70,000 Nationwide customers to be refunded

70,000 Nationwide customers to be refunded

The Competitions and Markets Authority has ordered Nationwide to refund customers following a breach of overdraft rules.

 

Brean Horne
Fri, 02/07/2020 – 11:33

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Nationwide is to repay customers £900,000 after breaching overdraft rules set out by the Competition and Markets Authority (CMA).

Customers with a personal current account must receive a text alert warning of fees before banks charge them in an unarranged overdraft, under Part 6 of the CMA’s Retail Banking Code.

The rules aim to give people time to take action and avoid paying unexpected overdraft fees.

Although Nationwide did send text alerts, they did not contain a warning that customers would be charged for using an unarranged overdraft.

Around 70,000 customers were affected by the breach.

What happens next?

Nationwide has put an independent auditor in place to review its processes, as directed by the CMA, and has begun refunding its customers.

The refunds paid by the building society cover all fees incurred by customers from going into unarranged overdraft.

It is the second time in six months the CMA has taken action against Nationwide for breaking this order.

In August 2019 Nationwide had to pay a £6 million refund to hundreds of thousands of customers.

Adam Land, senior director of remedies, business and financial analysis at the CMA says: “Banks and building societies that fail to send customers text alerts saying they will be charged if they enter an unarranged overdraft are breaking the rules.

“The fact that Nationwide is a repeat offender makes it even more serious.

“Following our action, it will now repay all affected customers, and quickly.

“This is exactly the sort of issue we would expect to fine companies for in future, if the Government gives us the increased powers we’ve asked for.”

Nationwide say that they are in the process of contacting affected customers and will issue refunds automatically. 

Sara Bennison, chief marketing officer at Nationwide Building Society, says: “The CMA Directions, issued to Nationwide in August 2019, required the Society to complete an independent review of its processes in relation to text alerts.

“While all members received their texts on each and every occasion, this review identified that alerts sent to members who were in Collections did not explicitly state that they would be charged an unarranged overdraft fee.

“While these members haven’t been overcharged, we appreciate these texts are designed to help people avoid unarranged overdraft charges, so we apologise that on this occasion we didn’t meet the high standards we set ourselves.

“We are contacting impacted members and will be automatically refunding the charges back into their account.

“From 11 November 2019, the Society removed unarranged overdraft charges, so this issue will not occur again in the future.”

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Deal of the week: Valentine’s Day deals special

Deal of the week: Valentine’s Day deals special

Valentine’s Day can be expensive, but it does not have to cost you a fortune. Here is a round up of the best Valentine’s Day deals

Stephen Little
Fri, 02/07/2020 – 11:06

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What’s the deal exactly?

Flowers

One of the biggest romantic gestures you can make on Valentine’s Day is to send flowers.

Marks and Spencer is selling a dozen red roses for £20. The stem length is £50cm and delivery is free.

The cheapest roses at Waitrose start at £25 for a dozen, going all the way up to £100 for a luxury bouquet.

If you are looking for something a little bit cheaper, Tesco has a traditional bouquet of 12 short-stem red roses at £5, available from 10 February.

Asda also has lots of different offers, with a bunch of roses starting from £2.

Eating in

Going out to a restaurant can be expensive, so how about staying in for a romantic evening?

Marks and Spencer has a delicious three-course meal for just £20. You can choose from any starter, main, side, dessert and wine. The offer runs from 10-14 February

Tesco’s three course Valentine’s Day meal gives you the choice of a starter, two mains, a dessert and a drink, all for just £20.

The deal is made up of 27 products, which allows you to choose from more than 15,000 combinations.

Starters include salmon and watercress tart filled with a crème fraiche and creamy cheddar cheese sauce, while the mains include chicken in champagne sauce and lamb shank and roasted vegetables.

Morrison’s is offering shoppers a three-course Valentine’s Day meal with a bottle of wine or Prosecco for £15 from 10 to 16 February.

Asda has a £15 meal which includes a starter, main, two sides, dessert and a drink, running until 16 February.

Restaurants

Pizza Express – Three course set menu for two people for £28.95 on 14 and 15 February only. Example menu – garlic dough balls, American pepperoni pizza and a glass of Prosecco.

Carluccio’s – Three courses from its special Valentine’s Day menu for £24.95, available from Wednesday 12 February to Sunday 16 February. Example menu – chicken breast in prosciutto, ricotta and spinach ravioli, crab and langoustine fettucce, and rhubarb panna cotta.

Prezzo – Two courses for £16.50 or three courses for £19.50. Available from Thursday 13 February until Sunday 16 February. Example menu – grilled chicken breast with mushrooms, goat’s cheese and red pepper pizza and honeycomb smash cheesecake.

Zizzi – Get three courses from its special Valentine’s Day menu for £21.95 per person, available from Thursday 13 February until Sunday 16 February. Example menu – tortellini filled with pumpkin, chicken breast with sage, and passion fruit cheesecake.

Why should I care?

Valentine’s Day can be an expensive business, so it is always wise to take advantage of any discounts.

What’s the catch?

If you are going out for a meal or eating in, you will be limited by the options on the set menu.

What other options do I have?

Have a look round your local restaurants as they might be running a special Valentine’s Day deal.

You can also read the weekly updated Moneywise Cheap Eats guide to see the best restaurant offers which are unrelated to Valentine’s Day.

Where can I find out more?

You can find more information about the deals on the Marks and Spencer, Tesco, Asda, and Waitrose websites.

For more information about Carluccio’s, Pizza Express, Prezzo and Zizzi go to their websites.

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