The Co-operative Bank – A little less customer led, a little less ethically guided

SparciaM

Why can't people actually manage their money nowadays?!?!

The whole idea of this forum and the moneysavingexpert website is to help people save money, learn how to budget and use their finances wisely.

Yet some people on this board, moan non stop about charges, about quoting legalities and claiming money back from the courts.

It's really really simple (like another poster said), just don't spend what you don't have. In a world now, where we have the highest debt ever, people need to realise that something needs to be done!

I've been banking since 1997 and have been charged ONCE for an overlimit charge, as I thought I had more on my credit card than I did. I've never been over my O/D limit and never had any unpaid DDs or SOs, so why can't other people do it.

I class myself as working class, and my monthly income is VERY low compared to some, but I was brought up that each month you caculate how much you've got and that is all you spend - you want something you save up for it. Simple as.

Yes, bank charges are high and shouldn't be there, but if they weren't there - don't you think more people would be having unpaid DDs, going overlimit, going overdrawn etc?? Wouldn't it make more debt - as these charges as supposed to be a deterrent as well - stop someone from making the same mistake again.

With regards to ethical policies - charges have NOTHING to do with these. The ethical policies of the Co-op are set by the people about where their money is invested, what type of companies bank with Co-op etc, NOT on how much the bank charge. Remember the Co-op group is still a commercial organisation that needs to make money, BUT also remember that this money made goes back to the company and the consumers, NOT the shareholders or gives payrises.

moneysavingwhataluxury

SparciaM, what ridiculous comments. They show that your life has always gone the way you want it to. You have been banking since 1997, which implies you are still young and the comments you make show that life hasnt thrown you any serious blows as yet. Maybe you shouldn't take your ability to "manage your money" for granted.
Not everybody gets into financial difficulty through bad management.
Eight years ago, I was successfully self employed, nice house, nice car, holiday home in Spain. My bank accounts had never defaulted, neither had my credit cards, I was managing my finances well!
One day when i was enjoying the sun, driving my nice car to the beach from my nice holiday home my car had a blowout and i ended up going 50 feet down an embankment off the autovia and breaking my neck in 3 places.
My finances were well managed enough to keep paying my bills, but i was unable to work and make any more income. My outgoings and lack of income meant i had to sell my nice holiday home, nice car and after a few years of not being able to work i could not keep up the payments on my credit cards and home. I lost them all as well as my normal life, job, house, car, holiday home, ability to walk and eventually my wife!!!
Now i am in receipt of state benefits, the debts have not disapeared and the goverment are pushing people on state benefits to have them paid into bank accounts. On several occasions the banks have charged me £38 a time for unpaid direct debits. On some occasions the bank has charged £38 for a £12 direct debit which they did not pay, it is not like they honour the direct debit, so in effect they are charging £38 for sending out an automated letter. £38 is 50% of my weekly income.
You mention having credit cards and being charged once for being over your credit limit. You thought you had more on your card, what happened to your money management? Why was your card over the limit, where you spending money you didnt have?
Businesses can invest and borrow huge amounts of money based on their cash flow, where do the banks get their cash flow, from their customers, they make money from that without their ridiculous illegal penalty charges. Modern technology can transfer funds in milliseconds and yet the banks still take 3-5 days and often more to clear cheques the same period of time as in victorian banks, they are borrowing our money and making investments and profits on the strength of it, they dont need to steel money.
Dont assume that everybody with money difficulties is some layabout who cant control their finances and be thankful for your health and the ability to earn money. The banks are making millions of pounds from people at the bottom of the financial ladder while the fat cats get fatter. Wake up and smell the coffee.

lamb7994

The co-op hasn't done anything wrong they've followed the banking code by letting you know.

At the end of the day they have everyright to charge you if you try to spend money people haven't got.
If people manage their money well you won't have to worry about the charge.

James

Quietgirl

Hello there,

I was once financially irresponsible and it lead me to bankcrupcy. I am on a low income, a working single mother. I started taking care of my money after the bankcrupcy and have learnt to live without credit. I find more satisfaction in saving for something rather than buying it on a credit card. The best thing for me financially was finding this website, I've saved a fortune by changing suppliers of different things and haggling. Stopped smoking, (did that in December 05), and purchased myself Microsoft Money. So I know exactly were I am with my money right down to the penny.

I have a Coop Cashminder account, I have been happy with it. I know exactly were I am financially as I consult Microsoft money everytime I want to spend something LOL the only thing that bothered me was that Coop would not let me open any savings with them, which I am glad I didn't do because there rates are crap anyway.

My advice to anyone who thinks they might incur these charges is to sit down and look at your income/expenses and cut your cloth accordingly.

tellyerworraldowivyer

So, if the charfes are justified, why have the banks not been sucessful in challenging the charges. (or bothering to see a case through to the end)

ffs

dchurch24 wrote:

However, the OFT have let the deadline that they gave the OFT slip - the reason I think (and this is only my opinion), is that the Govt. are in a bit of a quandry after having put so much effort into getting peoples benefits paid directly to banks (maybe a more sinister reason for this than I first imagined) - the premise being that banking is free in this country.

I think you have really hit the nail on the head - and the evidence of this is that the Post Office Card Account is now due to be closed.