Coop Bank Charges to create charges

ArnNIA

Hi, I'm currently a student and in September 2012 i took out a student account with the Coop Bank after reading that at the time it was the best student account around with a 0% interest overdraft.

I created the account knowing that a year after i graduated (around July 2016) i would have to start paying the overdraft back. That was fine.

Unfortunately the Coop don't seem keen to follow their side of the bargain, they called me around 6 weeks ago telling me that my student account was now a current account and that i now immediately owe them £1700.

So calmly i explained this must be a mistake as i'm just entering my third year at university and could prove i'm still a student with an email or send them a letter of my enrollment right away to clear that up.

They said bluntly that this was not possible and that a current account cannot be changed back to a student account. On top of that because now the account was classed as current,i was being charged for being overdrawn. By the time they called me i was charged around £50 taking me over my pre- arranged overdraft limit and now i'm being charged for being over that limit.

So i explained to them in full detail that i'm not going to be able to pay them back the money as i was still a student and couldn't really do anything to cough up £1700.

I've really tried my hardest to sort this issue out but after £100 worth of phone calls to there customer service department and all the other departments I've been put through too and around £100 worth of charges and counting. I'm now being bombarded with letters threatening me with default, bad credit, etc etc etc.

I also did issue a complaint in for my problem to be investigated but its been over a month now and there no word on when they will get around to responding.

Any advice?

stator

Do you know why they converted into a current account? Did they think your course was ending?
You might have to read through the T&C of the account to see what rights they have to convert it.

ArnNIA

Thanks for the speedy reply.

When i asked a customer service representative over the phone why the account had been changed i was told it was because it had been a year since i'd graduated.

I did explain to them that if i opened the account and started University in September 2012 a year after i graduate would be July 2016 not September 2014.

But the only reply I've had from every single person I've spoken to at the co-op is "oh OK ill pass you over to....(insert department)" no-one can actually give me a direct answer on why my account has been changed even though it clearly should not have.

The furthest I've ever got over the phone was with the overdraft department when after i explained he told me that it sounds like an error on the co-ops part but that they categorically cannot revert my account back to a student account. Leaving me with 0 options.

Gaz83

ArnNIA wrote: »

Thanks for the speedy reply.

When i asked a customer service representative over the phone why the account had been changed i was told it was because it had been a year since i'd graduated.

I did explain to them that if i opened the account and started University in September 2012 a year after i graduate would be July 2016 not September 2014.

But the only reply I've had from every single person I've spoken to at the co-op is "oh OK ill pass you over to....(insert department)" no-one can actually give me a direct answer on why my account has been changed even though it clearly should not have.

The furthest I've ever got over the phone was with the overdraft department when after i explained he told me that it sounds like an error on the co-ops part but that they categorically cannot revert my account back to a student account. Leaving me with 0 options.

When did you open the account, and when did you start University?

ArnNIA

i started University on the 24th September 2012, i also opened the account in September 2012.

Sinhanada

You need to write a letter to them titled Complaint. Set out the actions why you are complaining - the change of status of your account and then what you would like them to do to redress this error - namely change it back to a student account.

They have 8 weeks to investigate your complaint and come back to you. If you are not happy with the outcome of this complaint, raise it with the Financial Service Ombudsman.

Gaz83

ArnNIA wrote: »

i started University on the 24th September 2012, i also opened the account in September 2012.

Cheers.

I'd go down the route of a complaint letter, asking them to state, in writing, their reasons for changing the account from a student one to a standard current account, and if they won't reply that you'll contact the Financial Ombudsman.

ETA: I see the above poster has said the same thing, I think this will be your best bet.

ArnNIA

Okay thanks, ill get right on that, if i hear anything ill post back.

stator

If they still refuse and say they can't convert it back you should push for a complete freeze of the interest and removal of all previous charges. Then take out a student account somewhere else. If you get accepted you could pay off the co-op account with an interest free overdraft on the new student account. But you might have trouble getting a new account if the co-op have messed up your credit report

ArnNIA

Okay, sorry its been a while, been trying to work out my next step of what to do. I got a response from the co-op on the last day of the 8 week complaint limit which i thought was funny (hard to think its not intended) which was on the 22 November 2014.

Basically they said there finding were as follows

The student account was opened on the 5th September 2012.

They sent a letter to me on the 20th August 2014 saying that my account was being converted to a current account.

They did not receive any contact from me until 30 September 2014 at which point the account had already been converted.

The first and last points above are true and the part about giving me notice is BS.

The reason they state for my account being converted to a current account is because i was not paying my main source of funding into the account on a termly basis. They did refund interest charges up to the date of the letter and offered me the chance of re-applying for another student account be here is where it gets tricky again.

My initial thought was "great lets re-apply for another student account with them" so i did. But now after a few weeks of waiting to see if the application passed (no reason i shouldn't right? if they offered me that option) my application came back as a fail based on my now damaged credit rating, which was caused by them... So in retrospect they have offered me 0 options of fixing this problem.

My next step was to apply to other banks, all have now failed because of my credit rating.

And yet the charges just keep stacking up, what started out as £8 per month is now over £30 a month with no feasible way to stop it, i've now spent over £250 quid in phone calls alone trying to contact the co-op.

I've contacted the ombudsman explaining the issue but i highly doubt they will go my way as the co-ops reason is actually stated in the terms and conditions that they have the right to change the status of the account if my main source of funding is not being paid in.

So any ideas guys? I'm starting to think a 0% interest credit card may help but my credit score is really bad now.

DCFC79

A credit card application wont be based on your credit score (it doesnt exist or lenders dont see it ) but on your credit history which will contain certain financial things about you for example any defaults, late payments etc etc.

Id get a copy of your reports from all 3 CRA's.