Tuesday, 10 July 2007

Colonial Geared Investments - the response

I got a response to my initial complaint to Colonial quite quickly:


Our descion [sic] to increase the rates had no bearing on whether the reserve bank increased the rates or not, for quite some time our interest rate was much lower that [sic] our competitors and our cost of funds was way under what our competitors [sic] rates were. We decided to increase them in line with our lenders and compete with our lenders.

"We decided to increase them in line with our lenders and compete with our lenders"???

"Our lenders"???

First of all, if their cost of funds was "way under" what their competitors rates were, why not pass the savings on to their customers?

Secondly, how does increasing their interest rates make them more competitive?

Thirdly, how the hell do they post a response with this many spelling and grammatical mistakes, and then not even have the good grace to sign off on the email?

Lastly, how in the name of sweet FSM do they think that their corporate policy has any bearing whatsoever on what the Reserve Bank chooses to do with regards to interest rates?

I will be re-financing my loan at the first possible opportunity. I'm not doing business with morons.

Disclosure: This blogger owns shares in Commonwealth Bank of Australia, which owns Colonial Geared Investments

Standard but necessary disclaimer: This is not advice. Only a complete idiot would think that any of this constituted advice. It's not even vaguely reasonable to consider this to be advice. If you are in any doubt as to the content of this, see a good, independent financial adviser immediately. They do exist.


nice1bruva said...

I think they should put their rates up 10 percentage points. Then they would be THE most competitive lender in the world!!!
D*ckheads!!! They're bloody everywhere!!!

Dikkii said...

You know, nice1bruva, I'm thinking of posting a response to their email.

Hope that you don't mind, but I'm going to steal that line about 10 percentage points if I do.

The Hulk said...

Now that is much better Dikki. Go Nuts!!!!!!

Greg said...

Oh my god, I feel sick. Just last week I casually recommended to a friend that he check out Colonial for some investment products, for comparison purposes.

Big mistake. I will not be entrusting any money to these idiots.

I think you'd get a more lucid response from your local Kwikimart. At least there's a chance the person you speak to will have studied finance.

Dikkii said...

I should point out before anyone sues that Colonial First State Investments and Colonial Geared Investments are two separate companies.

Colonial Geared Investments is a margin lender and is a trading name of the Commonwealth Bank, but Colonial First State are a subsidiary of CBA and is a fund manager.

The Purple Headed Complaints Blog in no way endorses nor disendorses Greg's "advice", if that was what it actually was.