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Co-op Bank - Small Business STEER CLEAR
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carolef_3
Posts: 1 Newbie
I run a small business and we took up the Federation of Small Business offer of free business banking for life with the Co-op.
To be honest - they weren't great - it was a call centre and you didn't have a "bank manager" as such, and every month end the internet site would crash when I was trying to pay the supplies / staff etc
But it was free and we moaned but we put up with it.:(
We had an agreed overdraft of 10k (which we paid an arrangement fee for each year) and we never used it for years. Then the recession hit and we found we needed to use our overdraft.
It was then that we received a letter from the bank saying - in effect - that since we had used the facility for quite a few months, we couldn't have it anymore, and they were reducing it by £500 a month. In other words - in time of greatest need, when everything was stacked against us we had to find £500 a month which we didn't have - to pay back the overdraft which we had paid for for several years and never used.
There was no money to do this and had it not been for our very pro-business manager at the Nat West, this action by the co-op would have put us out of business and 4 people within the business out of a job. :mad:
We immediately moved our account to another bank - Nat West - who were happy to give us a similar overdraft and began to pay off the other. For 19 months we kept up the payments every month. In July I ruptured my achilles tendon and was off work for some weeks immediately followed by a 3 week holiday - to recuperate further - visiting family abroad (paid for by said family). I forgot to schedule a payment to the Co-op for the last £450. I received several unpleasant phone messages on my mobile, which I was trying not to use (due to cost).
In the end I rang them - from abroad - and said i was unable to deal with this until my return to the UK today. The guy at Co-op - Rhys - said - thats fine.
Today he called me and asked me for my suggestion as to paying the remainder off. I suggested paying £250 today and the rest next month. He said that was not acceptable since he had already waited too long and it had to be paid at once or he would send me a 7 day letter - in an attempt to close my business down.
I couldnt believe the arrogance of this man - who has obviously never run a business or employed others - who would threaten to close my business down for £200, when many thousands of pounds have gone through that account over the years, the overdraft was repaid in the manner demanded by them, and only one payment had been missed - and for genuine reason. That is not an excuse for not paying the last payment. I should have done it, but I am only human and I was really thrown by my injury - and unable to get into work for a while. I think his response was way out of proportion to my "crime" - and that is how he made feel - that I was a lowlife, deliberately trying to rob the mighty Co-op of their much needed £200 (the amount I suggested we would pay in September).
I told him we would make the full payment today (which we have) despite this meaning that it will come out of our pay for the month (due tomorrow), and told him to stick his account (I did not complete the end of that sentance despite wanting too very much).
I willl never use the Co-op bank again, and I will tell as many people as I possibly can to be very careful and avoid using them if possible. For a so called "ethical" company, their treatment of a small business and a previously loyal customer with an impeccably run account (up till August) was absolutely despicable.
They showed absolutely no business acumen, no concern for the welfare of the business or its staff and no interest in reaching a mutually beneficial solution - it was their way or the high way. They would rather put a business out of business and sacrifice the jobs of 4 people than risk waiting a couple of weeks for £200. How pathetic are they?? And their service is really poor anyway - crashing web sites, inability to speak to the person more than once - always getting a call centre operative. Not what you need when running a business. You need a bank manager who knows you and understands your business and wants to support you.
Watch out - beware - you get what you pay for - and the Co-ops free business bank account is definietly worth what you pay for it - ie nothing.:(
To be honest - they weren't great - it was a call centre and you didn't have a "bank manager" as such, and every month end the internet site would crash when I was trying to pay the supplies / staff etc
But it was free and we moaned but we put up with it.:(
We had an agreed overdraft of 10k (which we paid an arrangement fee for each year) and we never used it for years. Then the recession hit and we found we needed to use our overdraft.
It was then that we received a letter from the bank saying - in effect - that since we had used the facility for quite a few months, we couldn't have it anymore, and they were reducing it by £500 a month. In other words - in time of greatest need, when everything was stacked against us we had to find £500 a month which we didn't have - to pay back the overdraft which we had paid for for several years and never used.
There was no money to do this and had it not been for our very pro-business manager at the Nat West, this action by the co-op would have put us out of business and 4 people within the business out of a job. :mad:
We immediately moved our account to another bank - Nat West - who were happy to give us a similar overdraft and began to pay off the other. For 19 months we kept up the payments every month. In July I ruptured my achilles tendon and was off work for some weeks immediately followed by a 3 week holiday - to recuperate further - visiting family abroad (paid for by said family). I forgot to schedule a payment to the Co-op for the last £450. I received several unpleasant phone messages on my mobile, which I was trying not to use (due to cost).
In the end I rang them - from abroad - and said i was unable to deal with this until my return to the UK today. The guy at Co-op - Rhys - said - thats fine.
Today he called me and asked me for my suggestion as to paying the remainder off. I suggested paying £250 today and the rest next month. He said that was not acceptable since he had already waited too long and it had to be paid at once or he would send me a 7 day letter - in an attempt to close my business down.
I couldnt believe the arrogance of this man - who has obviously never run a business or employed others - who would threaten to close my business down for £200, when many thousands of pounds have gone through that account over the years, the overdraft was repaid in the manner demanded by them, and only one payment had been missed - and for genuine reason. That is not an excuse for not paying the last payment. I should have done it, but I am only human and I was really thrown by my injury - and unable to get into work for a while. I think his response was way out of proportion to my "crime" - and that is how he made feel - that I was a lowlife, deliberately trying to rob the mighty Co-op of their much needed £200 (the amount I suggested we would pay in September).
I told him we would make the full payment today (which we have) despite this meaning that it will come out of our pay for the month (due tomorrow), and told him to stick his account (I did not complete the end of that sentance despite wanting too very much).
I willl never use the Co-op bank again, and I will tell as many people as I possibly can to be very careful and avoid using them if possible. For a so called "ethical" company, their treatment of a small business and a previously loyal customer with an impeccably run account (up till August) was absolutely despicable.
They showed absolutely no business acumen, no concern for the welfare of the business or its staff and no interest in reaching a mutually beneficial solution - it was their way or the high way. They would rather put a business out of business and sacrifice the jobs of 4 people than risk waiting a couple of weeks for £200. How pathetic are they?? And their service is really poor anyway - crashing web sites, inability to speak to the person more than once - always getting a call centre operative. Not what you need when running a business. You need a bank manager who knows you and understands your business and wants to support you.
Watch out - beware - you get what you pay for - and the Co-ops free business bank account is definietly worth what you pay for it - ie nothing.:(
0
Comments
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I am sorry you have had a bad experience with the Co-op, mine on the other hand has been fantastic. They recently changed their online banking and it is much easier to use and far more secure than their old system. It never crashes!
Sure, I get to talk to a person in the bank in Skelmersdale - at least they are not in India and don't follow a script!
If you were having so many problems as you claim why didnt you speak to the FSB as they are only too happy to help if you have a problem with the Co-op.
Realistically, the Co-op were wise to reduce your overdraft, if you have had an overdraft of £10K that you haven't used then it makes sense to have a lesser amount because you obviously didnt need it.
Before joining the Co-op, I banked with Lloyds TSB and I was supposed to have a manager but I never saw them and instead had to phone a call centre who then put me through to the business banking section and again I never got to speak to my manager - never met her either. Their bank charges were astronomical and when I wanted to move to the Co-op they tried to charge me £30 just to withdraw my money. High Street banks suck!0 -
Obviously we do not know the full details of the matter but if you feel you have been treated unfairly then a complaint to the bank may be worthwhile.
You might first want to look at the Lending Code, and cite why you think they are relevant. Rules 178, 181 and 219 seem relevant.0 -
Realistically, the Co-op were wise to reduce your overdraft, if you have had an overdraft of £10K that you haven't used then it makes sense to have a lesser amount because you obviously didnt need it.
I think the OP's point is that they didn't use it for years, and paid a fee for the privilege, and then when they did need it and use it, it was reduced month by month - like the OP says at their time of greatest need0 -
The fee should reflect your needs. It seems not to have been appropriate to you. A number of failings in the service charged for warrants a letter of complaint.I think the OP's point is that they didn't use it for years, and paid a fee for the privilege, and then when they did need it and use it, it was reduced month by month - like the OP says at their time of greatest need
Sorry this is the COOP but all are the same they have hidden every commonsense need in jargon and wait for their bounty. A charge on assets is the business they are in- not banking. Let your supplier lend to you (with interest)-- not the bank!0 -
And who lends to the supplier?0
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