We’ll be updating the cahoot general and product specific terms and conditions to reflect new regulations and some changes to our services. Nothing is changing immediately; unless we say otherwise, the changes will happen by 6 April or 5 May 2020.
Summary of changes
1. From 6 April 2020, a single, variable interest rate of 9.4% APR*/EAR** (variable) will be applied on any arranged overdraft you use. The £100 fee-free or interest-free buffer is being removed, so all of an arranged overdraft will be charged at the new rate. We are also removing all unarranged overdraft fees and charges. The fee for refusing a payment due to lack of funds will not be charged on any transactions from 10 December 2019.
2. We’re also taking the opportunity to let you know about some changes to services and cahoot general and product specific terms from 5 May 2020. This includes an increase in the foreign currency conversion fee from 2.25% to 2.95% and confirming that a number of other foreign transaction fees have already been removed.
The changes we're making
Interest and fees on Sundays and Christmas Day: We use your account balance to calculate any debit or credit interest applicable to your account. Currently any transactions made on a Saturday or a Bank Holiday (except Christmas Day) are processed the same day but some deposits or withdrawals made on a Sunday or Christmas Day aren’t processed for credit or debit interest until the next working day. From 5 May 2020 deposits or withdrawals made on any day that a transaction is processed will be treated as received that day. This means any applicable credit or debit interest will be applied on a Sunday or Christmas Day, if the transaction is processed on that day.
Change to foreign currency conversion fee for cash withdrawals and debit card payments: The conversion fee for cash withdrawals and debit card payments in a foreign currency will change to 2.95% of the value, currently 2.25%. The following foreign transaction fees were removed on 10 December 2019.
• Cash withdrawal fee (including cash machines, purchase of travellers’ cheques or foreign currency at another bank, bureau de change or other outlet displaying the Visa or Mastercard sign abroad), previously 1.50% on each transaction.
• Single Euro Payments Area (SEPA) - non-urgent euro transfer, previously £15.00 (no card needed).
Foreign currency cheques: We’re adding the previously separate foreign currency cheque deposit terms and conditions into the cahoot general and product specific terms and conditions so you can find all the terms and conditions related to foreign currency transactions in one place.
Foreign currency transactions: We’re also updating the CHAPS, EEA and International Payments terms and conditions to clarify the cut-off times for these payment types. Where you request to pay any third-party correspondent banking charges on an international payment (those made anywhere in the world outside of the EEA), we will debit your account with these charges immediately after we have received them from other banks. Please note we have no control over the correspondent bank charges that are levied by third party banks.
Foreign currency card payments and cash withdrawals: When you make a card payment or cash withdrawal in a foreign currency, it:
• will be converted into pounds using the Visa or Mastercard exchange rate as at the date we receive the payment instruction to debit your account (which may not be on the same day that you authorised the payment);
• may incur a cahoot commission fee based on the amount of the transaction we receive in a foreign currency to convert to sterling; and
• may incur commission fees imposed by the retailer or bank that carries out the card payment or cash withdrawal if you select for them to carry out the conversion from the local currency to sterling.
We will send you regulatory alerts we are required to when you make a card payment or cash withdrawal overseas.
Paying cheques into your account: We’re updating the cheque clearance timescales following the introduction of the new cheque imaging process across UK Banks and Building Societies. We’re also clarifying that cheques paid into your account via the Post Office or through the post will take longer to reach us and including guidance on what you should do if you want to pay in a cheque which has expired, been cancelled, or declined.
Paying money in and automatic payments, like Debit Debits and standing orders: We’re clarifying the cut-off time for you to put money into your account to ensure you avoid or reduce overdraft charges each day. If your account is using an overdraft you have until 8pm to bring your account into credit to avoid charges for that day. We’ve also amended our terms to clarify that automatic payments are taken from your account at the beginning of the working day they are due. This means that if you don’t have available money in your account at this time, we will try to make the payment again later that afternoon (and for standing orders, again in the afternoon of the following working day). To ensure the payment is made, you will need to move enough money into your account or have an arranged overdraft sufficient to cover the payment, before 4pm (or 4pm the next working day for standing orders).
Confirmation of Payee: When sending money to accounts in the UK you will now need to provide us with the exact name of the person you want to pay, along with the account number, sort code and type (business or personal).
Making changes to Terms and Conditions in the future: We’re clarifying our ability to make future changes to your agreement. We’ve given more detail around the types of changes that we might make and some examples of when we might make them. Also, as you may hold an account with us for a long time, we can’t anticipate everything that might happen over this period. This means we may also need to make other changes to your agreement with us for other reasons not included.
Helping protect you from fraudsters: Earlier in the year we signed up to an industry code of good practice to help better protect our customers’ accounts and reduce the occurrence of authorised push payment (APP) fraud. Scams involving APPs occur when you authorise a payment to an account that you believe belongs to a legitimate payee – but which is, in fact, controlled by a fraudster. In the future, once you have told us that you believe you have been subject to an APP scam, we will look into this and apply industry standards to determine whether you are entitled to a full or partial refund. We will usually let you know within 15 working days after the day you told us about it, although this might take longer in exceptional circumstances. Any refund will be given to you without undue delay. Please note that we will not refund you if we find that you should have known that you were sending money to a fraudster – although we will always take circumstances into consideration.
Third Party Payment Providers (TPPs): TPPs can only access your online accounts with your permission and where these are payment accounts e.g. a current account and some savings accounts. If you ever withdraw your consent to allow a TPP access to your account, we will tell the TPP that you have done this.
Complaints: Our terms and conditions are being updated to reflect that if you don’t think we are meeting our legal obligations under the Payment Services Regulations 2017, you are able to complain to the FCA. For more information, visit fca.org.uk/consumers/how-complain/submit-information-payment-services-e-money-firm
Joint accounts: We’d normally ask for permission from both account holders on a joint account to remove an account holder. There may be certain circumstances in the future, that we do this without permission from both customers. For example, where there is a marital dispute or estranged relationships.
Data Protection Statement: We’re updating the Data Protection statement to clarify that you must provide your personal data if we are to process an application, even if you are an existing customer and we already hold your details. We have also made some changes to make the Data Protection Statement easier to understand.
Who our agreement is with: We’ve amended the definition of ‘you’ in the terms of your account to make it clear that the agreement is between ourselves and you, or anyone you’ve chosen and agreed can act on your behalf, such as under a power of attorney.