Cooperative bank causing me debt!

Crisp_£_note

Can a bank just close an account and cancel all Direct Debits without warning notice?

I returned recently from a nice family Christmas in Wales to find in the pile of post that awaited a letter from my bank dated the 18th December informing me that as I have not managed my account properly they have closed it and cancelled all my Direct Debits and are blocking my Debit card on 1st January! :mad:

I rang The Cooperative Bank up and spoke to them but they were adamant their not going to overturn the decision as the 30 days notice (as per date on letter) had already started and is almost half way through.
The advisor explained the reason they had done this is because I had gone overdrawn or had several Direct Debits returned over the past 6 months and I have been sent letters about them and their charges relating to them yet I haven't contacted them before about this.

I explained the reason I hadn't called was because my account statements online showed no reason to and all was in order and I had previously received such letters in error when no allarm was necessary so I overlooked some of them thinking it had happend again.

I was quoted the returned DD was infact for Eon when from what I understand it can't have been because I actualy put money aside by transfer into a savings account with Coop each week so I can pay the lump sums to the Council Tax and Eon online payment on their respective websites via Debit Card so I know those payments are covered and there is enough funds in my account.

I suspect it could be the Direct Debit to Sky subscription which I have had several problems with it being returned unpaid in the past 6 months but is that the same as an unauthorised overdraft? In my view it isnt as its money that was not paid as not enough money to pay it so although the payment was credited it was also returned (therefore refunded) and recredited.

I also pointed out that this account was actually a very basic account and therefore I was not permitted to have an overdraft as they were not allowed on such an account. The adviser confirmed this then told me the 'item' in question this time was a withdrawal by an energy supplier on 18th December for £xxx to which I confirmed this was correct however I acutualy know for a fact there was enough money in the account to cover that DD as I have a savings account with the same bank and use it to 'pidgeon hole' the money each week towards the gas, electric and council tax as these are the largest monthly bills. I then transfer this back over in one lump sum and pay online by debit card my bills to said 2 companies (council tax and energy supplier). Therefore there is no possibility with this that I can go overdrawn!

I dont use my card as a debit card other than these 2 payments online or actualy pay Sky by debit card when there are cleared funds if it had been returned.

My point is the online statements have not ever shown a negative ballance and always shown I have been in credit. I am careful how I run the account and always top up or wait to transfer any weekly funds until the rest is cleared.

It has been getting more difficult as the priority bills are creeping up and very close to going over the income mark so am sorting that out as I write and seeing what savings I can make with bills etc over the next year.

This account with Co-Operative Bank is just for paying the bills the only income credited to it is the Working Tax Credits which my husband is entitled to and is used to pay the household bills.

This has really left me in a lot of bother and stress right now as I know all the Direct Debits have been cancelled when up to now they have been paid without any problems and I am not sure how I can receive the Tax Credits without a bank account and obviously now the DD arnt getting paid and so im going to end up in arrears and all kinds of issues plus we are heading towards the bank holidays for new year and to add more miserey my benefits are being cut completely at the end of April thanks to this government thinking I am capable of work after not being able to for over 10 years due to a condition of the spine and many other genuine problems. I do have my benefit paid into another bank but thats just enough to fund our food each week and a little spare for putting aside for other uses (emergency needs, gifts, holidays, clothes etc or entertainment) and certainly not enough to be frivilous with we are quite frugal people but even failing at that right now so it seems.

Ive already had a DRO in the past 2 years (hence the basic bank account) so feel all the hardship to get out of debt and get back to being on track with payments and credit etc are slipping out of my controll again.

Is there anything I can do to complain to the bank as their the ones who have caused this trouble when all was running tighly but ok and on time up till now.

Thanks in advance.

EarthBoy

Crisp_£_note wrote: »

I suspect it could be the Direct Debit to Sky subscription which I have had several problems with it being returned unpaid in the past 6 months

Many MSE members have reported that the Co-op Bank has a three strikes and you're out policy on its Cashminder/basic bank account, i.e. three unpaid DDs and they will close your account.

They will be un-moved by any complaints as it's their standard practice, so you'd best look for an account elsewhere instead.

grumbler

Crisp_£_note wrote: »

Can a bank just close an account and cancel all Direct Debits without warning notice?

http://www.co-operativebank.co.uk/assets/pdf/bank/currentaccounts/common/banking-terms-and-conditions.pdf

We can end this agreement and close your account
at any time but we will give you at least two months’
notice unless there are serious circumstances
(e.g. fraud investigation or where you seriously
or repeatedly break this agreement) which in our
reasonable opinion justify us closing your account
with less notice.

I don't see how this justifies cancelling the DDs and why they tell you that it's 30 days notice, not two months.

Aquamania

Crisp_£_note wrote: »

Can a bank just close an account and cancel all Direct Debits without warning notice?

No

Crisp_£_note wrote: »

I returned recently from a nice family Christmas in Wales to find in the pile of post that awaited a letter from my bank dated the 18th December informing me that as I have not managed my account properly they have closed it and cancelled all my Direct Debits and are blocking my Debit card on 1st January! :mad:

So you were given notice in line with the terms and conditions

19.2
...
We can end this agreement and close your account
at any time but we will give you at least two months’
notice unless there are serious circumstances
(e.g. fraud investigation or where you seriously
or repeatedly break this agreement) which in our
reasonable opinion justify us closing your account
with less notice

http://www.co-operativebank.co.uk/assets/pdf/bank/currentaccounts/common/banking-terms-and-conditions.pdf

Thrugelmir

Did you read the correspondence properly?

I explained the reason I hadn't called was because my account statements online showed no reason to and all was in order and I had previously received such letters in error when no allarm was necessary so I overlooked some of them thinking it had happend again.

Business relationships are a two way street.

PaulW922

There is no point in pursuing this. Cash minder accounts by and large do not make money for banks, so they have little incentive to reverse their decision. I agree with Earthboy. Find another bank.

BonkersBonkers

OP how could the bank send you a letter in error about returned items?

Joe_Bloggs

Dear Crisp £ note

I was quoted the returned DD was infact for Eon when from what I understand it can't have been because I actualy put money aside by transfer into a savings account with Coop each week so I can pay the lump sums to the Council Tax and Eon online payment on their respective websites via Debit Card so I know those payments are covered and there is enough funds in my account.

I acutualy know for a fact there was enough money in the account to cover that DD as I have a savings account with the same bank and use it to 'pidgeon hole' the money each week towards the gas, electric and council tax as these are the largest monthly bills. I then transfer this back over in one lump sum and pay online by debit card my bills to said 2 companies (council tax and energy supplier). Therefore there is no possibility with this that I can go overdrawn!

There is a possibility of the direct debits being taken after the debit card transactions. Direct debits are set up many days in advance of the due date.

In my view to operate a current account successfully you need a float amount that will not cause a 'bank crisis' if all of the direct debits hit it.
Banks have no idea that money in savings accounts is destined for paying bills or should be used to pay for bills when the current account is lacking in funds. Such a feature is termed sweep banking. This has to be done manually at present.

J_B.

The banks will raid your savings accounts, held with them, if you owe them money. ( The right to set off )

J-B

Crisp_£_note

All other banks are currently rejecting my applications.

DaveTheMus

cancel SKY.....it's all the same programmes on repeat

edit.
Does the post office offer ddebs?