Is it time to switch from Co-op Bank

mikeybase

Hi there.

New to the forums so apologies if this has already been asked/discussed.

Following the recent news that the ailing Co-op Bank is being formally investigated by the PRA and FCA, as well as their interesting director choices, do you think it's time to jump ship before the poop really hits the fan?

I've been a customer with them for years and they've been fine so far (though their internet banking interface is hideous). Just wondered what anyone else thought.

Thank in advance,

Mike

Archi_Bald

have a look at this thread https://forums.moneysavingexpert.com/discussion/4824840

mikeybase

Archi_Bald wrote: »

have a look at this thread forums.moneysavingexpert.com/showthread.php?t=4824840

That's fantastic. Thanks a lot

pqrdef

I've added them to my list of sacrificial accounts waiting for a switching incentive, because I just can't see them going anywhere from here. The product set is uncompetitive, the systems are knackered, and the branch closures have started.

The new owners can't really do anything but fettle them for a sale. But who to? A forced marriage with TSB may have been the best answer.

Meanwhile, the Co-op Group has skipped the last divi payment. Oddest of all, they've sold the insurance arm and the new owner is still using the brand, thus polluting what it stands for.

This could be the beginning of the end for the Co-op. Asda would probably like the shops. They may even fancy the bank.

Paul_B.

I'm not sure they're quite as clapped out as that just yet are they? Sure their IT systems could do with an update, although I'm not sure how bad they actually are in comparison to the one that springs to mind RBS. They've just had a load of investment to ensure they've got enough capital. There hasn't really been a Northern Rock style run on them either.

1jim

I am part way through the 7day switch, moving from smile to the nationwide. Not really due to worries about their finances more about the ethics of the whole set up and hedge fund ownership. I shall probably go back when/if they return to full coop control

System

I have to agree as their sole USP was their quasi-mutual / ethical status with their product range being far from competitive.

I'm not sure who would want them?
TSB? Metro Bank?

pqrdef wrote: »

I've added them to my list of sacrificial accounts waiting for a switching incentive, because I just can't see them going anywhere from here. The product set is uncompetitive, the systems are knackered, and the branch closures have started.

The new owners can't really do anything but fettle them for a sale. But who to? A forced marriage with TSB may have been the best answer.

Meanwhile, the Co-op Group has skipped the last divi payment. Oddest of all, they've sold the insurance arm and the new owner is still using the brand, thus polluting what it stands for.

This could be the beginning of the end for the Co-op. Asda would probably like the shops. They may even fancy the bank.

Archi_Bald

Heng_Leng wrote: »

I'm note sure who would want them?

Why would anyone want to buy a billion and a bit debt? And that's just the known debt.

Paul_B.

I've got their privilege premier product which I think is relatively competitive. Although Nationwide's FlexPlus is pretty competitive with it. I might be wrong.

I thought the debt issue had been sorted with this investment by the Coop group and the American investors? I wouldn't have thought people would have invested this much into a bank if it was even possible that it could fail in the near future.

Anthorn

Archi_Bald wrote: »

Why would anyone want to buy a billion and a bit debt? And that's just the known debt.

They don't have that debt any more: All bond-holders have voted in favour of the rescue package and that has been approved in a court of law. All we're waiting for now is for shares to be apportioned and floated on the LSE. In the meantime the bond-holders group and the Co-operative Group will be injecting the funds they promised into the Co-operative Bank. But there is still repetitive news stories posted over and over and over again principally by that government propaganda mouth-piece, BBC News about proposed government agency inquiries into the bank. What purpose any inquiry will serve at this late stage I really don't know.

I'd say that the Co-operative Bank now has a very solid foundation!

Archi_Bald

Anthorn wrote: »

What purpose any inquiry will serve at this late stage I really don't know.

Seems there still are people who are extremely uncomfortable with the idea of further revelations. So even more reason for the inquiry to take its course.