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We got charged a penalty fee when my mother passed away, wiping out her savings
Since my father died several years ago I have been managing my mother's financial affairs. All her savings were with Nationwide whose rules do not allow me to have authority to manage her account.
Instead, it suggested changing the account into our joint names. We put a substantial amount on a fixed-interest time deposit, knowing early termination penalties do not apply on death.
Last January, my mother died and I am her executor. I was shocked to discover that Nationwide had charged a 365-day interest penalty, which wiped out more than £5,000 of interest, leaving only £143.
The probate unit said that, as the account was now in my sole name, my mother's death was disregarded. If the account had been in her sole name, it would not. AH, Surbiton
Someone with a better understanding of Nationwide's procedures confirms that it should not have charged a penalty on your mother's death. It has repaid you £7,195, which is the money wrongly deducted plus interest. To apologise, Nationwide has added £250 in compensation.
You can email Margaret Dibben at your.problems@observer.co.uk or write to Margaret Dibben, Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU and include a telephone number. Do not enclose SAEs or original documents. The newspaper accepts no legal responsibility for advice.
Margaret Dibben
guardian.co.uk © Guardian News & Media Limited 2011 | Use of this content is subject to our Terms & Conditions | More Feeds
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We got charged a penalty fee when my mother passed away, wiping out her savings
Since my father died several years ago I have been managing my mother's financial affairs. All her savings were with Nationwide whose rules do not allow me to have authority to manage her account.
Instead, it suggested changing the account into our joint names. We put a substantial amount on a fixed-interest time deposit, knowing early termination penalties do not apply on death.
Last January, my mother died and I am her executor. I was shocked to discover that Nationwide had charged a 365-day interest penalty, which wiped out more than £5,000 of interest, leaving only £143.
The probate unit said that, as the account was now in my sole name, my mother's death was disregarded. If the account had been in her sole name, it would not. AH, Surbiton
Someone with a better understanding of Nationwide's procedures confirms that it should not have charged a penalty on your mother's death. It has repaid you £7,195, which is the money wrongly deducted plus interest. To apologise, Nationwide has added £250 in compensation.
You can email Margaret Dibben at your.problems@observer.co.uk or write to Margaret Dibben, Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU and include a telephone number. Do not enclose SAEs or original documents. The newspaper accepts no legal responsibility for advice.
Margaret Dibben
guardian.co.uk © Guardian News & Media Limited 2011 | Use of this content is subject to our Terms & Conditions | More Feeds
More...