Co op to pay switching penalties!!

semi

http://uk.news.yahoo.com/co-op-offers-pay-moving-penalty-085338553.html

jalexa

Interesting, but are they going to reimburse forfeited "deferred discount":eek:?

Premier_2

Looks like a good marketing ploy. A much better way (from their point of view) than enticing people to switch to them with the traditional cashback route.

And they stay in total control. They will only repay upto £100 of fees incurred (ok, that covers most instances I would suggest) but it's limited to the first 10,000 applicants who switch. You don't know which number applicant you are and of course only a small proportion of those applicants are likely to actually incur exit penalties anyway.

Cynical? Moi? :cool:

jalexa

Premier wrote: »

You don't know which number applicant you are and of course only a small proportion of those applicants are likely to actually incur exit penalties anyway...

That's interesting. You spotted something I think I missed. I assumed there were 10,000 rebates on offer but as you suggest that is not what the article states "literally". ("The offer is limited to the first 10,000 customers who switch from a fixed term contract to Co-operative Energy..." )

However I'm not sure I go with your "only a small proportion...". I would have thought that most consumers on a "fixed term contract" are liable for early termination charges.

Of course the conditions may have been written by moonlighting Halifax "£100 offer" staffers. Therefore "rubbish quality".

meggsy

The last time I checked they had 16,000 customers, we need thousands more to keep prices down

http://www.cooperativeenergy.coop/2012/01/21/co-operative-energy-calls-for-industry-to-waive-exit-penalties-on-fixed-price-tariffs-and-promises-to-pay-customers-fines/

I would have lost £140 to switch from npower to Coop before the end of my contract.

meggsy

jalexa wrote: »

Interesting, but are they going to reimburse forfeited "deferred discount":eek:?

Co-op email reply today advises, "it is only the actual exit penalty that Co-operative Energy will cover"