MSE News: Co-op & Smile latest to raise overdraft rates

Not only are smile and Co-op raising their overdraft rates they are also changing their personal bank account enquiries telephone number from 08457 212 212 to 08448 44 88 44 meaning that I'll be paying 5p a minute plus set-up charges. What gets me is that I pay £5 extra a month to my phone provider to enable me to ring smile on an 0845 number for "free" - but not 0844!


Don't make old people mad. We don't like being old in the first place, so it doesn't take much to p*** us off.

A few years ago I had had enough of the mainstream banks, and liked the co-op's ethical stance, and the free business banking for FSB members, so I thought I'd give them a go.
I moved my personal account to Smile, and my small business account to the Coop.
Unfortunately although ethical I have had no end of problems, e.g.:
- failing to set up/amend SOs and DDs as instructed
- sending messages via Smile's online service that were not replied to (and you cannot see a copy of messages sent - copy and paste a copy for your reference before hitting send)
- their online business banking system initially kept failing - apparently the design meant that it was guaranteed to fail with more than 130 users on at a time. It is finally robust, but very limited with what you can do
- the coop can only take instructions for transfers in Euros or other currencies by fax or by post, or I can drive an hour to my nearest branch
- repeated delays in making foreign transfers - I found I had to phone up the next day to make sure it had happened
- their anti-fraud people stop transactions without trying to get in touch with you first of all
- as with most banks, they are too ready to charge you for the slightest transgression but refuse to accept liability for any mistakes they make. Eventually you have to get angry with the 1st line staff to get put through to a manager to get them to admit a mistake and give you some compensation for it

They are also excessively averse to providing any loan or overdraft facility - you have to have an impeccable record of regular money coming in otherwise they will turn you down no matter what. I once needed a £2000 overdraft to tide me over until a customer (government) payment of £100 000 came in and I was still turned down by them.

I would say that their level of service has also declined since the merger with Britannia.

So give them a go but be aware that they have their shortcomings.