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Agent's fury over Nationwide 'gagging' on agency closures

26 November 2010
Written by rosalind renshaw

A furious estate agent who currently operates one of the Nationwide agencies from his premises has said that he – and others – are being bound by ‘gagging’ rules that have nothing to do with the public interest.



He accused the mutual of behaving disgracefully.

The agent claims he had to sign up to an agreement promising his loyalty and that he will tread the official line on the reasons for the closure.



The agent said: “We were even given a script so that we could give Nationwide’s official answers to the customers, rather than voice our own thoughts.”



The agent claims that his “loyalty” is being bought in exchange for payments extending into next year. He was told in September that the Nationwide agency would close on the last day of December. He says that he was cited ‘strategic’ reasons.



However, because Nationwide is contractually bound to give six months’ notice, it will continue to pay its agents for the first three months of 2012.



He said he could not afford to risk his last payments, even though he had every sympathy with his customers.

“The local community here is disgusted,” he says. “When we close, the nearest Nationwide branch will be five miles away, with all sorts of parking and access issues.

“We have been Nationwide agents for 15 years or so and grossed them £18m a year. We handle over 3,000 entries a month.

“Unfortunately, Nationwide tell me they do not care about customers in their local community or giving them a service  – they are only interested in getting them to use the internet.

”

Nationwide has said that it is axing its agency branches for cost-cutting reasons. But the agent said: “I do not believe this. We have delivered them what must be a profitable service for many years, and apart them supplying from a bit of furniture and IT, we bear all the costs of providing it.



“I believe the only cost savings will be in making the head office estate agency team, of about 12 people, redundant. I cannot think that this ‘cost saving’ will make sense for some years.”



The agent said the service had netted him between £50-£60,000 a year, but out of that, he paid out about half in staff costs.

He has already had to tell his team of part-time cashiers that they will be made redundant. He will also have to face costs of refitting his premises once the Nationwide counter has gone.



He said: “I think it is a crying shame and a disgraceful way for a mutual to behave.”



A spokeswoman for Nationwide said: “This decision was reached after very careful consideration. We recognise the long-standing relationships many of our agents have with our customers and we thank them for their loyal service to Nationwide over the years.

“During these difficult times, every penny that we spend on unprofitable activity stops us returning value to our members in the form of better rates and products. Regrettably, it is no longer sustainable for us to operate an agency network which 95% of our customers never use.

“

The agency network consists of 130 small outlets located in third party premises, such as estate agencies or solicitors’ offices. These outlets, located across the UK, are managed by non-Nationwide staff and offer a limited, predominantly savings based, counter service.

“As you would expect with any third party relationship, there is a contract in place between both our agents and Nationwide and, as part of this contract, both parties have agreed that details of the business relationship remain confidential. We are in continual discussions with our agents and have an agency support team in place across the UK as a local contact for these businesses.

“We appreciate the effect this decision will have on some of our customers. However, we have a wide range of ways in which they can access our products and services, including a large network of 700 branches across the UK. In addition, we have full service telephone and internet banking and saving offerings, all of which are increasingly popular with customers of all ages.”

Comments

  • icon

    Jake,

    I suspect you are not aware that the lenders are very much interested in dealing with EA’s mortgage brokers as proven by the ‘Business Development Managers’ constantly spending time promoting various products.

    The decision to cut the agencies they have in EA branches in on commercial grounds more in line with Adam Smith’s comment. Sadly the true negative effect of these closures will be on the customers that prefer traditional over the counter banking such as older customers.

    Many EA offices in small towns and villages are very much part of the community and staffed by local people, these changes have a similar impact to some residents of a town as a post office closing and are yet another example of the changing face of our high streets rather than an opportunity to make ill informed comments

    • 29 November 2010 09:35 AM
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    We all need to move with the times. If there were a profitable niche for another Building Society to fill surely they would. Internet and ATM banking without the warm, friendly happy face is more profitable. We are living in a fast paced automated world now and need to adapt with the change.

    • 28 November 2010 16:11 PM
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    Sounds to me like the Naionwide prefer not to be associated with the estate agency profession any longer, can't blame them can you....

    • 28 November 2010 12:53 PM
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    its always the corporates who have agencys! as one comment pointed out and very true to......they are not good at selling houses so they have to boost the income some how...perhaps more will close as the cull continues.

    • 27 November 2010 07:50 AM
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    Jonnie, amuse us with some more tales of your friends lives. Pretty please. I need cheering up, I'm working tomorrow, my diary is blank and I shall be working with our saturday lady who clearly is an alien as she doesn't ever stop for breath during her 100 mile an hour rants about the school run. Paula

    • 26 November 2010 14:38 PM
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    ………quick bit for ‘Simple really’ – 3000 people, yes mate but 3000 that want to bob in and pay some money into their account / make a withdrawal, probably not 3000 individual people strolling in for a chat.

    But for the sake of a discussion lets say he’s got 3000 (unique) customers coming through the door, that’s a 120 (ish) a day Monday to Friday, well if they all love the office and staff then tell them all the truth and the fees the ‘relationships’ will generate will more than compensate a few quid from Nationwide over 3 months or so, on my sums 10% of them selling through him could keep him in fees for 2 years

    Going back to the comparison with my mate, it’s a bit like him having all her pretty mates wanting to sleep with him so even more reason not to care what she /they say.

    Also you sound cross – are the words in capitals you SHOUTING?

    Jonnie

    • 26 November 2010 14:14 PM
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    Another class anecdote from Jonnie. What would we do without him. Paula

    • 26 November 2010 11:15 AM
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    system not working?? my post is a compliment to Jonnie

    • 26 November 2010 10:59 AM
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    Best piece I've read on here for ages. Well written and spot on !!

    • 26 November 2010 10:57 AM
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    Best piece I've read on here for ages. Well written and spot on !!

    • 26 November 2010 10:56 AM
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    Odd one,

    Ive never know an EA office with an Building Society Counter that does really well at actually selling houses so I think im going to get myself in a bit of bother here but ill try and put it over in a way that doesn’t offend the lot that have a counter in their branch…………here goes.

    Mate of mine was married to an absolute cow, she was a flippin tyrant, ugly as well, never let him go out and he always had to work within her rules and he didn’t really get much from the relationship but he was a spineless berk and should never have married her in the first place.

    Anyway, she decided she was leaving him for some bloke at work she’d been banging about with but she wouldn’t let him tell anyone why they were splitting up and he was such a prat he went along with it and the family and us lot didn’t find out why they had split for ages.

    So the moral of this story is, if you are desperate enough to marry an ugly horrid bird when she finally does you a favour and sods off, don’t let her tell you what to say, help her pack and send her on her way. Or even better don’t get into a pointless relationship in the first place, you can do better.

    Jonnie

    • 26 November 2010 10:51 AM
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    Reply to 'What??' Oh bless, can't you make the connection? (Must be a corporate). Let me spell it out for you. The article begins 'A furious ESTATE AGENT who currently operates one of the Nationwide agencies from his premises...' and then goes on to say he handles 3000 entries a month. That means up to 3000 people come into his ESTATE AGENCY branch EACH MONTH -i.e. 3000 people who have a relationship with his staff, his branch office and his brand. So, 3000 LESS prospects per month walking through his door to possibly engage in conversation with regarding selling or letting a month engaging with his ESTATE AGENCY branch when the Nationwide Agency closes. Simple enough for you?!!

    • 26 November 2010 10:21 AM
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    This is an outrage! Nationwide spend millions over the years on sanctimonious ads, saying that because they're a mutual, they behave like saints. What a load of guff.

    When Mrs Harrison & I go back to Zog to see her parents, I get charged to take cash out of my Flexaccount now. It used to be free. Robbers.

    Anyway, there's a nice transport cafe on the A53 near Leek - I'm off to see if Dawn will sort me out with a nice sausage sandwich.

    • 26 November 2010 09:44 AM
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    I can't find the bit thats about estate agents??

    • 26 November 2010 08:32 AM
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    Te same happened to Sequence when they lost Halifax agencies in their North west locations, all cloak and dagger stuff

    • 26 November 2010 08:32 AM
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