Coop

memberme

Coop have just sent out their latest ammendments to conditions required to keep a bank acount. The main change coming in 16th September is that if you have an iva or bankrupt they can close your acount inediately without any grace as a serious breach of their rules. How can a new ammendment be a serious breach if it was ok the day before. These seams really unfair to me. I am thinking to ignore and see if they bother as i've caused them no problem in the last 4 years whilst in an iva.
Any comments....especially from any coop folk most welcome

alastairq

to which product are they referring?

memberme

Seems to be all their acounts looking at the front if the leaflet.
Names co op current
Co op plus, priviledge, premier and student.

I assume the 'current' is the cashminder as it's the only one below acount plus.

I have acount plus from previous to iva enrolment

alastairq

The accounts you have listed are all full accounts, with cheque book and overdraught facilities.

The Cashminder account is listed on all Co-op's booklet library as a separate type of account [basic account].

It has different terms & Conditions to all the other accounts.
[see Co-op website for clarity.]

Co-op have a booklet ''Seeing Red'' which outlines their policy with regard to debt difficulties [although the bankruptcy information is out-of-date!]

In the archive is their stated policy change to Cashminder accounts [Sept 2012].

All other current account products from Co-op, or any other bank, are subject to closure or freezing by that bank on receipt of information regarding Insolvency of the customer.

Whilst Bankrupt, for example, the only type of current account allowed is a 'basic' account anyway.

Co-op openly have stated in their T&Cs that they are entitled to close an account if the customer's credit record becomes adverse. Although they do state they will give 30 days written warning of such an event, and refund all outstanding balances, less what is owed .

UpToMyNeckInIt

I took out a standard current account with Co-Op when I knew I was about to enter an IVA - less overdraft of course, but I have a cheque book.

Up until recently, I thought it was only HSBC who were draconian in forcing you to close an account once they found you on the insolvency register.

The terms regarding insolvency were there as I recall when I opened my account a Year ago. (Although, I know they no longer accept undischarged bankrupts as new customers).

Time will tell I suppose, but losing the cheque book would be inconvenient. I would hope that, as long as you don’t go into unauthorised o/d or do anything else silly, Co-Op will leave us alone, or at worst ‘downgrade’ to the Cashminder basic account.

memberme

alstair mentions basic accounts for bancrupts but most IP's are happy for you to have any acount for an IVA as long as you use no credit o/d fascilities.

My view still is that after 4 years of perfect acount management to sudenly add to the t&c's as per my letter (general one sent to evryone I guess) that i am now in a serious breach is utter tosh and poor customer relations at best. perhaps a sign of the general companies current position and difficulties.

In agreement with 'upto myneck init' I will waite and see and hopefully they will leave us alone

Max_Maxwell

It sounds like a 'belt and braces' approach from the bank. This clause simply gives them the right to close an account in the event of bankruptcy. I've not seen the text but I imagine it probably says something like 'may close' or 'reserve the right to close' or similar meaning simply they 'have the right'. If you have an established account which has been run correctly without blemish for a number of years you'll be well under their radar.

A bank would be foolish to refuse the business of an upstanding account holder irrespective of their former poor finance handling.

memberme

Hi Max,

I agree but the wording states that to have an IVA or be BR even after an eexisting acount is in operation sconstitutes a serious breech of t&c and rsults in imediate closure even without the 2 months notice. beggarsa belief really.

we'll see