Introduction                   

1. Summaries

1.1 One Paragraph

1.2 One Page

 

2. Family History

2.1 Parents

2.2 As a boy

2.3 Death in family

 

3. Demutualisation

3.1 Share offers

3.2 Halifax advice

3.3 Application

3.4 Stonewalling

3.5 Rejection

 

4. Appeal

4.1 Letters

4.2 Court Case

4.3 1999 AGM

4.4 2000 AGM

4.5 Case Review

4.6 Conclusion

 

5. Other Sites

5.1 UNHAV

5.2 ASA Complaints

5.3 FSO

5.4 Other Sites 

 

6. Press

6.1 Daily Telegraph

6.2 The Express

6.3 The Times

6.4 Other

 

7. Halifax/HBOS

7.1 About HBOS   

7.2 Group Sites

7.3 Personnel

7.4 Halifax Virus

7.5 Other

Halifax / HBOS Demutualisation Experience and Dispute

 

5. Other Sites

5.2 Advertising Standards Authority

The ASA is the independent, self-regulatory body for non-broadcast advertisements in the UK. They administer the British Codes of Advertising and Sales Promotion to ensure that ads are legal, decent, honest and truthful. The ASA web site is here at http://www.asa.org.uk

The ASA receive complaints from members of the public, review the facts, and reach a conclusion which is published as an adjudication. The follow adjudications have been upheld against the Halifax Group or HBOS Group:

You can go directly to these details by clicking on the items below, so far we have these adjudications against the Halifax and now HBOS plc. I was a complainant for item 4.

1. Mortgage Tie-Ins (13 January 1999)

2. Car Insurance (8 March 2000)

3. Mortgages (13 June 2001)

4. Bank Interest Rates (14 February 2001)

5. Halifax "Chop Loan Costs" (28 February 2001)

6. Halifax Health Insurance (15 August 2001)

7. Halifax plc Credit Card Promotion (11 September 2002)

8. eSure (part of HBOS Group) - Car Insurance (25 September 2002)

9. Halifax plc t/a Intelligent Finance "No 1 Bank" (13 November 2002)

10. HBOS plc trading as Halifax plc - Interest Rates (19 Feb 2003)

11. Halifax plc t/a Intelligent Finance - Interest Rates (5 March 2003)

1. Mortgage Tie-Ins (13 January 1999)

Complaint

Objection to a regional press advertisement, for fixed rate mortgages. It stated "Looking for a fixed rate mortgage as low as 4.95% 5.3% APR?...The Halifax offers a new range of mortgage deals with fixed rates for 2, 3 and 5 years..." The complainant, who understood that there was a three year tie-in period after the fixed rate expired or a penalty, believed the advertisement was misleading by omission.

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2. Car Insurance (8 March 2000)

Complaint

Objection to a direct mailing that was headlined "More Cover For Less Cash With Halifax Car Insurance" and stated "Why pay fancy prices for your car insurance when you get more cover and better service for less cash from us? At Halifax Car Insurance we guarantee you'll get a policy that suits you and your pocket..." The complainant objected that the advertisement was misleading because the advertisers quoted £2,717 to insure his car whereas a local insurer quoted £761.

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3. Mortgages (13 June 2001)

Complaint

The member of the public objected to the claim "At the heart of this outstanding package is our new variable interest rate: just 6.75% 7.1% APR. And it's here to stay", because he believed it was ambiguous.

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4. Bank Interest Rates (14 February 2001)

Complaint

This is a complaint I registered with the ASA and full details of this complaint and copies of correspondence are held here: http://www.redoak.co.uk/hphalasa.html

Objections to three advertisements for a bank.

a) One advertisement was headlined "INTELLIGENT FINANCE IS THE ONLY BANK THAT WILL PAY YOU A MASSIVE 10.8% AER/GROSS* ON YOUR CURRENT ACCOUNT." The advertisement featured a picture of two people driving a van and carried the caption "NOW WE'RE MOTORING". The body copy stated "You should have your current account with Intelligent Finance. Why? Well our basic rate on current accounts is 5% AER/GROSS, but if you also have an Intelligent Finance credit card, you could earn a massive 10.8% AER/GROSS on your current account. Intelligent Finance is the only bank which makes any combination of banking products work together, in a way that suits you, to make you better off...". The footnote stated "*We give you the choice of maximising the interest you receive or minimising the interest you pay us. If you choose to earn 10.8% AER/GROSS on your current account you will still pay 10.8% on your outstanding credit card balance...".

b) Another advertisement was headlined "INTELLIGENT FINANCE IS THE ONLY BANK THAT WILL PAY YOU A MASSIVE 10.8% AER/GROSS* ON YOUR SAVINGS". The advertisement featured a picture of a woman on the phone and carried the caption "WHEN IT COMES TO MY SAVINGS, SIZE DOES MATTER." The body copy stated "You should be banking with Intelligent Finance. Why? Not only do we offer the full range of banking products but we are the only bank to make any combination of them work together, in a way that suits you, to make you better off. For example, when you have savings and a credit card with Intelligent Finance, your savings could earn a massive 10.8% AER/GROSS." The footnote stated "We give you the choice of maximising the interest you receive or minimising the interest you pay us. If you choose to earn 10.8% AER/GROSS on your savings you will still pay 10.8% on your outstanding credit card balance...".

c) The third advertisement was headlined "INTELLIGENT FINANCE IS THE ONLY BANK WHERE YOU CAN GET A PERSONAL LOAN AND PAY NO INTEREST*". It featured a picture of a man on a mobile phone saying "WHERE DO I SIGN?" The body copy of the advertisement stated "Strange but true. If you had an unsecured personal loan of £3,000 with Intelligent Finance and a total of £3,000 in your Intelligent Finance savings and/or current account, you could pay no interest on your personal loan. Intelligent Finance is the only bank that offers this. At Intelligent Finance not only do we offer you the full range of banking products but we also make them work together, in a way that suits you, to make you better off. Sounds good?..". A separate section of the advertisement showed the figure 10.5% APR with an arrow below pointing to 0% APR. The footnote stated "We give you the choice of maximising the interest you receive or minimising the interest you pay us. If you choose to have 0% APR on all or part of your outstanding personal loan balance, we will not pay interest on a corresponding part of your current account or savings...". The complainants objected that:

1. advertisement (a) was misleading, because the headline claim was contradicted by the significant conditions that to obtain 10.8% AER/gross consumers had to have both a credit card with the advertisers and a current account balance equal to their credit card balance;

2. advertisement (b) was misleading, because the headline claim was contradicted by the significant conditions that to take advantage of the offer consumers had to have a credit card with the advertisers and a savings balance equal to their credit card balance; and

3. advertisement (c) was misleading, because it implied that the interest rate on the loan fell from 10.5% to 0%. The complainant challenged that implication because consumers would forfeit the interest normally awarded on a bank account and their interest rate would not therefore fall by the advertised amount.

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5. Halifax "Chop Loan Costs" (28 February 2001)

Complaint

An objection was made by from Edinburgh Trading Standards department, to a regional press advertisement for a personal loan. The advertisement was headlined "CHALLENGE US TO CHOP YOUR MONTHLY LOAN COSTS." The advertisement featured a table that was headlined "Cost of £10,000 personal loan over 5 years" and listed five banks, including the Halifax, and stated the APR on personal loans, the monthly payment, the additional monthly cost, the total amount payable and the additional total cost; the Halifax's APR and total amount payable were the lowest.

The Advertising Standards Authority noted that to take advantage of the advertised offer consumers had to have a mortgage, savings account and a credit card or current account with the advertisers and that the savings, credit card and current account had to have been open for at least 6 months. This condition was not a prerequisite for the other organisations whose rates were compared and so the comparison was deemed unfair and so the complaint was upheld.

The Authority concluded that the comparison was not fair. It asked the advertisers not to use similar comparisons in future advertisements.

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6. Halifax Health Insurance (15 August 2001)

Complaint

Western Provident Association (WPA) objected to a direct mailing for private medical insurance. The letter stated "Dear Mr X If you thought you couldn't afford private medical insurance think again. Halifax Low Cost Medical Insurance costs around half the price of typical private medical insurance ... How can Halifax make it so cheap? Halifax Low Cost Medical Insurance costs less because it recognises the strengths of the NHS. You'll still rely on the NHS for excellent and immediate treatment if you have an accident or face a life threatening condition. But where you might have to wait for certain treatments, Halifax Low Cost Medical Insurance will cover the cost of quicker treatment ... ". The mailing included a leaflet that gave full details of the advertised insurance. It stated "Halifax Low Cost Medical Insurance. The treatment you need, when you want it. For around half the cost you may have seen before". The leaflet featured a comparison table and stated "We're cheaper than the rest ... Person Aged 35 ... Halifax Low Cost Medical Insurance £16, PPP Key Plan £33.00, BUPA Hospital Care* £30.00, WPA Poplar* £25.00 ... *All premiums have been rounded to the nearest whole £ and are for attained age (like for like) ... Quotations may vary based on location and status and are for illustration purposes only ...". The complainants, whose Poplar Policy covered all types of illness and conditions and allowed a free choice of hospitals, objected to the leaflet because the advertisers' insurance covered only 113 elective conditions and restricted policyholders to a limited number of hospitals. They believed the leaflet did not compare like with like.

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7. Halifax plc Credit Card Promotion (11 September 2002)

Complaint

An objection was made to an advertising letter and leaflet that explained that credit card balance transfers would be performed at 0%PA interest. By illustration, the leaflet identified 0% interest for six months.

The complainants, who transferred a balance into the advertisers' credit card account but found that subsequent repayments they made against purchases were deducted firstly from that balance and the amount of their promotional free credit correspondingly reduced or eliminated, objected that the promotion was misleading. What had happened was that when a customer spent say £100 after the balance transfer and then paid off that £100, Halifax used that £100 to pay off the interest free element and charged the customer interest on the newly spent £100.

The Advertising Standards Authority upheld the complaint and concluded that the mailing was misleading and asked the advertisers not to repeat the approach. It advised them to consult the Committee of Advertising Practice Copy Advice team before they advertised again.

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8. eSure (part of HBOS Group) - Car Insurance (25 September 2002)

Complaint

Objections to two national press advertisements and a mailing for car insurance. The first press advertisement stated "Cheaper Car Insurance If you've been claim free for 4 years ...". The second press advertisement stated "4 Years No Claim Bonus = Cheaper Car Insurance ...". At the top of the advertisements, the smallprint stated "... Subject to normal underwriting criteria ...". The mailing claimed "... Our aim is simple - to reward good drivers, who help make our roads safer, with lower premiums. We can do this because we only insure drivers who've been claim-free for 4 years, which means our customers benefit from savings of up to 30% on their current premiums ...". The complainants, who believed the advertisers did not insure drivers for all vehicles, challenged the claims that the advertisers would provide cheaper car insurance if respondents had made no claims for four years.

Complaint upheld

Because the advertisers would not always offer cheaper car insurance to drivers who had been claim-free for 4 years, the Authority asked the advertisers to amend future advertisements with help from the Committee of Advertising Practice Copy Advice team.

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9. Halifax plc t/a Intelligent Finance "No 1 Bank" (13 November 2002)

Complaint

The complainant objected to an advertisement, for Intelligent Finance, headlined "NOW THE No1 DIRECT BANK IN THE UK ... And in just 18 short months look what we've achieved together. We've become one of the UK's largest net mortgage lenders with more than 10% market share and over 500,000 accounts have been opened with us ...". Because they believed the advertisers were not the largest net mortgage lender and did not have the most accounts, the complainants challenged the headline claim.

The basis of the complaint was that selective, unrepresentative comparisons were made that would misinform the readers.

The Advertising Standards Authority upheld the complaint and concluded that the comparison was not clear and fair and asked the advertisers not to repeat the claim unless they held documentary evidence to prove it and had ensured that the elements of the comparison were not selected in a way that gave them an artificial advantage.

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10. HBOS plc trading as Halifax plc - Interest Rates (19 Feb 2003)

Complaint

Objection to a direct mailing that was headed "Get ready for Christmas - with Halifax Credit Card Cheques" and claimed "There's so much to think about when Christmas is round the corner. And with all the expense it's often useful to be able to pay for goods and services on credit when credit cards wouldn't usually be accepted. So we've attached these Halifax Credit Card Cheques, to make things a bit easier ... The convenience you need - at no extra cost ...". A shaded box at the side of the letter, headed "Credit Card Cheques are really simple to use", claimed "... you'll be charged interest at the usual monthly rate for cheques from the date we add it to your account". The complainant understood that cardholders, who were given seven weeks interest-free credit on payments made with the credit card, would be charged interest on payments made with the cheques from the day the payment was added to the account. The complainant objected that the mailing misleadingly implied that cardholders could pay with a credit card cheque as though they were paying with a credit card and that, because it was printed in white on a grey background, readers were likely to overlook the claim "you'll be charged interest at the usual monthly rate for cheques from the date we add it to your account".

Complaint Upheld

The Authority asked the advertisers to ensure future advertisements did not contain contradictory claims and to ensure that important conditions were not likely to be overlooked. It welcomed the advertisers' assurance that they would try to avoid text designs that might make advertisements hard to read.

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11. Halifax plc t/a Intelligent Finance - Interest Rates (5 March 2003)

Complaint

Virgin Direct objected to a national press advertisement for a bank account. It stated "I MADE AN EXCELLENT DECISION BY MOVING FROM VIRGIN ONE TO INTELLIGENT FINANCE ... I used to keep all my money together in one account at Virgin One. But I didn't feel comfortable or in control. So I visited If.com, liked what I saw and decided to give it a go. I really wanted to keep things separate and I thought the Intelligent Finance plan made a lot of sense. Now I've got a current account, mortgage, savings and a personal loan all with Intelligent Finance. It's so simple, my money is kept separate but Intelligent Finance link what I have with what I borrow ... ". Under the heading "INTELLIGENT FINANCE MORTGAGE AT A GLANCE" the advertisement listed the benefits of the bank account, including "By offsetting with an Intelligent Finance savings/current account you could reduce the cost of your mortgage". The complainants, who believed the advertisement misleadingly implied that the benefits of off-setting were not available to Virgin One customers, objected that the advertisement implied that, because of the structural differences between the accounts, customers would be financially better off if they switched from the Virgin One account to the Intelligent Finance Plan.

Complaint upheld

The advertisers believed the advertisement did not imply that the benefits of offsetting were not available to Virgin One customers

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And I am sure there are more

Page created on 10 March 2002, last updated: 22 October 2006 23:19
 

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