Ask Matthew

Your questions answered

• We have an over 50s account with you, which is our life savings. With news of another building society in trouble today, could you please tell us how safe our money is with the Nowich and Peterborough?   Ms S from Boston
  
  We have an over 50s account with you, which is our life savings. With news of another building society in trouble today, could you please tell us how safe our money is with the Nowich and Peterborough?
  
  Thank you for your email. I hope that I can make you feel comfortable that your money is safe with Norwich & Peterborough.
  
  The Society has no exposure to the American sub-prime market, either directly or indirectly. We have a low reliance on the wholesale markets which we use only for the financing of liquidity. We are currently finalising our year-end accounts but we anticipate that the level of day-to-day liquidity will be in the region of 24%-25%. We have a very strong capital position with a Tier 1 ratio of over 10% and one of only a handful of organisations rated by the FSA in the top group of risk managers. We will shortly be announcing strong results following an outstanding 2007.
  
  If you want a more technical "chapter and verse" description of the Society's financial strength, You may want to read the recent opinion on Norwich & Peterborough prepared by Moodys Credit Agency in October 2007. It is, however, not entirely "bed-side reading". For a summary of Moody's findings, please click here.
  
  Ultimately, if you want to benefit from a full Government guarantee for your savings, the only way that you can achieve this is by spreading your deposits across several institutions up to the limit of the Financial Services Compensation Scheme guarantee of £35,000. This figure may shortly be increased by the Treasury.

  
  Regards,
  
  Matthew Bullock

• I would like to put a small amount away for my grandson each month, but not a regular amount. I do most of my banking on-line. How can I do this?   Mr C
  
  My Grandson has a Head Start account with you, he is only 2 in March. I would like to put a small amount away for him each month, but not into a regular amount. I do most of my banking on-line. How can I do this? I have English and Spanish current accounts and spend my life wherever the weather is best.
  
  Mr Bullock is currently away from the office, so I hope you do not mind me responding on his behalf.
  
  I believe most UK current account providers offer the facility of making adhoc payments to third parties online, although I cannot comment on Spanish banks. To set up a payment to your grandson's account you will need to quote his N&P account number and sort-code, the payment will then be made through BACS and will be credited to the account. If you are asked for a reference, I would suggest that you enter the name of the account holder.
  
  I hope this information answers your query.
  Regards
  Denise Dee
  Deputy Customer Service Manager
  

• I use the on-line banking systems of many banks and building societies. Not one single other organisation finds it necessary to keep expiring my internet account every three months. Why do you?   Mr H
  
  
  I use the on-line banking systems of many banks and building societies. Not one single other organisation finds it necessary to keep expiring my internet account every three months. This is annoying, tedious and totally unnecessary. Please can you explain exactly what you think it achieves? It's obviously not 'necessary' since you are the only organisation that does this. If I don't need to access my savings for, say 6 months, then why do you prevent me from accessing my account after 3 months? How about implementing a configurable option which enables different customers to have different timeouts (including "none") according to their own personal circumstances and (let's face it!) technical competence?
  
  I am sorry you are dissatisfied with the 90 day lock out on our Internet Banking.
  We have the 90 day lock-out in place as we have always advised Internet Banking customers to regularly check their accounts; so as to notice any illicit transactions and immediately report such instances to us. As one of the first online banking providers in the UK, this was a decision made from the outset. Logging onto an account over a period of longer than 3 months would not be considered "regular" checking and many customers have also now opted for paperless statements so regular checking has become even more important.
  
  Moreover, dormant accounts are often the target of fraud and this lock-out assists in preventing this. Most of the high street banks who offer such a service have suffered Internet Banking fraud from "phishing" email scams and other forms of attacks; to date we have not. We genuinely believe that this lock-out adds additional security for both us as the service provider, and you the customer.
  
  However, we do value feedback from our customers and we are continually reviewing the products and services we offer. With this in mind we are currently reviewing our position in this matter and your comments will be taken into consideration. Thank you for taking the time to contact us.
  

• Your auditors report on your financial statements appears on your site. I cannot find a copy of the annual statements themselves, can you help?   Mr L
  
  Your auditors report on your financial statements appears on your site. I cannot find a copy of the annual statements themselves, can you help?
  
  You were quoted in the FT in Sept ie pointing out that you only had 22% outside finance iro your loan book-Has this position changed with the continuation of the Credit Crunch? When are your loans generally repayable eg long or short term?
  
  Hope to hear from you asap
  
  Thank you for your enquiry.
  
  1. Our Annual Report can be found at www.npbs.co.uk/assets/R&A-2006.pdf
  
  If you would rather use the site navigation, the route is from our home page (www.npbs.co.uk):
  * Select "About Us"
  * Select "Meetings and Reports
  * Select "Reports and Accounts"
  * Select "Report & Accounts for 2006"
  
  In either case, this should open the 48 page document.
  
  2. In our total balance sheet, approximately 22% of our total liabilities (including retail funds, wholesale funds, reserves and other liabilities) comes from wholesale sources. This is a very similar proportion to September. There has been an increase in total balances from wholesale sources in this period but the rise has been used to boost the proportion of liquid assets we hold during the "credit crunch". I can also confirm that we have continued to attract retail inflows throughout this period and are in the position where all of our residential mortgages are completely funded by retail savings.
  
  3. Our wholesale funds are of mixed maturities. We aim to ensure we have a spread of funds from different sources as well as different time periods. This is partly because funds that mature in shorter periods tend to be cheaper, whereas longer dated funds will normally be more expensive. We have been successful in attracting a range of funds this year to maintain this spread of funding with some, for example, having a three year maturity.
  

• Would you consider opening a branch in Aldeburgh?   Mr M
  
  Would you consider opening a branch in Aldeburgh?
  
  Thank you for taking the time to contact me regarding a branch in Aldeburgh.
  
  We are currently reviewing our representation as part of our branch network strategy, looking at our existing estate in terms of refurbishment and relocation as well as opportunities to expand. At present a number of possible locations are under consideration where Norwich and Peterborough Building Society may wish to open future branches or work with an Agency partner to extend the service offered to our members. I am pleased to receive your enquiry and would confirm that Aldeburgh will be one of the locations we review over the coming six months, however, at this stage it is too early to say whether it will feature on the final prioritised list.
  
  I will write to you once we have completed our review to let you know whether Aldeburgh has made it on to the list, meanwhile may I take this opportunity to extend my best wishes for Christmas and the New Year.

• How do we get the NPBS ATMs to accept deposits?   Mr M
  
  How do we get the NPBS ATMs to accept deposits?
  
  Thank you for your rapid response of 1st November.
  
  On the question about our ATMs accepting deposits, I am afraid that is not on the horizon at all. This is for two reasons:
  
  First, the ATMs that we used to own we sold on 2002 to what was then Moneybox and is now Cardpoint. They provide the machines on an outsource basis under the contract agreed at the time. They have made no indication of a move towards to deposit receiving machines and there are attractions in our current contract which we might lose if we sought to press them to change the current terms to include deposits.
  
  Secondly, with the exception of Chapelfield in Norwich, all our ATMs are located outside our branches and our approach is to encourage customers who want to use to branches to have face to face contact with our cashiers. That is different from banks like HSBC, but that is just the service orientated approach that we have decided to adopt.
  
  I am sorry that I cannot help on this one.

• I have been a customer of the Society for many years and have always had good service however from time to time not that often I may need a copy of my passport to be validated and I ask in the branch as I am known there is it possible for this to be done for me if it is a quiet time   Mr C
  
  I have been a customer of the Society for many years and have always had good service however from time to time not that often I may need a copy of my passport to be validated and I ask in the branch as I am known there is it possible for this to be done for me if it is a quiet time
  
  Thank you for your enquiry.
  Verification of documents such as passports is required for identification purposes and, therefore, should only be completed by an appropriate person who knows the individual concerned and has done so for a number of years.
  At the Norwich and Peterborough Building Society we have been asked by many customers over the years to verify such documents in this way. Whilst the customer may be known to the Society as a long serving customer, they are not necessarily well known to the individual staff members in any particular branch at that time.
  We therefore have a policy in place where we do not generally allow documents to be verified for customers, unless the customer is specifically known to the member of staff in a personal capacity. In such instances, where the customer is known to the member of staff on a personal basis, we are happy for them to provide validation for a document in that capacity only.
  
  





• Following the Northern Rock debacle, what measures have you been taking, and will you be taking, to reduce exposure to risk to the N&P Building Society's customers money from the international money markets?   Mr C
  
  Following the Northern Rock debacle, what measures have you been taking, and will you be taking, to reduce exposure to risk to the N&P Building Society's customers money from the international money markets?
  
  Thank you for your emaIl.
  Norwich and Peterborough is in a strong and comfortable financial position. We are a traditional building society, where we have more retail savings deposits than the total of our residential mortgages, and are therefore not reliant on the wholesale market.
  We have a strong branch network which we are expanding and last year launched a very popular 50 Plus Savings Account through our branches. As a result, we have recently been reducing further our wholesale market borrowings.
  This is a very different position from Northern Rock, which has reduced its branch network and has been reliant on the wholesale market to fund its rapid growth.
  We are confident that we will not need to follow Northern Rock in taking a loan from the Bank of England.
  





• My wife is a NPBS member. Our question is why can she not have an annual on paper statement of her inverstment with you?   Bob
  
  My wife is a NPBS member. Our question is why can she not have an annual on paper statement of her inverstment with you?
  
  Many thanks for your email of 25th October asking about annual statements on behalf of your wife.
  As far as issuing a combined statement of account and Section 352 tax certificate is concerned, we do not issue these because interest paid on qualifying ISA's is not subject to income tax and therefore should not be declared on her annual tax return. We have discussed this matter in detail with HM Revenue & Customers, since they determine the majority of ISA regulations, and they have said that we should not issue a tax certificate. As we are subject to regular inspections by HRC in this regard and they will impose fines for non-compliance with the letter of the regulations, we listen to what they say.
  Turning to the question of the simple statement of the account however we can deal with this in one of three ways:
  First, if you would like us to send an annual statement, we will diarise to do so. We stopped sending them automatically some years ago, but will readily send them annually if requested.
  Secondly, your wife's account can be fully seen on the internet if she would like to ask us to "web enable" her accounts. She can then print out a statement herself.
  Finally, as with the majority of our savings accounts, we offer the facility of an account passbook/investment record certificate for ISA's and this represents the record of account. We recommend that account holders send their passbooks to the Society for updating at least annually and for ISA's we recommend that this is best done after 6th April, since this is when the interest is paid onto the account.
  Since you do not have a branch near you, we will supply pre-paid envelopes for use for this purpose. I hope the above information explains what steps that you can take to your satisfaction. Should you wish to follow up the matter in one of the ways I have outlined, please feel free to contact me again.





• I have a N&P credit card, why can I not make cash repayments or transfers, to this card from my N&P current account?   Mrs H
  
  I have a N&P credit card, why can I not make cash repayments or transfers, to this card from my N&P current account?
  
  I have to withdraw cash and go next door to make payments at Barclays Bank!!!
  
  To answer your query I should like to explain that, as a building society as opposed to a clearing bank, we do not have the facilities or systems to process any bank giro credits in our branches and therefore this is not a service we provide to our customers.
  
  However, as you are aware, the payment can be paid by cash via a bank giro slip at a bank. An easier alternative, however, is to use your Gold current account with the Society to make the payment by the 'bill payment method' which uses the bank automated credit system (BACS) which we do offer and which will shortly become faster than paying in by cash. If you have internet banking, you could even do this in future from your home. Should you wish to use this payment option in future your local branch would be pleased to assist you.




• Your latest newsletter has a contact for you which your website does not recognise. Mr C from Bramcote
  
  Is the fact that your latest newsletter has a contact for you `www.npbs.co.uk/about-us/ask-matthew` which your website does not recognise just another example of the administration miscompetence that I am currently encountering with your firm?
  
  Thank you for your recent email. We have looked into the problem that you experienced and discovered that you are right. I can only apologise for the fact that my contact details were incorrectly printed in the Autumn 2007 issue of Society News and we have now amended our website so members can access using the address as printed.
  
  Thank you very much for pointing this out.




• Do you offer Shared Ownership Mortgages?
  Mr W from Annan
  
  Do you offer Shared Ownership Mortgages?
  
  Thank you for your enquiry regarding Shared Ownership Mortgages.
  
  The Society offers mortgages on a wide and diverse range of property. However, I regret that, at the current time the Society does not consider applications on Shared Ownership proposals. This is an area of lending that is being monitored and we may reconsider our lending policy in the future.




• Have you considered offering mortgages in Scotland?
  Dr B from Edinburgh
  
  I phoned to discuss your offset mortgage tonight and found out you don't offer mortgages in Scotland. One reason might be your need to find a Scottish solicitor at a decent price for your remortgage offer. When I moved from England my Edinburgh estate agent recommended PSM direct which charged me £500 flat rate maximum for a full conveyancing service for up to 3 bids on 3 different properties including the house we successfully bought. I've no connection except as a satisfied customer but recommend you check them out if you are thinking of offering your mortgage services North of the border.
  
  I am sorry that we are unable to assist you in obtaining mortgage facilities. As explained by our staff, the Society does not currently lend in Scotland and has not done so since November 2000. Having said that, the Society's lending policy is constantly under review and it may well be that this situation changes sometime in the future.
  
  I note the information you have provided regarding Scottish solicitors and would like to take this opportunity of thanking you for this. I have passed these details to the Society's Head Of Residential Lending to be retained on file should we review our policy of lending in Scotland.
  
  Once again, thank you for the information you have provided to me.




• Why do I no longer get my paying-in book stamped?
  Mr A from Hoveton
  
  I have a current account with a paying-in book which recently was stamped each time I made a payment into my account. I have now been told, by the staff, that this cannot be done and I am given a separate receipt for each transaction.
  
  I thought the idea was to cut down on the amount of paper generated, not increase it. In any case it is far easier to keep the stubs in the paying-in book altogether rather than lots of loose pieces of paper.
  
  Your comments would be appreciated. Can we please go back to the old system?
  
  Thank you for your enquiry about the stamping of paying in books.
  
  Norwich and Peterborough have never had a formal process requiring the paying-in book stubb to be stamped when funds are paid into an account and the Society stamps are not designed for this purpose as they do not evidence the date. Therefore, unlike a clearing bank, stamping the paying-in stubb does not represent a receipt for the customer, nor does it provide confirmation that the transaction has been completed correctly on the banking system..
  
  Occasionally the value of a transaction might be in dispute after the event and by issuing our customers with a system generated, printed receipt, we are able to provide clear evidence of the amount and date of the transaction, plus confirmation that it has been entered correctly onto our systems. Despite the production of a paper receipt, this gives security for both Norwich and Peterborough and, more importantly, our customers and reinforces our commitment to security of assets for our members. In the light of current concerns about security, we have decided this is an area where we have to rank our "green" credentials second!
  
  I appreciate that some customers would prefer to have a paying-in book stamped rather than receive a printed receipt, however to adopt that approach formally would also involve considerable cost as we would have to ensure that all stamps remain in a secure environment behind security screens to prevent potential theft. This we believe would also detract from the open and friendly manner in which we serve with our customers.




• Can I open a GBP(£) and US($) savings accounts with you? I have a US passport and a UK address?   Mr S
  
  Can I open a GBP(£) and US($) savings accounts with you? I have a US passport and a UK address.
  
  Thank you for your recent enquiry regarding the savings accounts the Society offers.
  
  I should like to confirm that the criteria to open a savings account with the Society is that you have to be a resident within the UK for 3 years. Furthermore, deposits can only be made in UK Pound Sterling; we do not offer US $ accounts.
  
  The identification required to open a savings account is your US passport as personal identification and a current utility bill (dated within the last 3 months) addressed to you at your UK residence.
  
  If you would like to discuss the accounts currently available to you, please do not hesitate to contact us on 0845 300 2511* between the hours of 8am to 8pm Monday to Friday and 9am to 5pm on Saturdays.




• What exposure to the American sub-prime crisis either directly or indirectly is held by N&P?    Mr D from Ely
  
  What exposure to the American sub-prime crisis either directly or indirectly is held by N&P? Are all your mortgage lendings financed by deposits made by your members? If not how is the excess funded?
  
  Thank you for your enquiry. The Society has no exposure to the American sub-prime markets, either directly or indirectly in the form of any securities that we have invested in.
  
  At the present time we have more retail deposits than residential mortgages, but like all banks and building societies, from time to time we do have exposure to the wholesale markets, particularly for liquidity management. Our current reliance on the wholesale markets is 22%, which is the same as our liquidity.




• Why do you levy a charge when there are insufficent funds, but they have "uncleared" funds in an account?    Mrs R from Norwich
  
  Why do you levy a £29.50 charge to long standing customers when they have "uncleared" funds in an account, but a cheque hits the account for clearance the day before? It's annoying enough for me to look at moving accounts to a different provider.
  
  As stated in the Terms and Conditions of the Gold Current Account, it is a requirement to have sufficient cleared funds in your account the day prior to an item being presented. If there are insufficient cleared funds in your account when a Direct Debit is presented, then the item will be returned and a charge of £29.50 levied. Unfortunately we cannot tell in advance if a cheque that has been credited to an account will be honoured, therefore we are unable to pay an item in anticipation of the cheque being paid.
  
  The Society is owned by, and listens to, its members and we recognise that mistakes can happen so, if a customer makes a mistake and they incur a fee we will refund the first one on application. Thereafter, to be fair and consistent to all our customers, all future fees and charges will not normally be refunded unless there were exceptional circumstances that we feel should be taken into consideration. In your case I note that you have not had any charges refunded previously, therefore I have refunded £29.50 that has been levied to your account. Any future charges will stand.
  
  I hope that I have answered your query satisfactorily. If you require any further assistance please ring our Contact Centre on 8045 300 2511 (calls will be recorded) where an advisor will be happy to help you.




• Can extra facilities be added to Internet Banking?
  Mr W
  
  Internet Banking. 1) Can we have a facility to top up mobile phones. 2) Statements. Can we have a facility where we can state start date and finish date.
  
  Thank you for your enquiry. The facility to top up mobile phones is not something we are currently planning to offer, but we appreciate and will consider your suggestion. The phone networks all offer the facility to top up your phone online through their own website.
  
  A start and end date for displaying statement transactions has not been assessed previously, but is difficult to achieve due to technical constraints with our current system. As our internet banking service is subject to regular reviews, with a major review in 2008, I will ensure your suggestion is considered.




• What accounts do you offer for my grandchildren?
  Ms M from Peterborough
  
  We have two grandchildren who have Headstart accounts but would like an account where they can put cash in and withdraw. what do you advise?
  
  Thank you for your email to the Society regarding your grandchildren's accounts. At the outset, I would like to take this opportunity to thank you for your continued and valued custom with the Society. Having reviewed the instant access accounts we can offer, I have set out below those which you may find of interest:
  
  Easy Plus - this account offers tiered rates of interest payable on the anniversary of when the account was opened, instant access and a bonus payable on each anniversary of the account being opened where no more than two with drawls have been made each year. There is the provision of an ATM Cash Card available to those customers aged 13 years and over. Minimum balance required is £1 and maximum investment is £1 million.
  
  Stakeholder Mini Cash ISA - this ISA is a variable rate currently paying 5.2%, minimum balance of £10, maximum of £3000 each tax year. Withdrawals can be made by post or at any branch - no notice required. You can choose to invest a lump sum, make regular savings or simply top up your ISA as and when you can. Minimum age to open is 16.
  
  Postmaster - account offers tiered rates of interest dependant on the amount held. This is an easy access account with a minimum balance required of £1000, maximum of £1 million. It is a postal account that can also be managed over the internet or the telephone which makes it easy for you to move money in and out of any bank account in the UK by Bill Payment. Withdrawals can be made by post but not via a Norwich and Peterborough branch.
  
  Gold Current Account - account offers tiered rates of interest dependant on the amount credited and held in the account each month and the provision of a VISA debit or ATM Cash Card which can be used around the world wherever the VISA sign is displayed. Other facilities can be offered that you may need such as direct debits, overdrafts (subject to status), standing orders, money transfers, monthly statements and cheque books. I hope the information provided is of interest however, please do not hesitate to contact us on 0845 3002511 if you require further assistance.




• Does the Society offer mortgages in the Republic of Ireland?
  Mr F from East Dereham
  
  Does the Society offer mortgages in the Republic of Ireland?
  
  Thank you for your recent enquiry regarding the provision of mortgage facilities in the Republic of Ireland.
  
  Whilst the Society does offer mortgage facilities outside of the UK, in Gibraltar and some parts of Spain, we do not currently lend in the Republic of Ireland.




• Are Norwich and Peterborough being taken over?
  Mr B from Peterborough
  
  I've heard a rumour that the Spanish bank that owns Abbey National is trying to take over Norwich & Peterborough is there any truth in this?
  
  Thank you for your enquiry.
  
  Absolutely not!




• How does one apply to become a non-executive director of the Society?
  Ms F from Trunch
  
  How does one apply to become a non-executive director of the Society?
  
  Thank you for your email. Firstly, I should explain how the Society's Rules govern the appointment of directors.
  
  The Board can appoint directors to fill vacancies arising during the year. A director who is appointed on this basis has to stand for election at the next Annual General Meeting (AGM). These appointments can occur, for example, following a retirement of a director during the course of a year.
  
  Members of the Society can also nominate individuals to stand for election as directors at an AGM. The nomination form has to be signed by at least 200 adult members of the Society with at least 2 years standing, each of them having either £200 in a shareholding account or a mortgage of £200. Nominations have to be received by the Society by 31st December preceding the AGM.
  
  In addition to the provisions of the Society's Rules, any person standing to become a director has to satisfy the Approved Person's Regime of our regulator, the Financial Services Authority.
  
  In line with best practice in corporate governance, our normal term of appointment of non-executive directors is for a term of 3 years with the probability of a further 3 years. Only exceptionally in the case of the chairman or some other case where we would explain the reasons, would a director be asked to serve for longer.
  
  In April this year, we appointed 3 new directors to fill vacancies which arose due to the retirement of other directors. Before appointing, we advertised the vacancies, together with descriptions of the role and the personal qualities required, both in our Society News magazine and, for a period of time, on the Society's website. We invited any members that were interested to put their names forward and received over 160 applicants. The next time we will do this is likely to be in 6 years time.
  
  I hope that this clarifies the appointment processes for you.




• How do Green mortgages benefit your customers?
  Mr B from Oakham
  
  How much of the money spent by your customers on green mortgages through the Carbon Neutral Company, benefits your customers directly in the UK?
  
  Thank you for your enquiry.
  
  The incentives provided to customers who have green mortgages with Norwich and Peterborough - namely the planting of trees to cover a house's CO2 emissions - are all UK based. This was a specific requirement of ours when we entered the agreement with the Carbon Neutral Company (then Future Forests) in 2000.




• How do you balance mutuality and competitive interest rates?
  Mr H from Bungay
  
  We have been told in the past that mutuality is the name of the game. How do you reconcile this with the current ISA rates now being offered to savers?
  
  I accept that N&P's easy access Stakeholder ISA is probably in a mid-market position and that there are more attractive ISA rates currently available, although we did increase our Stakeholder ISA rate to 5.4% on 3rd August. However, we do offer a wide range of ISA options. For customers who wish to save in a fixed rate, we have a 1, 2 or 5 year fixed rate ISA; these are currently paying a fixed rate of 6%. In addition, we have a 60 Day Notice ISA for balances of at least £18,000; this is now paying 5.85%.
  
  We are also very much in the leading group in other relevant savings categories. For example, on savings for customers who are aged 50 or over, our easy access 50 Plus Savings Account is a Best Buy and pays 5.85% on balances of £5,000 or more. Furthermore, we have recently been included in the Money Facts consistency tables for our Postal 90 and NetmasterGold Saver II accounts.
  
  Overall, therefore, I believe that we offer a good choice of ISAs and other savings accounts "as it says on the tin".
  
  However, mutuality is not just about the interest rates that we offer:

  • We are committed to providing a high quality service to our customers, and our success in attaining this is proven by the fact that 96% of customers are 'very satisfied' or 'satisfied' with the service we provide.
  • Our branch network has remained strong over a period when many banks have closed branches. Many of our branches are located in towns and areas where, without our presence, customers would have little choice of financial provider.
  • We are also focused on serving the communities within our core region and we have supported many local individuals, organisations and charities both financially and through other means.

  Overall, we put customers, our members, first and this can be measured in many different ways, not just in the interest rates we offer.




• How much interest would I receive?
  Mr M from Corby
  
  How much interest would I receive monthly for £80,000 with an easy access aged over 50?
  
  Thank you for your enquiry.
  
  Our best variable rate for savers who are aged 50 or over is on our 50 Plus Savings Account. For those who want to receive interest on a monthly basis, the current rate on this account is 5.7% gross (5.85% AER) which would earn gross interest in one month of around £380 on an investment of £80,000.
  
  I hope that you find this attractive.




• How can I upgrade my bank account?
  Mr L from Boston
  
  Why can't I upgrade from a basic bank account to a full account? All I want is a Debit Card and no overdraft.
  
  Thank you for your email.
  
  As the full account comes with a debit/cheque guarantee card and an automatic overdraft facility there are certain criteria to be met to enable a basic account to be upgraded. For instance:
  
  

  • There must have been £500 or more credited to the account each month for the last 6 months with no unpaid charges
  • You must be registered on the Voters role for the last 3 years
  • There must be no detrimental information or missed payments registered at the credit reference agency.

  Unfortunately, I am unable to respond to questions that relate to your specific personal circumstances for reasons for confidentiality. May I therefore suggest that you contact Emily Gray, who is the Duty Manager of our Boston branch. Emily would be pleased to discuss any queries you may have. The telephone number is 01205 311130.
  
  Thank you for your query. I am sorry that I am unable to be more specific on this matter.




• Why can't I withdraw money from my account at my local Post Office?
  Mr W from Wrexham
  
  Wretham is a small village, several miles from the nearest town, and hole in the wall machine. The post office provides services on two mornings a week at the village hall. I understand that it is not at present possible to withdraw cash , using my debit card, from my Gold Current Account. When will this facility become available, as with numerous other banks and building societies?
  
  Thank you very much for your recent enquiry via the Society's website.
  
  We are aware of the availability of the service that you mention at the Post Office as a result of an agreement that was reached with the Post Office with two of the clearing banks at the time when the banks were reducing their branch networks.
  
  When we last reviewed this we felt that the cost of changing our operating systems to accommodate this were high and that the spread of our branch network was large enough that there was no high demand for this to justify the expenditure.
  
  However, we will look at the matter again because we can understand the convenience point that you have raised, but I would not get your hopes up too high at this stage.
  
  Thank you for raising the matter with me.




• What is a Muslim mortgage and why is it different?
  Mr A from Boston
  
  What is a Muslim Mortgage and why is it different?
  
  Traditional UK mortgage products are generally unsuitable for Muslim customers as they are not compatible with Islamic (or Sharia) law. Under Islamic law, the payment or receipt of interest is forbidden. This requires a change to the book keeping and computer systems of banks and building societies; but a number of lenders have developed mortgage products specifically for Muslims.
  
  Typically, under an Islamic mortgage arrangement the lender will purchase the property and then sell it on at a higher price to the customer, who will then pay back the capital over a set period of time via monthly capital payments. Alternatively, the customer could pay the lender a 'rental payment' for use of the property and then, once the agreed period of time has elapsed, ownership of the property is transferred to the customer.
  
  At present, only a handful of lenders operate in the Islamic mortgage market in the UK largely due to the complexities of these mortgage products. N&P does not offer this type of mortgage and has no plans to do so at this stage.




• Could I get a mortgage on a log cabin?
  Mr D from Kidderminster
  
  Do you do mortgages on log cabins and a plot of land with planning permission for one log cabin?
  
  The Society welcomes self-build applications on a wide range of different construction methods. In order that we can consider your proposal further we would require full details of the project and construction in order that we can establish whether or not we may be able to assist you in your project.
  
  May I suggest that you telephone the Mortgage Team based within our Contact Centre on 0845 300 2522 if you would like to discuss this in more detail.




• Could I transfer my matured TESSA-Only ISA to a Mini Cash ISA?
  Mr B from Bourne
  
  I have a matured fixed rate TESSA ISA that was automatically transferred into a variable rate ISA on maturity. I want to transfer it to your 2 year fixed rate ISA as advertised, which states you can transfer in from another ISA. I am told by the local branch that I cannot do this. Can you explain why?
  
  Thank you for your recent e-mail relating to your TESSA-Only ISA that you hold with us.
  
  I would like to explain that at present, the only TESSA-Only ISA available to existing customers is our variable rate product, to which your account was transferred upon the maturity of the previous fixed interest rate.
  
  You are correct in that we offer a Two Year Fixed Rate Mini Cash ISA, but unfortunately TESSA-Only ISA funds cannot be transferred into Mini Cash ISAs. Therefore you are not able to transfer funds from your existing Variable Rate TESSA-Only ISA into the Two Year Fixed Rate Mini Cash ISA (or any other Mini Cash ISA).
  
  We are currently liaising with HM Revenue and Customs to look at other ways in which our TESSA-Only ISA customers could reinvest their funds whilst continuing to benefit from tax free interest and whilst we are not able to offer your any alternative options for the investment of your TESSA-Only ISA funds at this time, we hope to be able to do so in the future, although I am not able to give an indication of likely timescales.
  
  I hope that the above information answers your questions. Should you wish to talk to someone about your TESSA-Only ISA please contact David Presland, Banking Operations Manager on 01733 372287.




• Can you increase the daily Internet banking limit?
  Mr S from Whitwell
  
  I have been a personal customer since the Society introduced Internet-accessible accounts.
  
  I have been so pleased with the workings of the system that I have more recently brought some of my business accounts to the society.
  
  The £10,000 a day limit for Internet payments is a real pain. We have to mess around with such payments at least once a week.
  
  PLEASE for business accounts (if not for personal) can we have an increased daily limit?
  
  I am so sorry that you have found our Internet banking limit inconvenient. This is an area that is currently under review, but unfortunately I cannot offer you a solution in the immediate future.
  
  The current situation is that the maximum bill payment that can be made through our branches and the Contact Centre is £10,000 per transaction, but there is no limit to the number of payments that can be made per day. The maximum bill payment that can be made via the Internet using our Internet Banking service is £10,000 per day per account.
  
  These limits are in place as a fraud prevention measure. Large payments are felt to expose the Society and its customers to an unacceptable level of risk and many of our competitors operate either a similar limit or a 24 hour delay before releasing payments. We are reviewing this limit, but our recent experience makes it unlikely that we can move it again soon.
  
  Given that the limit at both our Contact Centre and our branches is currently £10,000 per transaction (since we are able to conduct further authentication processes with the customer present), I wonder whether this might not be the best solution for the time being.
  
  I am sorry that I cannot be more immediately helpful, but the level of Internet fraud is forcing us to keep tight and admittedly irksome controls on several aspects of our service at the moment. We do, however, keep the area under constant review and if we can relax more, we will do so. In the meantime, thank you for your kind comments and custom.




• When will the Society reduce the penalty charges?
  Mr M
  
  Following the recently highlighted incorrectly calculated charge for returning cheques or direct debits unpaid (£29.50) when will the Norwich and Peterborough reduce this penalty charge?
  
  Thank you for your question on this contentious issue. I will try to shine some light on what is a thoroughly confused situation. I would first state that all our charges are lawful and have been correctly applied.
  
  Firstly, it should be noted that our charge for returning cheques or direct debits is not a penalty in law. A penalty is a specified charge which is made in the event of a breach of contract. Our charge is made for a service that we provide and is not made in the event of a breach of contract. Secondly, our charge is not an unfair term under the Unfair Terms in Consumer Contracts Regulations 1999 to which I refer below. Without going into a lengthy legal explanation, it is a core term of the contract and, in any event, satisfies the test of fairness.
  
  The background to the confusion covered in the press is as follows:
  
  Historically, the issue of bank or any other charges in finance has essentially been governed by contract law. If customers enter freely into clear contractual commitments with their banks, the courts will not usually over-ride these contractual terms. Common law principles have usually only been invoked when the contractual position is unclear.
  
  However, in 1995 as a result of European requirements, the UK Government introduced the Unfair Terms in Consumer Contracts Regulations. These apply to all standard form contracts whose terms have not been individually negotiated with a consumer. The FSA has been given responsibility for enforcing the Regulations in relation to bodies which it regulates and has largely approached the issue through its Treating Customers Fairly initiative, which as I mentioned before, has not focussed at all on bank charges. It is important to note that only the courts will be able to determine how the Regulations will apply in the light of cases brought before them.
  
  In addition, banks and building societies have voluntarily bound themselves to observe the Banking Code, which is regularly reviewed to clarify customers' and firms' rights and responsibilities in the banking field. Banking is not a regulated activity, unlike mortgages, investments or insurance, although at a high level all financial services firms are regulated by the Financial Services Authority. There have been no comments on banking charges by the FSA, Banking Code Standards Board or substantially by the Financial Ombudsman Service.
  
  This has therefore been the legal framework on which the banking industry has operated.
  
  Recently, as part of its competition policy review of credit card default charges, the Office of Fair Trading (which also has enforcement powers under the Regulations, though not in relation to general banking matters) made a partial comment about bank charges last October. It was then asked to clarify these comments and said that it would do so by the end of March. At that time, it then indicated that the issue was more complicated than it had originally thought and that it would now take until the end of November to clarify its view.
  
  It is only the courts that can decide the matter, but in view of the confusion created by the OFT statement - and the failure of any of the other regulators to state how they would approach the matter themselves - it is understandable that none of the banks or building societies involved, including ourselves and Nationwide, wish to rush to court until the issues to be decided have become clearer. That is what is going on now, but it is likely to be several months before the matter comes to a conclusion.
  
  In the meantime, none of the banks or building societies believe that their charges are anything other than lawful. If customers complain we will consider each case on its individual merits in the time frame set for complaints handling by the FSA.
  
  I hope that this gives some clarity to the present unsatisfactory situation.




• Have you considered offering a Student Account?
  Mr M from King's Lynn
  
  Have you ever considered a Student Account even if it was a version of an existing account?
  
  We do not have an account that is a student account as such but our basic Gold account is available to customers who are 16 and over. This comes with a cash card and it is internet enabled.
  
  We are looking at introducing a debit card with this account later in the year. I know that this is not like the concessionary accounts run by the big commercial banks, but if you "blow off the froth" this account and its graduated successors are generally good value and I hope that you will be interested in opening one.




• Please explain Mr Willgress' severance pay and Mr Horsfield's appointment?
  Mr L from Pelican Waters
  
  Let me begin by saying my wife and I are happy with the overall direction and performance of the Society.
  
  I note in the 2006 Financial Summary Statement that Martyn Willgress, in addition to his £108k fees/salary, also received a £360,540 payout. This sum was, apparently, to cover "... the period of contractual and severance. "Notwithstanding Mr Willgress' "...considerable input ..." on what basis was such a significant amount of members' funds donated to his severance? A second question if I may. I note that Mr Horsfield has (profitably?) retired from his role with Price Waterhouse and now seeks appointment as a director of NPBS. I wonder he has the time when I consider all his other commitments. May I assume item 2 on the AGM agenda is pure coincidence? We have witnessed some appallingly bad governance in recent years in different parts of the financial service industry - not NPBS thankfully - but I do not accept members should simply sit back and assume the board is always right. No doubt you have justification for the payout and Mr Horsfield's appointment and no doubt you will be happy to share it rather than leave our voting decisions to a two line footnote.
  
  Thank you for your email from Australia. I am delighted that you feel that the Society's direction is satisfactory and that our relationship continues to work over such a distance.
  
  You have asked about two aspects of how our corporate governance relates to the directors.
  
  In Martyn Willgress' case, Martyn worked for the Society for 30 years, 12 of them as a director, during which time he made a substantial contribution in several important areas. When we agreed on his retirement as part of our succession planning last year, we also felt bound to honour the two year notice period in his contract of employment and this is what the payment relates to. In line with corporate governance, all new executive directors' contracts of employment now only have a one year notice period, but in Martyn's case our legal obligations nicely coincided with what was an appropriate recognition of his contribution.
  
  Secondly, you have raised the issue of Gordon Horsfield's appointment and our relationship with PricewaterhouseCoopers. On the latter point, PWC were appointed as auditors after a full market testing in 2003, during which time the Chairman of the Audit Committee was Michael Fowle, previously the Senior Banking Partner at KPMG. Their service to the Society continues to be very good and we have no reason not to wish to recommend them for reappointment.
  
  As regards, Gordon Horsfield's appointment, let me first explain how we approached the make-up of the Board. As a medium-sized but complex financial services organisation, we need to ensure that we have a number of specialists on the Board who have a broad experience of best practice in the public markets, typically with a London bias and covering such areas as treasury, investments, risk, legal, audit, marketing and retail. We try to balance this with a number of directors with a particular knowledge of our region - hence the recent newspaper advertisement and appointment of three new regionally-based non-executive directors. For the specialist director roles, we employ headhunters to search out a short list of suitable candidates. In Gordon's case, we appointed him after an extensive search, with a particular brief to become Chairman of the Audit Committee in succession of Michael Fowle. With this role we were bound to look for a candidate from one of the major accounting firms and, although we looked more widely, Gordon was felt to be the best candidate. The fact that he had previously worked at PWC was not thought to be a relevant factor since they had already been appointed auditors in 2003. More specifically, the Chairman of the Audit Committee is a critical role and we positively wanted someone who had and continues to have deep experience of the best corporate governance and control standards. Gordon unequivocally meets that brief: he applies the same disciplined approach to the oversight of our affairs as he does to the management of his own, while the breadth of his experience has given us many insights into the general management and planning of our business as a whole.
  
  I hope that these comments will help you to use your proxy from afar, possibly on the internet to vote in favour of the AGM motions.




• Do you have any award scheme for branches or staff?
  Mrs A from Oundle
  
  I have had superb service from the staff at the Oundle Branch over the last two years. Do you have any award scheme for branches or staff?
  
  I was delighted to see that you are happy with the service you have received from Joanna and her colleagues at the Oundle branch. We put a great deal of time and effort into providing our customers with a high level of service and it is very gratifying when those efforts are recognised. We do indeed have two awards. For our staff within Lynch Wood it is called the 'We Can Help' and for our branch network the award is called the 'Customer Service'. These are annual awards, and the results are compiled from several elements, including customer feedback. However, in light of your specific comments, I will be contacting Joanna to pass on your kind remarks, along with my own thanks.
  
  It is good to hear when our staff have done well and I am grateful to you for taking the time to write to me.




• Why are there the same number of candidates as vacancies on the voting paper for the AGM?    Mr H from Cambridge
  
  Once again I have received voting papers for the AGM. Once again it would appear that the vote is not a vote but is in fact a rubber stamp. There are only the same number of candidates as vacancies! I shall be pleased to receive an explanation of what will be done in future to change this position.
  
  Thank you for your email. To answer you fully, let me first explain how the Society's Rules govern the election of directors at an AGM.
  
  Because we follow best practice in corporate governance, our Rules require that one-third of our Directors retire at an AGM and stand for re-election. This happens on a rotating basis so that to ensure that each director has to stand for re-election at least every 3 years. Our normal term of appointment of non-executive directors is for a term of 3 years with the probability of a further 3 years. Only exceptionally in the case of the chairman or some other case where we would explain the reasons, would a director be asked to serve for a third 3 year term. This is the same practice as is adopted by public limited companies.
  
  The Board can also appoint directors to fill casual vacancies during the year, but anybody who is appointed on this basis has to stand for election at the next AGM. These kinds of appointments can occur for example when a new director is appointed during the course of a year.
  
  Members of the Society can also nominate individuals to stand for election. The nomination form has to be signed by at least 200 adult members of the Society with at least 2 years standing, each of them having either £100 in a shareholding account or a mortgage of £100. Nominations have to be received by the Society by 31st December preceding the AGM.
  
  Quite apart from the Society's Rules, any person standing to become a director of the board has to satisfy the Approved Person's Regime of our regulator, the Financial Services Authority. The full requirements of directors under this regime are set out on the attached notes which we earlier posted on our website when asking for nominations for the recent non-executive director appointments. At that time we invited any members that were interested to put their names forward. We received over 160 applicants and from this have selected 3 new directors - Janet Turner, Simon Loftus and Chris Ewbank.
  
  Since they were selected after the 31st December, they will have to stand for re-election at the AGM in 2008. In the meantime, they will be co-opted onto the board after the AGM and the retirement of Zara Hammond and Geoff Loades.
  
  At this AGM in 2007 there will be 6 vacancies on the board to be filled. During 2006, 4 directors Gordon Horsfield, David Jervis, Jeff Pritchard and Richard Wells, - were appointed by the board to fill vacancies which arose due to the retirement of other directors during the year. As required by our rules, these 4 directors are retiring and are seeking re-election to the board at the AGM.
  
  Two further vacancies arise due to the requirement for retirement by rotation, with the other two being the number equivalent to one-third of the board, excluding the 4 new directors. Alex Tweedie and Bernie Foster are retiring by rotation this year and are both seeking re-election.
  
  The Society did not receive any nominations for candidates for election from other members and thus the number of vacancies on the board equates the number of candidates seeking re-election.
  
  I hope that this clarifies the election nomination procedure for you.
  
  I am afraid it is quite complicated, because of the Rules that we follow, but I am satisfied that we fully comply with the Combined Code on Corporate Governance and best practice in this area.
  
  I am also sorry, if you were interested in standing for the board, that you did not put your name forward last September when we called for candidates. The next time we will do this is only likely to be in 6 years time.
  
  




• How could I join the Customer Service Review Committee?
  Mr B from Solihull
  
  I would like to join the Customer Service Review Committee and was wondering how I could join.
  
  Many thanks for your enquiry about our Customer Service Review Committee.
  
  The Customer Service Review Committee (CSRC) comprises a Chairman, who is one of the Society's Non-executive Directors and four members of the Society, who are savers and/or borrowers. Members of the Committee serve for a maximum of 4 years, with 2 retiring by rotation every 2 years when new appointments are made.
  
  When retirements occur, we advertise the vacancies in "Society News" magazine and, for a period of time, on the Society's website. Members who are interested in applying to join the Committee can telephone or write in for an application form, together with information about the role of a Committee member and the qualities required. Alternatively, these can be printed from the website during the advertisement period.
  
  Candidates must have been members of the Society for at least two years, must not be a member of staff, nor closely related to one and must be aged 18 or over. The successful applicants are selected for membership, following interview by the Chair of the CSRC and the Society's Chief Executive.
  
  The last retirements of Committee members occurred in January this year. These vacancies were advertised in the September 2006 edition of "Society News" and on the website and the appointment of new members has now been completed. The next scheduled retirements will occur in early 2009 and we will be seeking applications from members in the Autumn of 2008.
  
  If you are interested in being considered at that time please let me know and I will ensure that you are sent an application form at that time.
  
  Thank you again for contacting me.

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