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Is the Co Op Bank really ethical and fair to customers?
PetePetePete_2
Posts: 18 Forumite
I changed over to the Co Op Bank as I was disillusioned with the other high street banks and their practices and ethics etc. However I am becoming more andmore frustrated with Co Op's customer service, or the lack of it. I cite the following examples:
1. When I changed over I filled in a Direct Debit instruction form so that Co Op could send it to my old bank and get all Direct Debits transferred. The guy who opened my account forgot to submit it. Also he did not inform me thatit would take a number of weeks for the Direct Debits to transfer. I thereforehad a month where all money was going into my new account but all direct debitswere coming out of my old one. Therefore a number of important monthly payments were not fulfilled (mortgage, carinsurance etc). No apology or compensation was offered, they merely referred to their terms and conditions.
2. Co Op’s IT department admit that their IT system is old and obsolete. In fact they are waiting to inherit Lloyds' IT system when the Lloyds acquisition finally goes through. It means that they cannot transfer money from some accounts instantly if you are using internet banking whereas other banks can do this as soon as you press enter. This is particularly relevant for paying credit cards. The credit card statement has a pay by date. However in reality you must transfer the money over 2 days in advance of this (even if you are paying from your Co Op current account) if the money is to reach the relevant account in time. If you do not do this then they charge you interest on late payments even though you have transferred the the money on time from another Co Op bank account in time but their system cannot cope with processing the payment. Strangely I can make payments from my Co Op cureent account to my mortgage account, and that happens instantaneously even though the mortgage is at another bank.
3. Following on from point 2, customer services managers have also admitted to me that bank does not actually suffer a loss if the payment reaches the credit card account late as the Co Op in effect already has it, but in another account. However they insist on charging interest on the late payment. Their argument is that the requirement is in their terms and conditions, but is that a reasonable argument when they are adapting terms and conditions as a way of getting round their IT problems? Why should I pay interest when the Co Op itself does not suffer a loss itself from the "late" payment and when it is their system which is inadequate and at fault? Is that ethical and fair treatment of their customers?
4. Most recently the Co Op bank says it is not possible to opt out of receiving paper statements. The reason being is that they are obliged to send paper statements by the FSA. I then telephoned my old bank and they confirmed they have green accounts where it is possible to receive statements by email only. The Co Op’s response to that was, you’ve guessed it, it is in their terms and conditions and they cannot do anything about it. The Co Op does not seem to realise that if something is in their terms and conditions, this is not a justification in itself. They were not prepared to discuss the policy from which the terms and conditions are derived. It certainly does not justify or explain why one bank can send statements by email, but they must do it by post. I thought all banks were regulated by the same FSA rules? If the Co Op has an ethical and environmental policy then why are they so inflexible?
I want to stay with the Co Op, but I question if their commitment to ethical and fair treatment of customers and to trading is as strong as they claim. I wonder if it is only me who is having these problems, or am I expecting too much?
1. When I changed over I filled in a Direct Debit instruction form so that Co Op could send it to my old bank and get all Direct Debits transferred. The guy who opened my account forgot to submit it. Also he did not inform me thatit would take a number of weeks for the Direct Debits to transfer. I thereforehad a month where all money was going into my new account but all direct debitswere coming out of my old one. Therefore a number of important monthly payments were not fulfilled (mortgage, carinsurance etc). No apology or compensation was offered, they merely referred to their terms and conditions.
2. Co Op’s IT department admit that their IT system is old and obsolete. In fact they are waiting to inherit Lloyds' IT system when the Lloyds acquisition finally goes through. It means that they cannot transfer money from some accounts instantly if you are using internet banking whereas other banks can do this as soon as you press enter. This is particularly relevant for paying credit cards. The credit card statement has a pay by date. However in reality you must transfer the money over 2 days in advance of this (even if you are paying from your Co Op current account) if the money is to reach the relevant account in time. If you do not do this then they charge you interest on late payments even though you have transferred the the money on time from another Co Op bank account in time but their system cannot cope with processing the payment. Strangely I can make payments from my Co Op cureent account to my mortgage account, and that happens instantaneously even though the mortgage is at another bank.
3. Following on from point 2, customer services managers have also admitted to me that bank does not actually suffer a loss if the payment reaches the credit card account late as the Co Op in effect already has it, but in another account. However they insist on charging interest on the late payment. Their argument is that the requirement is in their terms and conditions, but is that a reasonable argument when they are adapting terms and conditions as a way of getting round their IT problems? Why should I pay interest when the Co Op itself does not suffer a loss itself from the "late" payment and when it is their system which is inadequate and at fault? Is that ethical and fair treatment of their customers?
4. Most recently the Co Op bank says it is not possible to opt out of receiving paper statements. The reason being is that they are obliged to send paper statements by the FSA. I then telephoned my old bank and they confirmed they have green accounts where it is possible to receive statements by email only. The Co Op’s response to that was, you’ve guessed it, it is in their terms and conditions and they cannot do anything about it. The Co Op does not seem to realise that if something is in their terms and conditions, this is not a justification in itself. They were not prepared to discuss the policy from which the terms and conditions are derived. It certainly does not justify or explain why one bank can send statements by email, but they must do it by post. I thought all banks were regulated by the same FSA rules? If the Co Op has an ethical and environmental policy then why are they so inflexible?
I want to stay with the Co Op, but I question if their commitment to ethical and fair treatment of customers and to trading is as strong as they claim. I wonder if it is only me who is having these problems, or am I expecting too much?
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Comments
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I don't see what your post has to do with ethics.
It seems more like a moan about systems.0 -
Why, if they are so bad?PetePetePete wrote: »I want to stay with the Co Op0 -
Just stumbled across a site that somehow assesses the ethical-ness of banks/BSs. If of interest: http://www.ethicalconsumer.org/buyersguides/money/bankingcurrentaccounts.aspx0
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opinions4u wrote: »I don't see what your post has to do with ethics.
It seems more like a moan about systems.
Yes, it is a moan about systems. But, that has consequences which they must be responsible for. I am actually questioning their ethics when they happily penalise their customers as a result of their own shortcomings.
Don't you think that is wrong when they claim to be adhering to the highest ethical standards?0 -
Why, if they are so bad?
Indeed, I ask myself the same question. But I cannot believe I have a choice of either banking with one of the big 4, or banking with an organisation which has out of date systems and bad customer service. What is more, the Co Op does not seem to be bothered to do anything about it at the moment becuase they are getting so many new customers who are defecting from the big 4.
My question therefore is does anyone have similar experiences with the Co Op? If other people do have problems then together we can possibly put pressure on the Co Op to change their policies. Alone I have no chance...0 -
PetePetePete wrote: »I changed over to the Co Op Bank as I was disillusioned with the other high street banks and their practices and ethics etc. However I am becoming more andmore frustrated with Co Op's customer service, or the lack of it. I cite the following examples:
1. When I changed over I filled in a Direct Debit instruction form so that Co Op could send it to my old bank and get all Direct Debits transferred. The guy who opened my account forgot to submit it. Also he did not inform me thatit would take a number of weeks for the Direct Debits to transfer. I thereforehad a month where all money was going into my new account but all direct debitswere coming out of my old one. Therefore a number of important monthly payments were not fulfilled (mortgage, carinsurance etc). No apology or compensation was offered, they merely referred to their terms and conditions....
Have you received the letter before switching your salary? If so, you have a strong case against Coop regardless of what they say. Otherwise, I don't see what apology or compensation you expect.- Once we've received your request to switch, we'll contact your old bank for a list of your Direct Debits and standing orders.
- When we receive the list back we’ll set up your standing orders and ask your Direct Debit Companies to claim payments from your Co-operative Bank account.
Please note it is the responsibility of these companies to update their records with your new details. - When the payments have been set up on your account we’ll send you a letter to confirm this.
Once you receive this letter you should give details of your Co-operative Bank account to your employer, pension provider or anybody else that pays money in to your account.
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Have you received the letter before switching your salary? If so, you have a strong case against Coop regardless of what they say. Otherwise, I don't see what apology or compensation you expect.
Yes, I am now aware that is is what should have happened. However when I went to the branch to open the account none of this was explained to me and I do not remember being given any paperwork to explain the sequence of events. If I was given to me it then it was buried amongst all the other paperwork and it was certainly not brought to my attention. The guy who opened my account merely said that he would submit the form to my previous bank and did not tell me anything about waiting for letters etc.0 -
PetePetePete wrote: »But I cannot believe I have a choice of either banking with one of the big 4, or banking with an organisation which has out of date systems and bad customer service.
You shouldn't believe it because it is not true.
You have many more banks and Building Societies to choose from.
For instance, Nationwide has been rated (by those ethical rating people I posted a link to) as a lot more 'ethical' than the Coop. But if you don't think Nationwide are for you either, there's a plethora of others who the ethics-raters put above the big 4.
"Ethical" appears to be a bit like "beauty" - - - i.e. a very subjective assessment of something or someone. Having a mediocre CS, or anancient system (your complaints), for instance, wouldn't count as 'unethical' in my books. It's just lack of investment, and general sloppiness (probably a direct result of lack of investment). I for one wouldn't deal with such an organisation, particularly not if I have literally a dozen or more alternatives.0 -
You shouldn't believe it because it is not true.
You have many more banks and Building Societies to choose from.
For instance, Nationwide has been rated (by those ethical rating people I posted a link to) as a lot more 'ethical' than the Coop. But if you don't think Nationwide are for you either, there's a plethora of others who the ethics-raters put above the big 4.
"Ethical" appears to be a bit like "beauty" - - - i.e. a very subjective assessment of something or someone. Having a mediocre CS, or anancient system (your complaints), for instance, wouldn't count as 'unethical' in my books. It's just lack of investment, and general sloppiness (probably a direct result of lack of investment). I for one wouldn't deal with such an organisation, particularly not if I have literally a dozen or more alternatives.
Yes, this is the road I am on. I agree with the cooperative movement's ideals, but it is a shame they cannot keep up with their competitors when it comes to details and the things which affect you on a day to day basis.0 -
I switched to co-op in the summer. The Barclays Libor scandal was the last straw for me. I have no issues with coop at all. Yes their online banking is a little dated, but it all works fine. I'd rather they didn't charge me more so they can upgrade their systems when they will be inheriting lloyds systems soon anyway. Their staff are always friendly and polite which is a sign they are well treated by their employer.
Your complaints mainly seem to revolve around the fact that you are determined to pay bills only at the very last minute. A little more organisation on your part is all that is required to resolve this!
I've seen a lot of people on here bashing the coop every time they experience something they don't like on the grounds that coop is an ethical bank so surely they should do whatever customers demand any time. But really the ethical part is just in relation to where they invest your money: e.g. They wouldn't knowingly invest in a firm that uses child labour.
Of course if you don't like the coop you have many other choices as other posters have explained. Why not try nationwide?0
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