Coop Account

AZUL

Hi to All

I have had an account with Coop a good few years now and at the moment Im happy with them
But on reading recent problems they are having, I wondering if it would be wiser to move on to another bank. anyone any thoughts on this ?
Another problem that Im a little worried about is I also have a credit card with them.
If I do decide to move on have anyone heard of them closing the credit card and calling in the debt ?

EachPenny

I would keep the Co-op account, but open a new account elsewhere and move some money across to the new account as a just-in-case. If Co-op fails I'd expect everything possible will be done to make it as orderly as possible (don't want to scare anyone with Brexit to negotiate). It is likely that all Co-op retail customer accounts will be transferred to a different bank and everything will carry on as normal.

However, make sure your total deposits with Co-op are (well) below the FSCS limit, and have a second current account elsewhere that you can use for cash and emergencies if there is a period where your Co-op account is not accessible.

AZUL wrote: »

If I do decide to move on have anyone heard of them closing the credit card and calling in the debt ?

Unless the credit card is some kind of linked product with the current account then I don't think you have to worry too much about this, especially if you do as suggested above and keep the Co-op account open but have a back-up account.

Banks like credit card customers, you rarely need to do your banking with them to get a credit card.

Chapuys

I switched my Smile (Co-op) Account to First Direct recently but left my Smile Credit Card active. They will not close the credit card down. The APR changed (I think around 18% to 20%) because I didn't hold a current account but I don't plan to draw on it much. My high, but hardly used, limit with them gives me a lot of kudos on my credit file apparently.

Yawn

I agree with EachPenny. It is generally a good idea to have two current accounts anyway, in case you misplace your debit card, etc. Plus, you can earn twice the awards when done properly. I have a Coop account, but also earn 5% interest with a Nationwide one.

System

The time to think is when it's revealed what is to happen to the bank/customers going forward. Until then it's business as usual for those under £85k in the Co-op Bank and sub-brands.

Not keeping all your (current account) eggs in one basket is simple common sense though.

luvchocolate

I have a basic bank account with coop,not sure if I can open another basic account with a different bank as well, or if you can only have one basic bank account.

teddysmum

Yawn wrote: »

I agree with EachPenny. It is generally a good idea to have two current accounts anyway, in case you misplace your debit card, etc. Plus, you can earn twice the awards when done properly. I have a Coop account, but also earn 5% interest with a Nationwide one.

Is that all you can manage ? We have those plus,TSB and Tesco, with Lloyds about to join.

Stuart_W

In reality, whether the Co-op is fully taken over, or orderly wound down by the regulator will make little difference to customers. Someone will run the accounts, and it will be a cheaper purchase if buyers can cherry pick the bits they want and leave the dodgy bits, which might mean a better deal for customers, with equity owners taking a hit on their investment instead. The show down between the hedge funds, any new buyers and the regulator won't really mean much for customers.

System

Stuart_W wrote: »

In reality, whether the Co-op is fully taken over, or orderly wound down by the regulator will make little difference to customers. Someone will run the accounts, and it will be a cheaper purchase if buyers can cherry pick the bits they want and leave the dodgy bits, which might mean a better deal for customers, with equity owners taking a hit on their investment instead. The show down between the hedge funds, any new buyers and the regulator won't really mean much for customers.

I pretty much agree - now Co-op are closing my branch, should It get taken over by Virgin or Clydesdale then I should get branch access back. Even if it gets wound down, almost all accounts will be migrated to another provider.

EachPenny

Heng_Leng wrote: »

Even if it gets wound down, almost all accounts will be migrated to another provider.

Yes, I have every confidence that accounts will get transferred elsewhere in a fairly orderly fashion, I'm quite happy keeping my Co-op account and do so partly to show them my support.

The problem is potentially people who are less well informed reacting badly when they hear about 'failure' - remember the Northern Rock queues in 2007? Rationality can go out of the window when you think you are about to lose your savings.

The risk for people who only have accounts at Co-op is that a short-term temporary interruption to normal business by the actions of panicking customers could cause the kind of problems the panicking customers are worried about. Having a second account elsewhere is just prudent in the circumstances.

Hope you do get your branch back!

Westie983

My local branch of COOP closed at the end of February, no news yet about if the account will be closed and migrated.

At the moment the old branch is still sitting empty and no sign of anything else going in there.

I think I only ever went in once to get an old britannia book updated, and never needed to use them for the bank account. I have used telephone banking when I lock out my online access and apart from that I have transacted and used my online details for the account.

Maybe this could be a reason why they decide to close, the footfall of customers are reducing, I can say this is the same in the banking industry as HSBC has closed locally too.

Soon it will be machines and virtual branches, where you use an iPad to video call a banking advisor to open accounts...

Westie983