You're not quite off the hook yet, Santander

After our action group had a win over Santander in their attempt to hoodwink us on Business Banking charges, you'd think I'd be done with beating them up for a while.

Not so.  From tomorrow, they intend to inflict more pain on 400,000 mortgage customers by increasing their standard variable rate ('SVR') by half a percent to 4.74%.  Oh, and yet again, they've reneged on a promise - that the SVR will be never be more than 3.75 percentage points above the Bank Rate - by raising the cap.  The words 'guarantee' and 'promise' obviously don't translate well into Spanish.

Their reason?  They say 'the cost of providing mortgages has risen over the past three years'.  And why?  Because of the 'need to meet tighter regulatory demands, which in part require them to build up a bigger capital buffer'.

The irony is killing.  Why has governance made organisations such as these so top heavy cost-wise in the first place?  Because they couldn't be trusted to give their clients a fair deal on their own.  You can you imagine the contempt they must have held for investors and borrowers alike, to have to be TOLD to treat them fairly - isn't the first rule of business to build trust and goodwill with your customers if you want them to come back?

Coming from the days when retail banking was a profession I proudly represented as a regional manager in Australia, I've now become totally disillusioned with the banks.  Instead of putting service first, they bombard us with reams of the small print that we all fought to eliminate a few decades ago (whatever became of the 'Crystal Mark'?), in which they disguise strategies deliberately calculated to catch us all out at some time or another - just ask any small investor who, perversely, has to change banks every year if they want to avoid an automatic rollover offering only fractions of a percent.  As BBC Watchdog pointed out, they actually rely on us not to check the anniversary of our investments in the hope that we don't notice.  Not to mention their heavy sales techniques (driven by target not need, as evidenced by recent mis-selling scandals).

Now, I can't understand why the banks aren't making money.  Back in 'my day', banks and building societies could lend out around ten times the amount they held on deposit, on the basis that not everyone would want to draw on their investments at the same time.  So why, when the investments they're offering paltry returns on can generate multiple parcels of borrowing at a higher rate, are they crying poor?  Could it be something to do with needing to replenish the coffers of the investment arms they so irresponsibly decimated? - and which they are now so reluctant to separate from their high street business?

Make no mistake - Joe Average is paying for 'The 1%' to shaft him again and again.  Someone pass the KY.

When does 'Free Banking Forever' mean at least £7.50 mth?

We seem to have a new bank mis-selling scandal on the horizon.

We received a letter today stating that Santander will start charging on a "Free Business Banking Forever" account we opened back in 2003.

Marketeers seem to have a problem with vocabulary - like internet providers and mobile companies' interpretation of the word 'unlimited'!

 
Don't let them get away with it - I have the evidence in black and white from when we opened the account - call Santander on 0845 606 1721 and lodge a telephone complaint. We’ll be taking it up with the Financial Ombudsman if they don't back down. Enough complaints will hopefully force a re-think, although the Financial Services Authority’s (‘FSA’) Lord Turner has ruled that free banking has to end as it “stifles competition”.  Really?  Is free not competitive?

If we can’t win against the FSA, then perhaps class action is called for through the courts.

Who's with me?

[Would also refer you to this Facebook group - not set up by me]

[Tell BBC's Watchdog about it here - choose 'Finance' in the drop-down box or Rip Off Britain here]

Petition here. 

ANOTHER broken pledge (this time on mortgage rates) here.

... and did you know the sort code of their business accounts ends in '666'? I just put that in for mischief - I don't actually believe they are: ... (look closely at the logo) ....

 
Update 23 Aug 12: Just spoke to Ralph Tetlow (Santander Exec Complaint Team Manager - Tel: 01908 934552) to give him a right of reply before escalating my complaint to FOS. I said their written response did not address why they don't think they mis-sold - only to say they were sorry I felt they had. He insists their Legal department says the changes are in accordance with the T&C's.  I imagine, though, that Legal have looked at these in isolation and not in the context of the marketing campaign used to promote the product. Keep the pressure on them - call him, join the FB groups, go to Watchdog, Tweet like there's no tomorrow!!!

Update 6 Sep 12: RESULT!!! Santander have backed off - Reported in HuffPost here. 

Indie Authors - Separating the Wheat from the Chaff

The world of books is changing.  The recession has seen publishing houses less willing to take a punt on new authors and instead choosing to stick with established names or prostituting themselves with the latest celebrity offerings.

No wonder so many writers are turning indie as, with the advent of Kindle and 'Print on Demand' tools, they're able to reach a vast audience without having to relinquish a slice of their income to either the publishers themselves or the increasingly irrelevant agents the industry still insists on using as go-betweens.

But the downside of this ease of DIY publishing is that the market is becoming flooded with dross, making it more difficult for real talent to rise to the surface.  Quality is being stifled by the sheer weight of titles a potential buyer has to trawl through, often leading to disappointment in the choices they make.

A case in point - this British chicklit author's three books all carry 5*star ratings/reviews but are currently languishing in Amazon bookstore's mid-division amidst a tide of free or have-a-go wannabe titles, due to Amazon's woefully inadequate classification system - amateur pornography sits incongruously next to legitimate romance novels and Amazon doesn't even have anything as straightforward as a 'chicklit' category.

So, while I can't offer advice on how to find that shiny needle in the Amazon haystack, I can at least offer you some tips on how to differentiate the good from the bad and the downright ugly before you commit to making a purchase you might regret:

- Try before you buy.  Most titles on Amazon will give you access to a preview by allowing you to click on the book icon to 'Look Inside'.

- Establish the writer's pedigree.  Look at their star rating, reviews and if they have more than one book in the stable or whether they're just one trick ponies (that said, all writers need to start somewhere, so don't be too dismissive of a debut novel).

- Use social media tools like Twitter or Facebook, or book forums, to seek recommendations from friends or like-minded readers.

- Look for writers with a coherent marketing strategy and read their blogs and web pages to get a further insight of the personality behind the book.

Happy reading!

Please feel free to comment or add your own suggestions.

Praise for the Spirit of Youth

I can't believe I'm hearing myself saying this, but last night's 'Britain's Got Talent' (apart from the sideshow acts) left me emotional and inspired.

While politicians and bankers have been playing self-interested games with people's lives, two acts in particular - 'Only Boys Aloud' and 'Jonathan & Charlotte' - magnificently dispelled the much-held belief that the youth of today is becoming increasingly disaffected or downtrodden.

I'm not ashamed to say I shed a tear watching them sing their guts out in the face of the mess that short-termist opportunists and strategists have made of their generation's prospects.

They've been so badly let down, but last night I caught a glimpse of a future with hope.

The Banks have their heads in the Trough again while ours are in the Sand

Despite the Base Rate holding at 0.5%, we have a swathe of banks lining up to increase their lending rates.

Lets just remind ourselves that they mugged us once already and, like the gamblers they are - or addicts chasing the dragon for that next buzz - they're back cap in hand to gullible Aunty Public hoping to recoup their losses.  Never mind that they've written off billions to countries on the brink of bankruptcy - who, ironically, borrowed at rates far cheaper than you or I can negotiate due to their 'sound' credit rating!

Or maybe they're just looking for ways to fund the compensation they're having to fork out for the PPI they also mis-sold us.

Bend over again, everyone - this might hurt a little. It wouldn't be British to complain, but we can all look on and tut.