Questions of Cash: 'Our dividends seem to have disappeared when TSB was bought and then born again'

Our reader expected to receive a further dividend from TSB now that it is an independent bank again

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The Independent Online

Q. I purchased 300 ordinary shares in TSB Group in November 1987 for my son, who was seriously injured in a road traffic accident in 1976. I followed this up with a further 30 ordinary shares in October 1989. We received some dividends up to the time when TSB was taken over by Lloyds, since when I cannot find a record of getting any further dividends. I contacted the registrar's department at TSB in Worthing and was assured the shares are still registered with TSB Group plc. Surely I should have received a further dividend or some written information from TSB now it is an independent bank again? DF, Lancashire

A. TSB was taken over by Lloyds in 1995. Since then your son's shareholding has been in the parent company, now known as Lloyds Banking Group. The share registrar is Equiniti, which confirms your son's holding remains on the register. The demerger of a new bank known as TSB does not affect his stake in Lloyds Banking Group; he is not a shareholder in the new TSB.

A spokeswoman for Equiniti adds: "With regards to recent dividend payments, as a condition of the [Lloyds] group obtaining state aid from HM Treasury, the European Commission required the group to agree to make a number of commitments, which included ceasing to make coupon and dividend payments on certain hybrid capital securities, during the period from 31 January 2010 to 31 January 2012. This had the effect of preventing the group from paying dividends on ordinary shares, and you could not receive dividend payments until after January 2012 due to these restrictions.

"However, following an announcement made by the group on 27 February 2015, it was able to pay its first dividend since this time on 19 May 2015.

"Having reviewed [the reader's son's] account, we can confirm there is a bank mandate loaded, which was applied on 3 July 2002. This will mean [his] dividend from 19 May would have been paid directly into his nominated bank account. A tax voucher in relation to the associated payment ... was mailed following the dividend."

We suggest you check your bank records to confirm you received the dividend.

Disabled and shut out of his bank account

Q. My uncle is having considerable difficulty accessing funds in his Santander bank account. He now lives in the Republic of Ireland and is unlikely ever to return to the UK. He is disabled and cannot write letters and has difficulty in making phone calls. I handle much of his financial affairs, withdrawing cash for him on his bank card.

For months my uncle was unable to withdraw any cash from his account, until he was sent a new bank card. Then we were able to make three withdrawals – of £10, £300 and another £300. But then again the card was blocked.

Most Santander staff are sympathetic, but nobody can or will help. The bank will not take the simple step of calling him to offer assistance. There has been no attempt to address his disability-related needs and he now feels he will never get access to his own money – around £8,000. FK, Brighton

A. Santander has now agreed a better system with you. A spokeswoman explains: "We saw that large sums of money were being withdrawn in London which did not match [the reader's uncle's] spend pattern, so suspected fraudulent activity on his account and put a block on his card. We were unaware of the arrangement in place, but following conversations with both parties, we understand that [the reader] was withdrawing cash on [his uncle's] behalf.

"The terms and conditions clearly state that only the named account holder or holders are authorised to withdraw money ... and this account was solely in [the reader's uncle's] name. The security block was to protect his interests. We did not call to explain this, for which we apologise. We have now agreed that the best way forward is to add [the reader] to the account. We have also provided a gesture of goodwill [of £100] for the inconvenience caused."

Questions of Cash cannot give individual advice. But we'll do our best to help if you have a financial dilemma. Email us at: questionsofcash@independent.co.uk

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