Questions and Answers 

What has happened to the Dunfermline?

On 30 March 2009 a number of changes took effect:

• Dunfermline Building Society’s savings accounts and the majority of its residential mortgages were transferred to Nationwide.
• The remainder of the business has been placed into a Building Society Special Administration Process.
• Dunfermline’s lending to housing associations transferred to a company wholly owned by the Bank of England and has subsequently been purchased by Nationwide in July 2009.

Q How do I benefit from being part of the Nationwide Group?

A As you are now a member of Nationwide you benefit from the security of being part of the UK’s largest building society. The Dunfermline name – with its proud heritage – will be retained, and we will continue to operate a separate Dunfermline branch network. We will also maintain stand-alone products and services across all existing channels – branches, telephone and post. In the future, we will also look at how we can improve these products and services so that we can do an even better job of helping you with your financial needs.

Q Why were members not required to vote on this acquisition?

A These changes did not require your consent as a Dunfermline Building Society member because they were made under the Banking Act 2009 specifically to protect the interests of those Dunfermline Building Society customers who have become Nationwide members with effect from 30 March 2009.

Q Why did the Scottish Affairs Select Committee launch a report on Dunfermline Building Society and Nationwide?

A The Public Launch of the Scottish Affairs Select Committee report into Dunfermline Building Society and the NBS acquisition was in respect of previous management and regulation, prior to Nationwide acquiring the key parts of Dunfermline Building Society on the 30th March 2009.

The Dunfermline today is very different. As part of the Nationwide Group, the Dunfermline is stronger than ever with a sound capital base.

We will continue to offer a first class service and competitive products to the Scottish market.

Q Will the Dunfermline hold an AGM?

A All qualifying Dunfermline Building Society customers, as members of Nationwide, will be sent a Nationwide AGM pack in June of each year and will be eligible to vote in the Nationwide AGM. If you already qualify as a voting member with Nationwide Building Society you will only have one vote.

Q Can I use Nationwide branches?

A Dunfermline customers will continue to use Dunfermline branches, internet and call centres. Nationwide customers will continue to use Nationwide branches, internet and call centres.

Savings

Q Is my money safe?

A Your money continues to be protected by the Financial Services Compensation Scheme (“FSCS”). This means your savings remain covered by the FSCS to a maximum of £50,000 per individual or £100,000 for joint accounts.

Savings accounts can be accessed in the usual way. Nationwide Building Society is authorised and regulated by the Financial Services Authority.

Q I have accounts with the Dunfermline and Nationwide, are they both covered by the FSCS?

A If prior to 30 March 2009 you held savings accounts with both Dunfermline Building Society and Nationwide Building Society you will retain protection for up to £50,000 in each society, and up to £100,000 for joint accounts.

The FSA has extended, until 30 December 2010, its interim rules which allow separate compensation cover for customers with deposits in two merging building societies. The same extension has been made for customers of a building society which merges with a subsidiary of another mutual society, and for customers who deposits are transferred from a failed firm to another deposit taker where they already have an account.

This is good news for savers who opened accounts with the Nationwide, Derbyshire, Cheshire or Dunfermline building societies before their respective mergers and acquisition as they will retain £50,000 cover under the Financial Services Compensation Scheme (FSCS) for each brand. This means, if savers had money in all four societies before they joined, they would have up to £200,000 of savings fully protected by the compensation scheme or £400,000 fully protected for those holding joint accounts.

The FSA is also "committed to start another comprehensive review of the FSCS funding model this year and intend to consult in 2010/11".

Q Where can I find out more about the FSCS?

A More information can be found either by visiting their website at www.fscs.org.uk or by telephoning 020 7892 7300.

Q If I have a Credit Suisse account or an Aviva investment product, which I arranged through the Dunfermline, does this count towards the £50,000 FSCS protection?

A Any balances in accounts or investment products with Credit Suisse or Aviva (formerly Norwich Union) would not count towards your £50,000 limit with the Dunfermline. Money invested in accounts or investment products with Credit Suisse or Aviva is covered separately by the FSCS. Refer to the general terms and conditions of your Credit Suisse account or contact your Aviva financial consultant for more details.

Q Can I still use my passbook?

A Yes – it’s business as usual for holders of savings accounts. You should continue to use your Dunfermline passbook at the Dunfermline branches in exactly the same way as before.

Q What will happen to the regular savings I pay into my savings account?

A Any regular savings you pay will continue to be credited to your account in the same way as normal.

Q What will happen to direct debits and standing orders?

A Direct Debits and standing orders will continue to operate the same way as before.

Q How will this impact on my cash ISA with the Dunfermline?

A Your cash ISA will operate as normal. The tax-free status of your cash ISA is unchanged by the transfer to Nationwide Building Society.

If you’ve got a cash ISA with the Dunfermline, from 30 March 2009, Nationwide became your cash ISA manager. Apart from this, there are no other changes, the terms and conditions of your account remain the same and you can continue to operate your cash ISA as you’ve always done. If you’d like any further information, simply speak to our branch staff or call us on 0845 733 6688.

Mortgages

Q What has happened to my mortgage with the Dunfermline?

A It’s business as usual for mortgage customers. The terms and conditions of your mortgage or loan are unaffected by the acquisition by Nationwide. So you should continue to make repayments in the usual way.

Insurance

Q I arranged my insurance through the Dunfermline. Is it still valid?

A Yes. Your insurance cover is provided by a third party. Your premiums and terms and conditions will not change and any no claims bonus is unaffected. If you have any queries phone the number on your policy documents.

Should you have any further questions, please contact any of our branches, email comments@dunfermline.com or, if you have a telephone operated account, call Dunfermline Direct on 08457 336 688.