Co-operative Bank Credit Card Automatic missed payment phone calls

Tolkny

By an oversight I missed a minimum payment of £7.00 the first time I used my account after a reissue following it being fraudulently used several months ago.

I previously had the account set to make an automatic minimum payment by Direct Debit but presume this facility had expired or been overlooked when the account was re-established following the fraud, with which they dealt with excellently.

I am a member of The Co-operative Society, have a £17,500 Credit Limit, and have banked with them for at least 20 years. I have my pension paid in monthly to my current account and have a very good management record of both by current and credit card accounts.

Several years ago, by a different organisation I had my home phone corrupted so that without my knowing it made a number of premium rate calls and cost me about £30-£40, which BT managed to use the small print of their contract to avoid refunding and consequently lost my business. I am now very alert to suspicious phone calls.

Yesterday, I had a call, from a machine, claiming to be Co-op bank, which I just hung up. I phoned Co-op and was very sad to discover the automated call had come from them because I missed the payment, about two or three days earlier. They had not first written and presumably made no assessment about whether I was likely to default. Coincidentally I had discovered the missed payment the evening before and made it, but it would not have reached the account yet.

I refused to enter into a formal complaints procedure but understand the Co-op make these auto calls in regard to Credit Cards and fraud problems(That is particularly astounding and did not happen when my account was defrauded). I asked that my comments be recorded and I be wrote to about the policy in due course.

An hour or so later I had a further two auto calls, both of which I cut off. I then called the number, presuming it offered a direct line to Credit Card Dept. I was automatically answered but did not speak, eventually the phone asked if I was (me) using my name, I definitely did not answer. Eventually I got through to a person, who wanted to deal with the missed payment, but I refused, it seems that the person I had previously spoken with had not even referred my earlier call to the Credit Card Dept so the auto calling could be switched off.

I said by announcing my name they were telling someone that they knew me, and consequently making fraud possible. The phone number could have been accessible (say) to colleagues or lodgers or even crooked relatives. The woman told me the system had been tested, at no point did I get an apology and again asked for my comments to be recorded and I contacted by letter about this policy which I am considering reporting direct to the Directors in my capacity as a Society Member, because I think making auto repeated calls to people in debt and probably living under stress is simply likely to add to that stress.

If they are to use such a system, they should at least get approval from customers to do so first or at the worst should alert customers prominently, that this might happen.

If Co-op do it I am sure others do as well. Comments are welcome. I think the practice should be outlawed.

michael1983l

It is common practice amongst banks now to call people when behind, repeatedly. The Co-op are actually in general a great bank I am suprised they use these tatics.

Tolkny

Yes, I agree Co-op are by comparison very good. I hope they can be persuaded to change this policy and hope this forum can help.

Tolkny

aron wrote: »

I agree. .... They should not be contacting customers at all when a payment is missed and i hope the FSA take them to the cleaners.

...only if it advances matters. I hope my serious point is not missed and some more opinions are offered.

I would be particularly interested to know how widespread this practice is, and especially if there are any major financial institutions who do not use this practice or who have had consequential difficulties including media and Regulator comments.

ElkyElky

It could actually be a good thing that they call and tell you about the missed payment. They can't just very well ignore the fact that the customer has broken the terms and conditions of the product.

If you hadn't of known, the consequences could have gotten more severe with more charges, interest rate increases and damage to your credit file.

Tolkny

ElkyElky wrote: »

It could actually be a good thing that they call and tell you about the missed payment. They can't just very well ignore the fact that the customer has broken the terms and conditions of the product.file.

Of course, but not with an automatic phone call, that announces my name when I do not speak.

Surely a letter in the first instance is suitable but only after an assessment of the seriousness of the missed payment with regard to the customers record of past account management.

Secondly, for people genuinely in financial difficulty, repeated (I had 3 calls in a morning) automatic impersonal calls are likely to addto the stress rather than ssist with solving the problem.

duggie1982

Some people might be glad to get the phonecall to remind them they missed a payment rather than having to wait on the letter comming out. I do hate the recorded calls though.