Customer Guide

Last updated - 18/01/2008

As a regional building society with roots firmly embedded in the North, we strive to assist our members by providing a wide range of key financial services. These include:

• Savings and Investments
• Buying a home
• Borrowing money
• Insurances
• Travellers Cheques and Foreign Currency
• Credit Cards

We aim to help customers manage their money matters safely and successfully and we pride ourselves on our open and friendly manner. If you would like further details about any of the services mentioned on this page, contact your local Branch or Customer Services Department at Head Office, or click here to fill in one of our on-line forms.

We look forward to hearing from you.

The Services We Offer

As a building society, our services fall broadly into three categories:

• Savings and investments
• Mortgages and loans
• Other related financial services

Savings And Investment

Barnsley Building Society offers a secure home for your savings with a range of attractive returns dependent upon the amount you wish to save and how quickly you wish to have access to your funds.

Instant Access Accounts

These enable you to invest and withdraw money immediately without having to give prior notice. Some offer tiered rates with a higher level of interest dependent upon the balance held within the account. Further information regarding the various accounts of this type is available in our leaflet 'Instant Access Accounts'.

High Interest Notice Accounts

These accounts usually require you to give notice before withdrawing funds. You have the option of either waiting for the end of the stated notice period, or forfeiting the interest earned on the withdrawal, if taken within the notice period. They have tiered rates which offer a higher level of interest dependent upon the balance held within the account. Further information regarding the various accounts of this type is available in our leaflet 'Notice and Monthly Income Accounts'.

ISA Accounts - Mini Cash ISA & Falcon TESSA Only ISA

We developed these accounts under government guidelines to offer a tax free method of saving. Falcon Cash ISA is a mini ISA developed for cash only. Falcon TESSA Only ISA is a tax free home for maturing TESSA capital only. Further information regarding the various accounts of this type is available in our leaflet 'Tax Free ISA Accounts'.

Monthly Income Accounts

These accounts pay interest on a regular monthly basis at premium interest rates on sums starting at £10,000. They require specific notice periods for withdrawals but also carry the option of forfeiting the interest earned on the withdrawal, if it is taken within that period. Further information regarding the various accounts of this type is available in our leaflet 'Notice & Monthly Income Accounts'.

Falcon Flexi-Save

Falcon Flexi-Save is our most flexible account with a highly attractive rate. It allows for monthly saving, but does not restrict you to saving a set amount per month, nor do you have to save every month. You choose the amount you wish to save and when, the only restrictions are that just three withdrawals are permitted and deposits can not exceed the account maximum of £6,000 per calendar year. As this account offers instant access withdrawals, further information can be found in our leaflet 'Instant Access Accounts'.

Age Specific Accounts

Trustee Accounts

When an account is set up for a named individual and a third party acts as a trustee on the account, the funds held in the account must be used for the benefit of the named beneficiary.

Falcon First (Ages 0-16)

This account caters for children's savings from £1 up to £10,000. It offers instant access to the balance with no withdrawal penalties and an attractive interest rate regardless of the amount invested. See 'Instant Access Accounts'.

Falcon Club (Ages 16-23)

This account follows on from Falcon First and caters for young adults from 16-23 who wish to develop their savings up to a maximum of £10,000. It offers instant access to funds with no withdrawal penalties and an attractive interest rate regardless of the amount invested. Incentives are offered on 17th, 18th and 21st birthdays, as detailed in the account leaflet. See 'Instant Access Accounts'.

Falcon 50 Years +

This account caters for individuals aged 50 and over. It offers tiered interest rates which pay a higher level of return, dependent upon the account balance. The account requires notice for withdrawals and also offers a monthly income option for those wishing to take a regular income from their savings. See 'Notice & Monthly Income Accounts'.

Affinity Accounts

Affinity accounts have been developed with local sporting clubs. These accounts have been branded to their own unique identities and are available to their supporters only. Investors will be asked to provide evidence of their support prior to account opening. The accounts all offer instant access and have one attractive interest rate on investments of £100 or more for adults and £10 or more for under 16's. The Club involved receives an annual bonus payment based upon the average daily balance held within the account type throughout the year.

Accounts are currently available for Barnsley Football Club, Rotherham United Football Club, Chesterfield Football Club, Wakefield Trinity Wildcats RLFC and Castleford Tigers RLFC.

Mortgages and Loans

We have a selection of mortgage products which offer solutions to the wide ranging requirements of today's homebuyer. Our Mortgage Advisers will be pleased to discuss which scheme may be the most appropriate for your individual circumstances. We can also offer additional mortgage loans to existing borrowers in the shape of Homeowner Loans for home improvements or other personal spending.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Insurances

We arrange insurance cover for a wide range of risks for your home and its contents. We will also provide quotations for the cover of more specialised requirements should the need arise. Cover is arranged in conjunction with a major insurance company who can provide the best combination of protection and value.

Travellers Cheques and Foreign Currency

When travelling abroad, don't forget that you can order your American Express travellers cheques and foreign currency through any of our branches.

Credit Cards *

We also offer our customers a Barnsley Building Society Credit Card which has the backing of Mastercard and is managed through MBNA Europe Bank Ltd, which is the world's largest bank card issuer. In addition to many other benefits, our credit card has a low interest rate and attracts no annual fee. For more information please click here.

The Way We Work

Proof Of Identity

The Financial Service and Markets Act 2000 brought with it the requirements for Banks, Building Societies and financial firms to identify their customers.

Criminals steal identities and addresses to cover up their illegal business dealings and having your identity checked is just one way in which we can protect you as the customer, and the financial system, from activities that may have links to terrorist organisations.

As a customer of the Society, there may be times when you could be asked for proof of identity. Such a request is most likely to happen in one of three circumstances:

• Where previous identity checks took place before these new regulations became law and we are required to ensure that our information is up to date.
• Where we want to ensure that we are keeping our customers accounts safe and guarding against instances of stolen identities.
• Where we are required to by the law, to guard against fraudulent financial activity and instances of money laundering.

For further information regarding this issue an FSA Consumer helpline is available on 0845 606 1234.

Opening an Investment Account

Before you open an account with us we will provide you with full written details of the product including Terms and Conditions, to ensure that they match your requirements. We will also provide current interest rate information. Our investment application form also includes a section regarding Charitable Assignment.

Accounts can be opened at any Society branch or by post. Where a current passport or photocard driving licence is produced, no other item of identification will be required (except in non-face to face applications).

Otherwise we will carry out electronic verification of your personal identity and address.

If this proves unsuccessful, you will be asked to provide a combination of other documentary evidence.

Examples include:

• CURRENT FULL UK DRIVING LICENCE (OLD VERSION)
• BENEFIT BOOK (or letter no more than 6 months old from Benefits Agency confirming benefits)
• INLAND REVENUE TAX NOTIFICATION – Current Tax Year
• SELF-EMPLOYED IN THE CONSTRUCTION INDUSTRY – tax exemption certificate/card with photo of holder
• RESIDENCE PERMIT ISSUED BY THE HOME OFFICE
• BIRTH CERTIFICATE (only acceptable up to and including the age of 17)
• BLUE DISABLED DRIVERS PASS
• SHOTGUN/FIREARMS CERTIFICATE
• MOST RECENT UTILITY BILL or PAYMENT BOOK (i.e. Water Rates)
• BANK, BUILDING SOCIETY STATEMENT (the most recent and showing current address) or PASSBOOK (showing current address)*
• MORTGAGE STATEMENT (less than 12 months old and from a recognised lender)*
• Recent systems generated or signed documentation from a regulated financial sector firm indicating that an account/investment/insurance relationship exists and which contains the customers address.
• CURRENT LOCAL AUTHORITY RENT BOOK OR TENANCY AGREEMENT BENEFIT BOOK
• COUNCIL TAX BILL (current year)
• SOLICITOR'S LETTER CONFIRMING RECENT HOUSE PURCHASE (in such cases the previous address should also be verified)
• INLAND REVENUE CORRESPONDENCE addressed to the applicant at the stated address

*Other than Barnsley Building Society

If the account is opened remotely i.e. not in person and the electronic verification is not successful you will be asked to provide four separate items of identity.

If sending information by post, please do not send originals, but send certified copies only.

Cooling Off Period

If, after careful consideration, you decide that you are not happy with your choice of savings or investment account(s) and you bring this to our attention within 14 days of your initial receipt, we will help you to either switch accounts or return your money with any interest earned over that period. We will ignore any notice periods and additional charges in these cases. Fixed rate accounts are excluded from this concession.

Please note: Cheques paid in within the 14 day period will have to clear before a refund can be given.

Cheque Transactions

When you write a cheque, it will help to prevent fraud if you clearly write the name of the person you are paying the cheque to and put extra information about them on the cheque especially if you are not personally paying a cheque in (for example, because you are sending a cheque by post).

Paying cheques in: If you are paying a cheque into your account, do not make it payable simply to the Society. Add further details in the payee line (for example, Barnsley Building Society, re: J Jones, account number xxxxxx). You should draw a line through unused space on the cheques so unauthorised people cannot add extra numbers or names.

Withdrawing cheques: Cheques withdrawn from accounts need to include the name or the account number or reference number of the recipient to whom the amount is payable.

Cheque Clearance

The central clearing cycle for a cheque paid in at a clearing bank is normally 3 - 5 working days.

However, Barnsley Building Society is not a clearing bank. Cheques paid in are processed on our behalf by a clearing bank and our cheque clearance extends to 9 working days. Interest is applied from the day of deposit.

Joint Investment Accounts

The Society is happy to set up joint access for most types of accounts when requested. However as a joint account is actually owned by two parties, there are subtle differences over a standard account opening. One of the parties must elect to be the Representative Joint Account Shareholder to receive Notices of Annual General Meetings, newsletters and updated information about that account. This person will be the first named person on the account passbook and will be able to attend meetings and vote.

You should consider your withdrawal signing options with accounts requiring joint responsibility:

For example, if you set up your account as either party to sign, only one signature is required to withdraw funds from that account.

To add further security to your joint account you could consider setting your account up as 'both to sign', where more than one signature is required to withdraw funds. Should you end up in dispute with the other party, the Society has the ability to freeze the joint account upon request, to ensure that both parties agree with the final destination of the funds held within it. This temporary measure allows for communication between the Society and all parties involved.

This can also be the case in relationship breakdown where joint funds may require apportioning to other alternative accounts.

In the unfortunate event of the death of one or other of the parties, the account becomes the property of the remaining account holder. As such, the account will be transferred into the name of the remaining account holder for continuing use. This is legally binding and takes precedence over any arrangements laid down in a will.

Charitable Assignment

All new customers who wish to open accounts which provide membership to the Society will be required to sign a declaration assigning to the Charities Aid Foundation any windfall conversion benefits to which they may become entitled. This agreement will last for the first five years of membership, after which, the declaration will cease to have an effect for the member in question.

Customers whose membership begins on or after the effective date, will have the same rights as any other member including the right to vote on all issues. However, the declaration will have the effect that, for the first five years of membership, any windfall conversion benefits to which that member might become entitled, would automatically be passed over to the Charities Aid Foundation.

The declaration is included on all investment application forms.

However, it is drafted in such a way that if you are already a member through having a shareholder account at the effective date or if you are a borrowing member, then the declaration does not affect you at all.

Assignment will last for 5 years.

From the effective date, a customer opening a new membership account will agree to assign to the Charities Aid Foundation any benefit which they might receive if conversion took place at any time in the five year period from the date the account was opened.

We have a comprehensive list of exemptions which may be obtained by contacting the Society's Secretary at our Head Office. In summary they are:

• All mortgage members.
• Existing investing members with accounts opened before the effective date.

In order that certain customers are not unfairly treated, the following will not be considered as new account openings:

• Transfer of an account of a deceased member to a personal representative, widow(er) or child.
• Change of operating signature for trustee accounts into the child's sole operation.

The effect of the above is that no new five year period will begin as a result of any of these events.

If you cease to be a member for any reason you will be required to assign when you return to open your next account. The best advice is not to close all your accounts if you think that there may be a possibility that you may wish to re-open them in the near future.

How Interest is Calculated

Interest is calculated on a daily basis, including the day of receipt but excluding the day of withdrawal. If you ask us, we will give you a full explanation of how we work out interest.

Protecting Your Account

Please take care of your passbooks.

It is essential that you tell us as soon as you suspect or discover that your passbook has been stolen by telephoning your local branch.

If you change any of the personal details we hold on record for you, please ensure that you let either Head Office or your local branch know at your earliest convenience.

Changes in Terms and Conditions (Investment Accounts)

Occasionally terms and conditions regarding your investment accounts may have to be changed. If this occurs, the Society will give you reasonable notice (of at least 30 days) in writing before implementation, explaining the nature of any change.

Under normal circumstances, we will not close your account without giving you at least 30 days' notice. Examples of circumstances which are not 'normal' include threatening or abusive behaviour towards staff.

Mortgages and Loans

Choosing a Mortgage

Information about the various types of mortgages available can be obtained by speaking to staff at any of our branches.

All the Society's mortgage advisers are fully qualified to be able to offer advice regarding the type of product that would be best suited to your particular circumstances and requirements or should you prefer, information on our range of products which will allow you to make your own decisions.

We can also provide information on the particular mortgage chosen by customers who apply to the Society through a mortgage intermediary.

Interest Rates

The Society's traditional interest rate is variable, which means it can be changed upwards and downwards by the Society's Board of Directors. This rate is known as the Society's basic variable rate. The level of this rate depends on the current conditions in the financial market within which the Society operates.

For new borrowers, the Society usually offers a discount off the basic variable rate for an initial period, typically 2 or 4 years.

From time to time the Society may have a fixed rate product available, where the rate remains stable at the rate set for a defined period.

A capped rate may sometimes be available where the interest rate will not be higher than a given figure for a limited period. However, the interest rate on the capped mortgage will follow the Society's basic variable rate when it is below the capped rate.

All borrowers are notified of the terms and conditions that apply to the discount, fixed and capped interest rate mortgages. After the agreed discount, fixed or capped rate period the interest rate changes to the Society's basic variable rate for the remaining term of the mortgage.

Full details of the various interest rates available can be obtained from any of the Society's branches.

The Mortgage In Operation

Whenever you borrow money from us, we will supply details of the conditions and costs involved. Subsequently, you will always be given at least 7 days notice of any change of interest rates and payments.

Shortly after the Society's financial year end on 31st December each year, you will be sent a statement detailing the transactions made on your account during the past year.

Changes in Terms and Conditions (Mortgage Accounts)

Occasionally terms and conditions regarding your mortgage may have to be changed. If this occurs, the Society will give you reasonable notice (of at least 30 days) in writing before implementation, explaining the nature of any change.

Financial Difficulties

Should your personal circumstances change and you experience difficulties in making repayments, you should contact us quickly, as doing so will help us to try and make suitable arrangements before serious arrears develop.

The Society will be as sympathetic as possible in genuine cases of hardship. You can also get help and advice from debt counselling organisations. At your request and with your consent, we will liaise, wherever possible, with debt counselling organisations that we recognise, for example:-

• Citizens Advice Bureau, or
• Money Advice Centres, or
• The Consumer Credit Counselling Service

Charges and Fees

Up-to-date information on any charges and fees associated with mortgage and investment accounts, as well as cheque clearance periods and rules concerning overdrawn accounts, is contained in our separate 'Charges and Fees' leaflet.

Data Protection

The Society complies with the requirements of the Data Protection Act 1998 that lays down principles for good information handling in relation to personal data. Barnsley Building Society is a data controller for the purposes of the Act.

The Society's mortgage and investment application forms contain a statement on data protection, which explains how the information you provide us with, is used. This statement should be read fully before opening an account.

If you do open an account with the Society, please assist us in keeping our recorded data current by advising us of any changes that may occur in your personal details, such as possible address or name change.

The Act gives you the right to access your personal details held on file by an organisation such as ourselves. We will be happy to provide you with a copy of these details upon receipt of your written request, which should be addressed to the Data Protection Liaison Officer. A nominal fee is payable for this information as detailed in our Charges and Fees page.

Confidentiality

We go to great lengths to protect the right to confidentiality of all our customers. We will treat all your personal information as private and confidential. Nothing about your accounts or your name and address will be disclosed to anyone, including other companies in our group, other than in four exceptional cases permitted by law. These are:

• If we have to give the information by law
• If there is a duty to the public to reveal the information
• If it is in our interests to give the information (but not for marketing purposes)
• If you ask us to reveal the information, or if we have your permission

You will be reminded every three years of your right to withdraw your consent to receive Marketing/Advertising material by notice in the Members' Newsletter - The Falcon.

Members with Disabilities

The Society takes its responsibilities under the Disability Discrimination Act very seriously and whilst we make every effort to ensure that access to the Society is easy for those with disabilities, we do appreciate that there may be times when we could ease a situation a little further.

If you have any issues, please feel free to contact your local branch and we will do our best to offer assistance to suit your requirements.

Complaints Procedure & the Financial Ombudsman Service

The Society is a member of the Financial Ombudsman Service Scheme.

Although we are committed to providing you with a first class service, we recognise that there may be an occasion when you feel we might not have done this, and you may wish to make a complaint.

In many cases we find that issues are able to be resolved within the department by speaking with the appropriate Supervisor or Manager.

We will try to ensure that complaints are resolved by the close of business the following day. If this has not been possible, we do have a formal complaints procedure which we ask you to follow.

1. Write to the Manager of the Branch or Department where the complaint has arisen. The initial response or an acknowledgement will be given within 5 working days of receiving the complaint, followed if necessary, by a more substantive response within a further 9 working days.
2. If you are not satisfied with the response you should write to the Assistant General Manager -Compliance, who will investigate your complaint independently, in discussion with the Chief Executive and send a written response within the same above time scales.
3. If you are still not satisfied, you could then refer your complaint further, within 6 months of the reply from Head Office, to the Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall London E14 9SR Tel: 0207 931 0044

Financial Services Compensation Scheme

We are a participant in the Financial Services Compensation Scheme. You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim.

Mortgage advising and arranging is covered for 100% of the first £30,000 and 90% of the next £20,000, so the maximum compensation is £48,000.

Payments under the Scheme relating to investment accounts are limited to a maximum of £31,700, that is 100% of the first £2,000 of an investors total shares and/or deposits in a society, and 90% of the next £33,000. Most investors are covered, including individuals and small firms. All our shares and deposits are denominated in sterling.

Further details are available on request from the Society.

The Members Newsletter - 'The Falcon'

We will send all members a copy of the Society's newsletter, The Falcon, which is produced to keep our members informed about new products and ventures. It also includes updates regarding changes to account Terms and Conditions, as well as details regarding new legislation.

The Banking Code

We promise that we will act fairly & reasonably in all our dealings with you by meeting all the commitments and standards in this Code. The standards of the Code revolve around its key commitments, under which we promise that we will:-

• We will make sure that our advertising and promotional literature is clear and not misleading and that you are given clear information about our products and services.
• When you have chosen an account or service we will give you clear information about how it works, the terms and conditions and the interest rates which apply to it.
• We will help you use your account or service by sending you regular statements (where appropriate) and we will keep you informed about changes to the interest rates, charges or term and conditions.
• We will deal quickly and sympathetically with things that go wrong and consider all cases of financial difficulty sympathetically and positively.
• We will treat all your personal information as private and confidential, and operate secure and reliable banking and payment systems.
• We will publicise this Code, have copies available and make sure that our staff are trained to put it into practice.

The Financial Services Authority

Barnsley Building Society is authorised and regulated by the Financial Services Authority.

Under this arrangement the Society is permitted amongst other things, to accept deposits, assist with the administration and performance of a contract of insurance and to administer, advise and arrange regulated mortgage contracts.

This authorisation has been granted to the Society after having satisfied a number of high level Principles for Business and Threshold Conditions.

1st January 2008