RBS Banking Error

[japlah]

On the 13th September my wife went into the RBS at the Westend, Edinburgh to close down a Bonus 30 account, first transferring its funds to another account. The bank instead closed down my wife’s Current Account having transferred more than it had in it to the Bonus 30 account and so put the Current Account into overdraft. As it turned out fortuitously, the Current Account could not actually be fully closed as it was now over drawn.They have agreed that is completely their error and have since confirmed same in writing. After a two hour wait in the bank they told my wife that the problem was still pending and contact them tomorrow

So we did and asked them to correct the error. They oddly said they could not and have persisted with that statement to date. The account is still alive, takes deposits, SO’s, cash withdrawals but cannot deal with DD or support a card. Oh and each day a new statement arrives.

One route is to junk the account but then the actual account number is very very special to my wife. It is the only current account she has had, since 1952, and is made up from her DOB (issued in the days of bank managers with a penchant for the personal touch!)

The bank has clearly failed in its duty of care and to carrying out the clients instructions so is falling foul of the Supply of Goods and Services Act. The FOS has been called upon to help and our expectation is for the bank to undo their gross error and reinstate the full status of the account.

So far they have refused claiming “this is just not possible “but not able or prepared to explain why. Their manager has now written: “I would like to emphasise that we do want to correct our error and put matters right
.” !!!!!

Any thoughts on how to make the bank behave in a more sensible fashion? Or are they being reasonable and acting correctly?

[leclerc]

Re: RBS Banking Error

On the 13th September my wife went into the RBS at the Westend, Edinburgh to close down a Bonus 30 account, first transferring its funds to another account. The bank instead closed down my wife’s Current Account having transferred more than it had in it to the Bonus 30 account and so put the Current Account into overdraft. As it turned out fortuitously, the Current Account could not actually be fully closed as it was now over drawn.They have agreed that is completely their error and have since confirmed same in writing. After a two hour wait in the bank they told my wife that the problem was still pending and contact them tomorrow

So we did and asked them to correct the error. They oddly said they could not and have persisted with that statement to date. The account is still alive, takes deposits, SO’s, cash withdrawals but cannot deal with DD or support a card. Oh and each day a new statement arrives.
Have you put this in writing and asked for a written response plus compensation and inconvenience for not having access to the account. Are you allowed to use the account?
One route is to junk the account but then the actual account number is very very special to my wife. It is the only current account she has had, since 1952, and is made up from her DOB (issued in the days of bank managers with a penchant for the personal touch!)

The bank has clearly failed in its duty of care and to carrying out the clients instructions so is falling foul of the Supply of Goods and Services Act. The FOS has been called upon to help and our expectation is for the bank to undo their gross error and reinstate the full status of the account.
Have you written to the bank and what is their response?
The FOS will pass on their complaint back to the bank if they have not been able to respond to it. You are right in saying that they must redress their error though.
So far they have refused claiming “this is just not possible “but not able or prepared to explain why. Their manager has now written: “I would like to emphasise that we do want to correct our error and put matters right
.” !!!!!

Any thoughts on how to make the bank behave in a more sensible fashion? Or are they being reasonable and acting correctly?

Are they still investigating or have they issued a final response?

[Caspar]

Re: RBS Banking Error

Here's the personal e-mail of the CEO of RBS:

Stephen.Hester@rbs.co.uk

[leclerc]

Re: RBS Banking Error

Here's the personal e-mail of the CEO of RBS:

Stephen.Hester@rbs.co.uk

Which in all likelihood will get a response RBS Group Customer Relations but it will at least move things on hopefully.

[japlah]

Re: RBS Banking Error

Thanks Caspar

We have already emailed Stephen Hester directly (one of the first things we didi) . From that his CS department fired up and a "dedicated" case manager appointed but he is the gentleman that wrote that the RBS did not want to redress the matter. Since my posting we have an email from the RBS confirming they have issued their final response so I'll copy all to FOS and see what might develop.

Regards

John

[japlah]

Re: RBS Banking Error

RBS Banking Error

"Have you put this in writing and asked for a written response plus compensation and inconvenience for not having access to the account. Are you allowed to use the account"

Answer is yes and yes, we can use the account except for card access and DD's. A new card was issued, registered and used with the default new PIN but which was not accepted at the ATM. I conclud that the CS excutive is trying to frustrate the process and have asked us via one of their tellers to zero the account so they can close it. Our intention is to not allow that to happen.......for the present.



"Have you written to the bank and what is their response?
The FOS will pass on their complaint back to the bank if they have not been able to respond to it. You are right in saying that they must redress their error though".

Written three times. Response "can't restore"...."won't restore" makes me wounder if the CS manager had once been entered for a particular cooking program.

Where would it say the RBS must redress their error ?

[Caspar]

Re: RBS Banking Error

I'd scan RBS's confession that it is their fault and send that, along with the case history to the CEO again stating you do not wish to as you've always been happy with their service until now, but if the matter is not resolved this time you will be left with no option but to go to the FOS.

This might get his attention a bit more and you're seen to be being more than reasonable offering them this final chance to rectify things.

[The Debt Star]

Re: RBS Banking Error

That's good advice from Casper there, japlah

[leclerc]

Re: RBS Banking Error

RBS Banking Error

"Have you put this in writing and asked for a written response plus compensation and inconvenience for not having access to the account. Are you allowed to use the account"

Answer is yes and yes, we can use the account except for card access and DD's. A new card was issued, registered and used with the default new PIN but which was not accepted at the ATM. I conclud that the CS excutive is trying to frustrate the process and have asked us via one of their tellers to zero the account so they can close it. Our intention is to not allow that to happen.......for the present.
I don't agree with your summation but I do think that a new pin is required for the card. Do you still have the card?
I would ask RBS to re issue the PIN number and then you go into the branch and try and use the new PIN number issued. You should then be able to change it to another one that you want to use.


"Have you written to the bank and what is their response?
The FOS will pass on their complaint back to the bank if they have not been able to respond to it. You are right in saying that they must redress their error though".

Written three times. Response "can't restore"...."won't restore" makes me wounder if the CS manager had once been entered for a particular cooking program.
Can I clarify what you mean by "restore"? The current issue is that the account is unusable by means of a card so the error is currently on the PIN number. Once that part is concluded then damages can be assessed re inconvenience, time taken etc,etc, caused by a clear BANK ERROR.
Where would it say the RBS must redress their error ?

See above.

[japlah]

Re: RBS Banking Error

Thanks for the support and advise. The intention is to now send off the complete correspondence to the FOS with possibly a copy to the CEO(will check with FOS for any concerns they may have on that front).

One last point : Where does it say that a bank must redress their errors. The lending code refers to corrections being done "quickly" and "sympathetically" and point out that the FSA are the real authority. A court action ? where the RBS was deemed wrong and directed to make good might do it but I don't like feeding solicitors ! Nor can I afford it.

[Caspar]

Re: RBS Banking Error

The RBS's own Customer Charter says they aim to resolve 75% of customer complaints satisfactorily. This strikes me as a very low target.

[leclerc]

Re: RBS Banking Error

Thanks for the support and advise. The intention is to now send off the complete correspondence to the FOS with possibly a copy to the CEO(will check with FOS for any concerns they may have on that front).

One last point : Where does it say that a bank must redress their errors. The lending code refers to corrections being done "quickly" and "sympathetically" and point out that the FSA are the real authority. A court action ? where the RBS was deemed wrong and directed to make good might do it but I don't like feeding solicitors ! Nor can I afford it.

Can we try and resolve the issue: YOU NEED A PIN NUMBER THAT WORKS WITH THE CARD. Apologies for the Caps but seemed the only way to mention the solution. Solve the problem FIRST, then deal with any issue around compensation for a bank error.

[Caspar]

Re: RBS Banking Error

IMO compensation would be so little it probably wouldn't be worth the hassle. Leclerc is right to say resolve the PIN issue hence my suggestion to e-mail CEO again stating as above!

Involving the FOS in my view is likely to slow things down as it will go to them, then back to the bank again.

[japlah]

Re: RBS Banking Error

Further:
While we wait for the FOS to consider the case we went to see our local MP.

He expressed amazement at the RBS response to date and promised to directly contact the CEO and also take it up with some element in the treasury. True to his word he has written to the bank and they responded within two days (thats quick for the RBS!) and the RBS has promised a "full investigation" (they promised this before which resulted in a "nop we do not intend to rectify our error") so we'll see.

We have also complained to the ASA about the RBS current advertising as the bank "Just for you". They have responded but unless I can show we are not alone intend to go no further.

Any suggestions on how to establish how many other folk have had their bank account trashed by the bank ? A youtube campaign ?

anon

[leclerc]

Re: RBS Banking Error

Have you yet to receive a card and pin that works for the account?

Personally, the main issue is that and shouldn't take months to sort out(in fact it should take roughly 2 weeks)