Co Op to stop basic accounts for BR

coinxoperated

I have a co-op cash minder account that I opened back in January prior to a DRO in March....

Does this mean I will need to 'complete some forms' or will I be at risk of them shutting my account?

Made me so worried!!!

PippaGirl_2

So is the cashminder account still available after Monday for new customers that aren't BR? If so surely anyone can open an account which makes them an existing customer and then if they go BR it is all fine? So as long as you open the account pre-BR this will make no difference?

PippaGirl_2

I have to say I don't blame Co-op for this. They don't get a penny from me for running my account, so they are doing it free. How can they do that for so many people?

sniggings

PippaGirl wrote: »

I have to say I don't blame Co-op for this. They don't get a penny from me for running my account, so they are doing it free. How can they do that for so many people?

most banks have accounts that don't charge to use, they get their money by loaning out the money in your account.

OutofDebt-NOT-OutofDanger

sniggings wrote: »

most banks have accounts that don't charge to use, they get their money by loaning out the money in your account.

Guess that's part of the problem - most BR don't have any excess money!

The only other way for a bank to make money is by getting a customer into debt and strangely they're not keen to do that with BRs either!

sniggings

OutofDebt-NOT-OutofDanger wrote: »

Guess that's part of the problem - most BR don't have any excess money!

The only other way for a bank to make money is by getting a customer into debt and strangely they're not keen to do that with BRs either!

Even loaning out your wage each week will make them loads, just by the sheer numbers involved.

I think the real answer is they know that a BR will not be getting any credit cards, loans, a mortgage anytime soon, this is really where a bank makes it's money, so I think it would be truer to say it's not that BR cost them money to run the account but that they won't be making much of them in the future, a bank hopes to keep a customer for many years, in the first few they don't make much but are willing to hold on until they get their first mortgage, loan etc

alastairq

More than 10 years ago, even the great-and-glorious-Barclays had a publicised sales policy of trying to 'get rid of' any customers who had banked with them for a long time.

Thus, loyalty was rewarded by getting dumped, or made to feel unwanted.

Simply because, long-service customers didn't bring in much, if any, profit for the bank.


Co-op have apparently long believed in the maxim of 'sprat-to-catch-the-mackerel sales pitch...ie treat a basic customer right, and they come back for other things.

Up until now, that is.

PippaGirl_2

I'm reading the Co-op press release thing-ama-jig as meaning as of the date of change (Monday 17th) any existing customers can have and use a cashminder account if they go BR. But anyone becoming a Co-op customer after that won't be able to use (or maybe even have?) a cashminder account and be bankrupt. If that's the case then it will be no good opening a Cashminder and then going BR if you weren't a Co-op customer before the 17th Sept?

Stepup

I'm not surprised. Co-op will not even give you a chance to prove yourself after br. They put markers against your accounts.

You have to jump through hoops for a savings account. You can't upgrade to a normal account.

Even other banks will take you on for a full account. With clean crfs a few years after. Not co-op.

After all the problems with the card and the hassle they gave me trying to open savings. I went to Barclays. Instant proper bank account. Cheque book. Overdraft and reserve. I now have a standard barclaycard.

Barclays earn nicely off my money going in. Having money sat in my account. The fees from the retailers, where I use my classic bc and pay it off. The nominal fee for my account. My savings. My Isa.

I know people will think Barclays are the devil. But because of them. I have a chance to manage a full mainstream bank account, a mainstream credit card. Thus proving myself worthy and rebuilding my life. Something the coop wouldn't help with at all.

I've never understood people blindly staying with them for 6 years. When they won't upgrade your account. Ride it out with a basic Barclays account. Clear up the credit files and upgrade accounts once discharged.

Another backwards move. By a supposed ethical bank.

PippaGirl_2

Stepup, how long after discharge did you get a normal bank account with barclays? Do you think someone could hop across from Co-op cashminder to get a normal barclays account or do you think you'd need a Barclays basic and then upgrade it?