Is It Time To Abandon The Co-op Bank?

Aquamania

ColdIron wrote: »

None of those organisations went 'belly up'

Nor has the Co-Op

But the others would have done if it were not for the tax-payer bailing them out, essentially under part nationalisation. (Apart from Halifax who were bailed out/bought out by Lloyds under government pressure - but that ended up stuffing Lloyds)

gt94sss2

WoodruffsDad wrote: »

Thank you Sunil but you have not addressed my main thrust, namely should I switch from the Co-op to another bank.

I said it should take 7 days for you to get access to your funds via the FSCS. Whether you want to switch to someone else or have a 2nd account is your choice but its not a bad idea.

In response to your point, can you name a UK bank which offers a current account and which is more ethical than the Co-op or Nationwide?

It depends what you mean by 'ethical' - perhaps a smaller building society or a credit union?

Personally I would go for the highest return and donate any interest etc where I wanted..

Regards
Sunil

antrobus

WoodruffsDad wrote: »

I have a current account with the Co-op Bank with ALL of my money in it.... but if it does go belly ....

I don't believe that's particularly likely. The Co-Op Bank is now owned by some US based hedge funds who are looking for a return on their investment thank-you-very-much.

pmduk wrote: »

The resignation is that of the Chief Exec of the group and has no direct relevance to the bank.

The CEO hasn't actually resigned. That nice Mr Peston has merely reported that he has threatened to resign. The CEO may well follow through with this promise. Or he may not.

alanq

Aquamania wrote: »

Even customers of Northern Rock only suffered issues caused by their own making ... all queueing up at the same time to try and get their cash

Do you blame them? Under the compensation scheme then in place they risked losing 10% of any deposits over £2000 and 100% of deposits over £35,000 - a maximum payout of £31,700.

Blame the powers that be that were too slow to react to give guarantees not the depositors.

gt94sss2

antrobus wrote: »

The CEO hasn't actually resigned. That nice Mr Peston has merely reported that he has threatened to resign. The CEO may well follow through with this promise. Or he may not.

Well he wrote and submitted a letter of resignation, which the Board has now accepted so I would say he's gone.. especially as they have already named his successor!

Regards
Sunil

Herbalus

WoodruffsDad wrote: »

This very website lists them as the top ethical bank. Have a look!

dr_adidas01 wrote: »

This very website lists many things that it thinks are ethical and also best for you especially when an origination pays them to say so.

Doesn't mean it true!!

Actually MSE doesn't really go into the ethical nature of banks, but pulls its data from the ethical consumer website. OP, have a look there if you want their (presumably researched to some degree) opinion on which banks are ethical.

MSE doesn't shy away from the fact that it gets paid for affiliate links, but it has always maintained that every individual should check out the details of every offer first, decide for themselves what they want, and promotes taking control of your own finances.

The last one seems less obvious recently, but it's still there.

And usually, for the majority of people, the products that MSE highlight are the best for people. That's why the savings tables and credit cards etc are full of best buys....!

lisa701

I'm seriously considering opening an account elsewhere just in case.

No mention is being made of the serious financial hardship many could find themselves in. I cannot see the claims process being straightforward or taking only 7 days especially if so many need to claim at the same time.

In the meantime many will find themselves not only unable to pay their bills, but also unable to get to work/school or eat because all their money is in the hands of the now in administration bank. Not everyone has savings or a credit card to fall back on so if they are unable to access their funds they will have a serious problem.

I also cannot see any mortgage or insurance company being happy to wait for their payment whilst someone waits until the FSCS gives them their money back.

I for one will be withdrawing all my fuel and food money as soon as I get paid just in case. Bad enough bills not being paid but I don't see why my family should suffer.

Douglas1985

The process the FSCS uses is automatic. They get the bank's records and automatically send your money to you. You don't have to apply. the compensation scheme has paid out before including for Bradford and Bingley and Icesave. Of course, you can play it safe as you say....

Vortigern

WoodruffsDad wrote: »

I have a current account with the Co-op Bank with ALL of my money in it.

Should I, therefore, switch now to another ethical bank, such as Nationwide?

What benefits do you get from the Co-op? Are they worth keeping?

If not, switch to Halifax for their £100 incentive and £5 per month Reward.
- or to Nationwide FlexDirect for 5% interest on £2500 for 12 months
- or to first direct for their regular saver

All above are better reasons for switching than the fear of the bank going belly-up.

Mojisola

Douglas1985 wrote: »

The process the FSCS uses is automatic. They get the bank's records and automatically send your money to you. You don't have to apply. the compensation scheme has paid out before including for Bradford and Bingley and Icesave. Of course, you can play it safe as you say....

That certainly didn't happen within a week!