MSE News: Millions of Lloyds customers to get letters about Co-op switch

matttye

Heng_Leng wrote: »

Did they not just change the sort code from 72-50-0x to 09-01-3x?

I think that's his point.

Hazzanet

Yeah - the sortcode changed.

LTSB group have several ranges now, Halifax with the 11- range, Lloyds with the 3x- range and the old TSB with the 77- 78- range so who/whatever takes this on will likely inherit a mish-mash of sorting code ranges.

It's likely that, for future simplicity that the 'sold off'/'floated' branches will, at the very least, be merged into a new range of its own, or if inherited by another company, merged into their own existing range. If the latter, the account numbers may have to change (for example, Co-op have gone down the route of using centralised sort codes which means that existing account numbers might not be compatible if they want to pursue that method of allocation).

Santander clearly didn't want to keep two ranges going, so moved the A&L customers from the 72- range into the existing (former Abbey) range 09-.

pqrdef

But TSB will subcontract its back-office work to Lloyds, so the migration in this case is only nominal. The accounts will continue to run on the same systems as now, which already cope with the mish-mash. TSB will just be yet another skin on the Lloyds/Halifax/BoS website.

In fact the eventual plan is for the Co-op Bank to abandon its own half-baked and outdated systems, instead of updating them, and migrate its own customers onto Lloyds systems.

Hazzanet

pqrdef wrote: »

In fact the eventual plan is for the Co-op Bank to abandon its own half-baked and outdated systems, instead of updating them, and migrate its own customers onto Lloyds systems.

I heard this too, but as Co-op is a clearing entity in itself, why wouldn't it bring the BACS clearing in house?

I'm not a fan of the LTSB platform myself; I heard that the co-op had pretty much abandoned the move to Finacle but I think a wholesale adoption of the LTSB platform would be a mistake. My understanding is that it is based upon the old TSB system which was streets ahead of Lloyds before the merger, but having being hit by the mysterious CPD99 in the past (I was a former Lloyds customer before the merger and left in 1999 when I had problems with them and their bizarre decisions), I wouldn't want to suffer from the same problem with my accounts at the Co-op, where I have been happy for many years.

Thrugelmir

The Co-op's weak capital position suggests its proposed take over will fall by the wayside.

More likely that Lloyds will float the entity as a new bank later this year at the current time.

Perhaps then there'll be a reverse take over of the Co-Op's finance arm with either a new partner or a retail capital issue to fund it at a later date.

pqrdef

Perhaps the Scottish government will buy TSB. They're going to need a bank.

Of course the Treasury could always do the right thing, give LBG its shares back and take HBOS off LBG's hands.

But there isn't much time now to call a halt to the Verde nonsense before it goes too far.

opinions4u

pqrdef wrote: »

Of course the Treasury could always do the right thing, give LBG its shares back and take HBOS off LBG's hands.

From a high street competition perspective that's a decent shout.

But remember it was LBG who chose the branches to get rid of. BoS and Halifax were seen as the ones to keep. Better premises. Better locations. More potential in the customer base.

Don't forget C&G branch customers either. They're being rebranded TSB and getting access to a wider range of products. This move could reinvigorate their branches which are a bit of a throwback.

System

Why would the Scottish government want a commercial bank with the majority of its branches (to be) outside Scotland and doesn't even print Sterling banknotes?

HBOS doesn't exist as standalone entity as such to "give back"; it would need a Verde type project to separate out BOS etc. It's unclear what would happen to Halifax as it doesn't even have it's own banking licence.

pqrdef wrote: »

Perhaps the Scottish government will buy TSB. They're going to need a bank.

Of course the Treasury could always do the right thing, give LBG its shares back and take HBOS off LBG's hands.

But there isn't much time now to call a halt to the Verde nonsense before it goes too far.

Thrugelmir

pqrdef wrote: »

Of course the Treasury could always do the right thing, give LBG its shares back and take HBOS off LBG's hands.

HBOS remains the problem area of the group. Last 10 years declared trading profit of HBOS amounts to around £200 million.

marlewuk

as far as im aware, to stay with lloyds if your branch is being sold off - is to close the existing account, and reopen at a branch which isnt part of the proposed "deal".