Co Op to stop basic accounts for BR

fermi

ticktockclock wrote: »

I'm a new user so can't post a link but they do have an announcement on their web site.
google:
industry failure on financial inclusion forces the Co-operative Bank to review its basic bank account

http://www.co-operativebank.co.uk/servlet/Satellite/1347603516521,CFSweb/Page/CFSCtplStandard

Industry failure on financial inclusion forces the Co-operative Bank to review its basic bank account

• Bank calls for a level playing field with all providers, including new entrants, genuinely performing on issue of financial inclusion
• No longer offering Cashminder current account to un-discharged bankrupts*

In response to a lack of positive industry action on the issue of basic banking**, The Co‑operative Bank today announces a change to its basic bank account – Cashminder, for new customers.

With immediate effect (from September 17, 2012) the bank is no longer accepting new customers who are un-discharged bankrupts, this decision does not affect the bank's existing customers.

Explaining this change in more detail, John Hughes, Managing Director of Retail Banking at The Co-operative Bank comments:

"Across the industry there has long been an un-level playing field in the provision of basic bank accounts, with our bank doing far more than most*** and we have been calling for some time for this to be addressed.

Unfortunately it has now come to the stage where our disproportionate market share of the basic bank account market has continued to grow significantly, and regretfully, we now need to take steps to address this."

For a number of years now The Co‑operative Bank has been only one of two providers in the market who offer bank accounts to un-discharged bankrupts. Whilst the bank will no longer be opening new accounts for un-discharged bankrupts, it remains fully committed to working with existing customers who find themselves in financial difficulty.

Commenting further, John Hughes adds:

"The Co‑operative recognises the importance of access to a bank account to enable people to participate actively in modern life, this is an issue that we have raised persistently in an attempt to encourage all providers to act equally. As a responsibly led business, over the years we have worked tirelessly to promote access to banking, for example by providing bank accounts to some of the most financially excluded groups such as prisoners, as we do believe that banks should play their part in offering people a fresh start.

However it is now time that all providers acted equally on this issue. Whilst we have had to make immediate changes to address our disproportionate market share, we remain committed to financial inclusion and are willing to lead the way in calling for current account providers, consumer groups and policy makers to work together to introduce a sustainable approach for basic banking that provides consumers with access to appropriate accounts and services.

Looking ahead we will closely monitor the industry to strike a balance between our commitment to tackling financial exclusion whilst also ensuring we operate in a sustainable manner that maintains our competitive position as a genuine alternative in the market. If the market changes and measures are introduced to ensure that all account providers, including new entrants, genuinely perform on this issue, we will review our decision."

Notes to Editors

* Our definition of an un-discharged bankrupt is someone against whom a bankruptcy order has been made and who has not been discharged from bankruptcy. In most circumstances the customer is discharged after 12 months.
** Basic Banking refers to the provision of Basic Current Accounts, which are aimed at those on limited budgets who need to keep tight control of their finances and who don't require and overdraft or chequebook.
*** For a comparison of basic bank accounts, please visit:

ticktockclock

they are basically saying that it will not effect existing customers but as of Monday 17th they won't be taking anymore new customers that are undischarged bankrupt's.

They feel that as only one of two providers the distribution between banks of bankrupts has been unfair and is costing them money so until the other banks follow suit they will discontinue the service.

alastairq

Whilst the cynic in me is shouting'pressure applied from financial industry on Co-op'......I do think I must give Co-op the benefit of the doubt.

It really is about time the government were compelled to provide a basic bank account facility for every person over the age of 18.

I think this, because there seems to be no legal compulsion for an employer, essential-to-life power company, water company, or any other private enterprise [such as travel] that really ought to be nationalised in the interests of all the nation....to offer any other method of payment, either to, or from, the consumer/employee....that does not involve the services of a BANK!

[Try compelling your employer to pay you, in cash?]


And, no..I don't care about the increase in costs...that should be borne out of [obscene?] profits made.


The biggest enemy of our current social &economic system, IMHO, is Bankruptcy.

Because Bankruptcy allows an opt-out [eventually, and at a cost to the individual]...from a system which is invidious. [sorry if that's the wrong word, but that's tough...blame it on Education system.....and my grade one English O-level]

alastairq

Oh....and my solution to this issue is simple.

We now need to advise all those who are considering BR as an option [one could always simply sit back, and 'do nothing'...?].....to open their basic bank accounts....before..petitioning for BR.


So...in reality, the only individuals the above change -of-heart will seriously affect, are those who find themselves made BR by another.....and without realising.

[or those who we cannot raise their heads from the sand early enough to prepare?]



The above is a course of action I have always advocated, anyway.

churchill33

Sorry if I sound a bit dense, but we have just opened a co-op cashminder account in preparation for going bankrupt next month, will we still be able to use this account as we are an existing customer but not yet bankrupt?

curly04

I feel like closing my account down!
i've been with them over 3 years now since a few months before I BR

Wonder where else i could open accounts, dont want to go to Barclays, Santandar, Lloyds (as they are merging with the coop) err halifax are shockly bad, Natwest Stink!Err well does that leave anyone else?

Lou67

That is bad news

Tupperware_Queen

churchill33 wrote: »

Sorry if I sound a bit dense, but we have just opened a co-op cashminder account in preparation for going bankrupt next month, will we still be able to use this account as we are an existing customer but not yet bankrupt?

As you will be an existing customer you should be ok, just make sure you put on your forms that this is the account you intend to use for day to day use

richardvc

There is a certain irony that the institutions that have taken years making sure that we all have to use them whether we like it or not are now doing their damndest to make sure that certain sections cannot use them !!

1jim

I don't have a basic bank account but do bank with smile, Internet arm of coop, I have banked with them since the early days because of their stated ethical stance. This seems a backward step to me and I shall be telling them so.

It seems they want to force others into the market..... Doing this by withdrawing from the market is just odd. I really don't see how stopping offering accounts will make others jump in.

It really seems a shame that the coop has taking a stance that adversely affects the very people it claims to be aiming to help. I'm not sure how this fits with the statement of financial inclusion for all. Not really the ethical standards I have come to expect from the coop