Co Op and Lloyds To Merge?

Seadogs_2010

Hi all
Ive just read on the Internet that the Co-Op bank who I bank with is close to buying 600 Lloyds branches? If this goes through will the banks be linked together?
I ask as ive got a debt with Lloyds and I dont want them taking money from my co-op account if they merge, could this happen if they did come together?

Thanks for any help

opinions4u

It depends.

If your debt sits with one of the sale branches there is potential for right of set off to be applied in the future.

TheBanker

They are in negotiations, but nothing has been agreed yet.

If they were to merge, your debt might stay with Lloyds (why would the Co-op want to purchase a load of bad debt which may end up being written off?). In any case they would have to write to you if you were affected so I wouldn't worry just yet.

jonesMUFCforever

The CO-OP is trying to buy 600 odd branches of Ltsb.
EU directive - Ltsb have to get rid by end of 2013.

MoneySaverLog

Why should the CO-OP be able to "Cherry Pick" the accounts held at a Lloyds TSB branch that is being sold. Surely all the accounts held in said branches should transfer to the new owners, the good bad and ugly.

Assuming of cause CO-OP win the bid

TheBanker

MoneySaverLog wrote: »

Why should the CO-OP be able to "Cherry Pick" the accounts held at a Lloyds TSB branch that is being sold. Surely all the accounts held in said branches should transfer to the new owners, the good bad and ugly.

1) The Co-op can make it one of the terms of the sale. Lloyds might be happy to do this because if they include the defaulted accounts, the value they receive from the Co-op will be less.

2) The accounts may no longer be linked to specific branches but managed by a central collections unit.

3) Lloyds may have already written off the accounts meaning their value is zero on the balance sheet. In this case they may wish to keep them to recover whatever they can.

It's all speculation though, all the OP can do is keep an eye open for a letter in the post explaining.

fallen121

I am sure there are no plans for Co-op and LTSB to merge. As the previous poster stated, the Bank has been forced to sell the branches - known as Verde - by the European Commission following the Government’s bailout of the bank in the aftermath of the 2008 financial crisis.

The EU told Lloyds it had to sell around 632 of its branches, known as project Verde. The sale will include five additional sites providing telephony, banking operations and mortgage centre support to the Verde business. The sites are based in Gloucester, Livingston, Birmingham, Sunderland and Swansea. Around 1,400 employees in these sites will become part of the Verde business, joining around 5,000 branch staff.

If your Lloyds debt is located at one of the 632 branches being sold then yes, it will become part of the Co-op. If indeed the Co-op actually buys it. The position seems to flutuate almost daily. Anyhow, whoever buys it, the list is here:

http://www.web40571.clarahost.co.uk/general/VerdeBranches.pdf

But again, as a previous poster stated, many loans may be centrally managed by Lloyds and not be linked to any specific branch, in which case unless they form part of the 5 sites listed above they won't be transferring.

What is the address on your loan statement? That might be a clue.

Seadogs_2010

Thanks to the banker and fallen 121. The address I took the loan out at was Welton Road, Brough, East Yorkshire. I would have to look up the address on my loan statement. We shall see what happens. My loan and credit card account is currently with a debt recovery agency and I pay so much of a month

Mrs_Arcanum

I am curious. Surely if you bank with a particular Bank surely your money is held by that bank & not individual branches. Your branch is merely a convenient place for you to transact business. You could easily do your business with another branch of the bank elsewhere.

Or does this Verde mean if you would prefer to stay with Lloyds TSB or C&G you will be able to move your branch? Would seem somewhat unfair if you have a bad history with the Co-op to be stuck with them just because your personal branch is sold.

MoneySaverLog

AFAIK you can ask to move branch / open a new account with a branch of Lloyds TSB unaffected by Project Verde. However Lloyds are not allowed to actively promote this option.

As a customer you have the power of choice though. If you want to stay with Lloyds as opposed to whoever take over the sold branches you can do by moving / opening an account with a non sold branch.