Cooperative Bank Overdraft Rules

bipper

I've got a Privilege Premier Current Account with the Co-operative, I called today as I don't need the Breakdown cover anymore and want to reduce the interest free overdraft from £300 to £200 as I don't use it very often.

I asked to downgrade to the Privilege Current Account (held this previously) and was told they no longer do this account - Not a problem - I know products change regularly etc so instead I asked to just reduce the overdraft from £300 to £200 but was told this was not possible as the £300 comes automatically with the account.

I left the conversation there but, to be honest, I don't care if comes automatically with the account. Surely I should be able to control the level of short term borrowing I have available from them?

I have worked for a number of financial institutions and have never come across this before, I'm not normally one to kick off over small issues (from being on the receiving end of this many, many times) but the past four times I have called the bank (excluding this above call as the advisor was very polite etc) I have received a below average level of service and along with the ancient online banking, I may soon consider moving away, which is a shame as I have banked with them for the past 12 years.

Anyone else come across something similar and got round it?

MaebyFunke

I don't have a good answer to that question, but just to say that I still have a Privilege Current Account with the 200 pound overdraft, I set it up less than a year ago and they certainly don't seem to be withdrawing it since I just got a letter asking about what bonus insurance I wanted for the coming year. Maybe they're not opening it for new customers, but you're not a new customer. To be honest, disappointingly (and at odds with many other people and ratings on here) I've had quite patchy service from the Co-op. I think it depends a lot who you talk to, I'd maybe try pushing to change account with a different member of staff. As far as reducing the overdraft on your current account: I agree entirely, its ridiculous, but not something I've faced.

212

New changes mean it's not possible to transfer between privilege & privilege premier, or add additional holders. Home insurance discount is also being removed. I believe the effective date for all these changes was announced as 31st March, but can't be certain.

I guess the issue, if it was indeed the 31st March, is that if you've been told you can't do it today then it's because today is not a working day (branches aren't open), tomorrow isn't a full working day and Sunday obviously isn't either. That means any changes you make in terms of upgrades/downgrades today will only be effective after Tuesday - after the cut off date.

I'm only guessing but that seems to be the reason why you have been told it's not possible today - the withdrawal was always on the cards and you should've got a letter, but, if the 31st was the date, they could've chosen a better date!

As for the overdraft amount and being unable to reduce it as it's part of the account - that's exactly the same problem with the linked savings accounts, they have to stay regardless of whether someone is using it.

I agree that if the customer wants it they should get it, but the difference between 200 & 300 in terms of debt utilization etc is virtually nothing. You may well want to move as a matter of principle, but having £300 rather than £200 or even £0 isn't going to cause an application to be declined. The biggest issue is for somebody trying to reduce their O/D and come out of debt - when they find £300 is the lowest their overdraft can go.


Incidentally, the co-op website now has priv & priv prem removed from the 'compare accounts' page. If you go to it there is a note saying it's no longer available. New accounts will be launched in the Spring, so you may want to stick with the priv prem for the time being and then move once the new accounts are out if you like what is offered.