Cheltenham & Gloucester Customers to Receive Bonus Payments

Cheltenham & Gloucester (C&G) customers who were previously ineligible for bonus payments as part of the society's proposed merger with Lloyds Bank will now receive a small windfall, according to recent revelations. The bonus payments are linked to the customers' investment accounts, with only those who have had an account since December 1992 qualifying for the full payment. However, customers who do not meet this criterion can still vote on the proposal if they have £100 or more in their account and are over 18. The qualifying accounts include Cheltenham Gold, London Share, Instant 7, Best 90, or a Tessa.

Key Takeaways:

• Customers who have had an account since December 1992 will qualify for flat payments of £500, plus a percentage of the balance, for each account, as long as the account balance is £100 or more at the end of this year.
• Customers who do not meet the above criterion can still vote on the proposal, but only if they have £100 or more in their account and are over 18.
• The society will compensate those who cannot vote due to having less than £100 in their accounts, 8% of their balance, as long as they keep their account open until the deal is completed.
• The likely date for the deal to be completed is next summer.
• C&G will scrap the £25 charge levied on customers who want to buy their buildings insurance elsewhere.
• The society's practice of levying an administration charge for checking the suitability of buildings insurance provided by other insurers has been heavily criticized.

Statistics:

• 8%: the percentage of account balance that customers will receive as compensation for not being able to vote.
• £25: the charge that C&G levies on customers who want to buy their buildings insurance elsewhere.
• £500: the flat payment for each qualifying account in addition to the percentage of the balance.
• £100: the minimum account balance required for customers to vote on the proposal.
• 31 December: the date by which customers must have £100 in their accounts to qualify for the bonus payments.
• Next summer: the likely date for the deal to be completed.

Sources:

• The Times
• The Guardian
• The Financial Times (no specific date or publication date mentioned)