]; and
d) these conditions must be communicated clearly to the [FONT=Calibri,Calibri][FONT=Calibri,Calibri]consumer[/FONT][/FONT]."
My reading of that is that if the only thing the a/c is for is to service the mortgage, they cannot charge for it.
serotoninsid
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I contacted NIB. They told me that they were "doing away with transactional banking for customers with transactional accounts". However, I was told that they had not made a decision for people in my scenario i.e. using the 'easy' account exclusively for mortgage servicing. I have rarely used it for anything else - have no atm cards with that account - and the only other transactions over the past few years involved a couple of others paying small sums into that account.
Apparently, they are obliged to give 2 months notice before any changes are made to accounts.
Based on the above, that makes me wonder whether some of you have also used your NIB account to some extent - in addition to servicing the mortgage - in order for you to have received these letters??? Is the account you hold actually the 'easy' account?
Apparently, they are obliged to give 2 months notice before any changes are made to accounts.
Based on the above, that makes me wonder whether some of you have also used your NIB account to some extent - in addition to servicing the mortgage - in order for you to have received these letters??? Is the account you hold actually the 'easy' account?
I use the account as a normal current account. Maybe that's why I got the letter.
Originally I think I opened it just because I needed it for my mortgage, but then I switched all my banking to NIB. It's actually a much better bank in many ways (compared to BOI) - better online banking, I can transfer money to others without going through the whole paper verification thing.
I don't like being charged but all things considered, it may not be too bad. Although I don't like the transaction charges - they could start to add up. €5 per quarter is acceptable to me for a good banking service.
Originally I think I opened it just because I needed it for my mortgage, but then I switched all my banking to NIB. It's actually a much better bank in many ways (compared to BOI) - better online banking, I can transfer money to others without going through the whole paper verification thing.
I don't like being charged but all things considered, it may not be too bad. Although I don't like the transaction charges - they could start to add up. €5 per quarter is acceptable to me for a good banking service.
A
Asco
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If the account is being used solely as a service account that you were required to open to have your mortgage then they can not have charges on it as any associated charges on the mortgage must be quoted as part of the apr. in addition, it is against the code to have the purchase of another product as a condition of a mortgage approval.
Nib will find themselves in a spot of bother if this is tested I would think.
serotoninsid
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Presumably, this is the reason they have not gone there. It appears from scallywags post below, he is getting the letter as not only is he using it to service the mortgage, he is using it on a transactional basis.
Maybe if folks were to move back exclusively to mortgage servicing use (and have their main current account elsewhere), then no charges will apply???
What on earth does that mean? What's "transactional banking"????
Interesting post.
Ulster and AIB do the exact same as NIB with some of their products. i.e. you must open one product with them in order to open another product.
See my follow-up post on this: this is allowed, provided there's no charge associated with it:
"Where a [FONT=Calibri,Calibri][FONT=Calibri,Calibri]credit institution [/FONT][/FONT]requires a [FONT=Calibri,Calibri][FONT=Calibri,Calibri]consumer [/FONT][/FONT]to open a feeder account in order to avail of another product, this shall not be prevented by Provision 3.17 where all of the following conditions are met:
a) the [FONT=Calibri,Calibri][FONT=Calibri,Calibri]consumer [/FONT][/FONT]must not be obliged to use the feeder account for purposes other than facilitating payments to the product concerned;
b) [FONT=Calibri,Calibri][FONT=Calibri,Calibri]charges [/FONT][/FONT]cannot be applied for using the feeder account for the purpose for which it was established;
c) where additional facilities are available on the feeder account they must be optional and only activated if requested by the [FONT=Calibri,Calibri][FONT=Calibri,Calibri]consumer[/FONT][/FONT]; and
d) these conditions must be communicated clearly to the [FONT=Calibri,Calibri][FONT=Calibri,Calibri]consumer[/FONT][/FONT]."
The code can be viewed at: http://www.centralbank.ie/consumer/cpc/Pages/home1.aspx
It's worth noting that while the word "code" sounds like it's a guide to be followed rather than something mandatory, that in fact:
"The Central Bank of Ireland has the power to administer sanctions for a contravention of this Code, under Part IIIC of the Central Bank Act 1942.
The provisions of this Code are binding on regulated entities and must, at all times, be complied with when providing financial services."
DrMoriarty
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Thanks for that, ang1170, very helpful.
I think personally I'll sit tight for the moment. Almost all of their communications to me are by email (by choice), so it's not as if the letter has gone astray.
I've just checked mine online and in their terms my account is described as a "Freebank Current Account". I haven't had any letter yet, although I use it for all sorts of things — chequebook, 2 ATM cards, multiple DDs and Standing Orders, occasional EFTs at home and abroad, etc. (very easy to set up/cancel payees online, unlike the nonsense BoI put you through...) And it's all been fee-free from the start, except for one or two occasions where I've inadvertently ended up overdrawn and have been hit for standard c/a quarterly fees, referral charges and interest — even when the overdraft was under 24 hours, which I grumbled about at the time but figured was my own fault.
I think personally I'll sit tight for the moment. Almost all of their communications to me are by email (by choice), so it's not as if the letter has gone astray.
serotoninsid
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Well, that's a direct quotation - but I would imagine it means all the things DrMoriarty listed...ie. chequebook, 2 ATM cards, multiple DDs and Standing Orders, occasional EFTs at home and abroad, etc.
I'm open to correction but I guess its an account that is actively used on a regular basis - with atm cards, etc, etc.