Is It Time To Abandon The Co-op Bank?

antrobus

Mojisola wrote: »

That certainly didn't happen within a week!

Icesave was a special case. Since, technically speaking, the FSCS had no liability in respect of Icesave; it should have been the Icelandic equivalent that was coughing up the money, only they were being 'difficult' about it.

lisa701

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....

Thanks Douglas1985. I visited the website but only information I could find regarding making a claim was a web form you need to complete. Said nothing about the process being automatic.

Even so think I will play it safe as I don't see it only taking a week to get anything back.

antrobus

The FSCS will aim to pay compensation in the majority of cases within seven days of a bank, building society or credit union failing. Any remaining claims, which are likely to be more complex, will be paid within 20 working days.

http://www.fscs.org.uk/your-claim/how-long-will-it-take/

The FSCS has a certain amount of experience in paying out claims; normally a credit union goes bust every few months or so.

System

Iceland actually won in court.

The UK government also paid above the protection limit (€20,000) which the Icelandic scheme was under no obligation to cough up.

The co-op bank is small enough that it would end up being merged with another bank or Building society. The shareholders would simply lose ownership like with Bradford and Bingley.

antrobus wrote: »

Icesave was a special case. Since, technically speaking, the FSCS had no liability in respect of Icesave; it should have been the Icelandic equivalent that was coughing up the money, only they were being 'difficult' about it.

Douglas1985

Lisa

It can't hurt to have a second account so why not. The FSCS has a helpful site and checker tool if you search FSCS protected. As someone else on the forum says, they do pay regularly people when credit unions fail within a couple of days. Apparently, they did the same when the Southsea bank went under too. As I understand it, the just use the bank records to pay people, which makes it quicker.

bambos

I have only just moved to the co-op recently as I wanted a basic bank account that I could have no overdraft and all my bills going in and out of. I manually switched everything over as my previous account with Nationwide has an outstanding overdraft which they called in just before Christmas so I moved and set up a payment plan with Nationwide.

Now I'm scared that there will be problems with co-op and I'm considering switching. What's the implications of switching using the 7 day switch scheme? Do they transfer everything? Wages? Child benefit? Etc.......would I get an incentive if I switched to Halifax as a pp said they are giving people £100.

I have never moved banks before as I was with Nationwide 20 years before I had to move to co-op. Now I'm reluctant to move again as I have just got it all sorted out. Any advice would be appreciated I'm clueless.

System

Firstly, Halifax will only give you £100 if you qualify for a full current account i.e. not the Easycash basic account.

Secondly, the recent uncertainty relates to the Co-op itself rather than the Co-op Bank.

I suggest sticking tight unless you have another reason to move.

bambos wrote: »

I have never moved banks before as I was with Nationwide 20 years before I had to move to co-op. Now I'm reluctant to move again as I have just got it all sorted out. Any advice would be appreciated I'm clueless.

hansi

WoodruffsDad wrote: »

My post was not inspired by the resignation but simply by current events within the Co-op Bank and the fact that certain areas of mobile banking have not been working for several days.

Which areas would those be? I haven't noticed any problems.

ColdIron

We knew it was bad but not this bad

The Co-op has been undermined by "reckless" dealmaking, "shocking" levels of debt and governance standards far worse than even the banks before the credit crunch, according to Lord Myners, the group's senior independent director who was charged with overhauling the boardroom.

"What I think I have exposed is that the Co-op is not a democratic organisation and has a deeply flawed governance structure, and if it doesn't address these issues the pace of decline will simply increase.

The reality is that the Co-op has been in decline for 60 years."
The organisation had "the worst governance I have ever witnessed" and "shocking" levels of debt, some of which was hidden by complex property deals, he said

http://www.theguardian.com/business/2014/mar/14/extent-co-op-shambles-laid-bare-by-lord-myners?CMP=twt_gu

Archi_Bald

Would be interesting to hear what he said specifically about the bank. My guess would be that by now they are one of the better managed businesses but I could be wrong.