KBC withholding deposit account funds

[lesanges]

I opened a 12 month term deposit account with KBC in March 2017. Due to moving house etc I didn't receive any notification from them about my account - (I fully accept of course that it is my responsibility to contact the bank and inform them of my new address.) In any case, this meant that I didn't receive a letter from KBC when the end of the 12 month term was approaching.

I rang KBC in around early/mid April as I wanted to check the balance on my deposit account as I want to move it to a better investment. To my horror I was told by the bank that as I had not contacted them prior to the end of the initial 12 months then they rolled my account over on the same basis for a further 12 months - ie. KBC have locked up my money for a further 12 months.

Apparently the letter which was sent to my old address gave the instruction that I must select what to do on the end of the term, failing which they would lock it into a further 12 month term. I was aware around March/April that the 12 month end of term was approaching and I knew I needed to do something about it, but I assumed, rather foolishly that the account would just sit on a very low rate until I instructed otherwise. I would have assumed you would have to specifically 'opt-in' to a further term. However, in this case, the bank is using an 'opt-out' clause. Of course they tell me that it was in the small print, and so it is my own fault. I accept this, but is this not sharp practice on the part of the bank. Can anything be done about it? Should I complain to the Consumer Ombudsman or the Financial Ombudsman? The bank apparently will release my money at their discretion, ie if they decide that my reasons for needing my own money are good enough for them!! I am pretty annoyed at this situation. Has anyone experience of anything similar? I really want to get my money back (it is quite a substantial amount), and why should I have to tell the bank what I want to do with it!!

 

[Lightning]

It is very normal for a bank to role a term deposit as a default instruction if no instruction is received.

I totally agree that the default instruction should not be the role without a fresh instruction. The default instruction should be to move the money to an instant access account.

I don't know if complaining will succeed given how common the practice is.

 

[BigBoots82]

I would be outraged by this. Have they never heard of picking up the phone? They are quick enough to pick up the phone when it suits them

 

[Gordon Gekko]

It sounds like they’ll give you the money anyway, so is it not a case of unnecessary outrage?

Leaving things “as is” when faced with an absent customer seems like a reasonable approach to me, especially if they’ve what sounds like an “Irish” policy of releasing the money if given a reason to do so. I would have thought that “I had moved house and never received the letter” would qualify as an appropriate reason.

 

[Monbretia]

And then you have the other side where the customer contacts 6 months later and goes mad because the money has been sitting in a deposit account earning nothing! Lesson here is read your conditions in the beginning and contact them when you change address, fault seems to be pretty much on your side here I'm afraid.

Just tell them you want it for house renovations or whatever, they don't really care what you want it for either but just need something to note on file as the justification for releasing you from your contract.

 

[Jim2007]

I would be outraged by this. Have they never heard of picking up the phone? They are quick enough to pick up the phone when it suits them

You are outraged because the bank followed the agreed process.... do you seriously thing the bank can afford to have people sitting around checking on you and reminding you by phone when you forget???

In the real world we assume that adults are capable of managing their own affairs, that means that if you choose not to familiarize yourself with the details of a contract and fail to comply then it is entirely your problem. It would be impossible to conduct our affairs if we made the other party to a contract responsible for ensuring our competence to enter the contract.