Co-operative bank refusing to pay £125 refer-a-friend offer FOS case

TheBanker

datz said:

TheBanker said:

Usually their 'fair and reasonable' approach is beneficial to the customer, but in this case it is benefiting the bank. 

I don't disagree with your assessment, but I do think there is some question over the clarity of the terms, as written. In this case, the coop could have, and should have, been much clearer when running multiple iterations of (similar) offers. Usually banks will state something like "any incentive from <insert specific date>" to avoid confusion.

Anyway, it might not entirely be to the benefit of the bank - at least Bridlington might be able to take some solace from (perhaps) costing the Coop £750 (think this is what the case fee is now).

I agree the terms could be clearer, and I am surprised the Co-op doesn't use similar wording to other banks. But I just can't see a FOS case succeeding on this basis, especially when it's already been rejected by an adjudicator. 

The ombudsman might say that although the terms were a big vague, the customer could have clarified with the Co-op before applying. Or they may say that a reasonable person would realise they were referring to the 'Refer a Friend' offer rather than 'Refer a Friend issue 3' (or whatever iteration it was). Or they could side with the customer although I don't think they will. 

People are entitled to use the FOS - they exist to resolve disputes - I'm just saying I personally wouldn't make any plans to spend the £125 at this stage.

Alex9384

This is what I wrote in their complaint form which I then sent to them via email:

Hello.

I received a £50 switch bonus from Coop last summer (July 2022) after opening my first-ever Coop account and switching my old account to it.
Six months later I decided to switch away from Coop, mostly because of shortcomings of your online banking.
 
In February this year, a new Coop offer popped up. I did read through T&Cs and also read an online forum where people were talking about it. Nothing in the T&C implied that I can't get another bonus as a new customer for the new offer, this time £125.
I opened a new qualifying account on the 1st Feb 23, switched my old account to it via phone call, and then correctly filled a referral form online and sent it to you. This time I was referred by a different friend. I met all the criteria required by Coop.

My switch completed on 3/3/23.
On 4/3/23 I received this email from Coop:

"Dear XY

We wanted to thank you for taking the time to send us your Refer a Friend referral form.
We have reviewed the details you provided and it appears you have already benefitted from this offer.
As per the terms and conditions of the offer, you are only able to receive one recommendation payment for switching your current account to us.
For the full terms and conditions of the offer, visit https://www.co-operativebank.co.uk/products/bank-accounts/refer-a-friend
Thank you, and welcome to The Co-operative Bank.

Yours Sincerely

The Co-operative Bank

REF: E2 "

This is not correct. I have not benefited from THIS offer of £125 which was introduced on the 1st Feb 2023. I benefited from the previous offer of £50 in July 2022 which has since then ended.
I did not hold any Coop account at the time the new £125 offer was introduced, therefore I was not an existing customer. Not to mention that Coop T&Cs don't specify who they consider an "existing customer". Therefore, it's very reasonable to assume that not holding any Coop account is considered as not being a customer.
The wording of T&C is vague and doesn't even specify what "this offer" is, which obviously causes confusion among people. If the T&C clearly stated that I can get bonus for being referred only ONCE IN A LIFETIME, I would have not bothered with all the hoops I had to jump through.
 
This clause is from your T&C:
"3.6 The Recommended Friend is entitled to only one payment even if they switch more than one account to us or if more than one Recommender refers them."
 
Being "entitled to only one payment" does NOT make it clear if it's one payment per this offer (starting on 1st Feb 23), or one payment in some other period of time (e.g. while being a customer/holding account), or one payment in a lifetime.
Some banks put a clause in their T&C saying "in order to qualify for the bonus, you can't have ever had a switch bonus from XX bank before". That's not the case with the Coop T&C.


So, the above was sent in their complaint form.

They replied via online banking messaging system:

Here is the most important claim by Jack:

"A new customer is someone that has never banked with The Co-operative Bank or Smile before".

Really Jack? Where is this stated in Coop T&C? Nowhere!

I then replied:

After that, only a nonsensical reply from Claire, after which I gave up:

So, now the problem is no longer that "I have benefited from this offer", now the problem is that it's "only for new customers".

They are just making up reasons why not to pay out. They are unable to provide the exact wording of their own T&C which would confirm their claim that "it is only for new customers not one who have had an account in the past". I asked them to copy-paste exactly that clause. They didn't. Why?

Alex9384

phillw said:

Alex9384 said:

I've never had problem with any other bank T&C but Co-op T&C are deliberately written in a way that can deceive customers and it seems like they count on it.

Deceive those who try to fleece them, into switching an account at no cost to the customer, at cost to the bank, knowing that they already switched away & will likely switch away again?

I fail to see what is in it for the coop.

Switching away once doesn't mean much. You can always change your mind. That doesn't mean you try to fleece them or that it's OK to deceive customers.

As for your last sentence, are you asking what's the benefit to the bank in getting new customers?

Btw, read my long post with screenshots of our communication and tell me who's right.

eskbanker

flaneurs_lobster said:

Are you intending on making a formal complaint with a possible onward referral to the FO? 

TBH, I have never had need to complain to a bank much above waiting over a week for a new cheque book. A look over the Co-op website didn't find an obvious way to start this process.

https://www.co-operativebank.co.uk/help-and-support/feedback/#make-a-complaint

phillw

Alex9384 said:

They are just making up reasons why not to pay out.

No, the reason they aren't paying out is because you've already received a refer a friend payment.

They are making stuff up because you won't accept that and they want to get rid of you, because it affects their performance review.

I always phone them, you have a greater chance of speaking to someone who will pay attention and if you have something you can build a complaint on, and can put your case forward in a reasonable tone, then they are more likely to help.

Alex9384

phillw said:

Alex9384 said:

They are just making up reasons why not to pay out.

No, the reason they aren't paying out is because you've already received a refer a friend payment.

They are making stuff up because you won't accept that and they want to get rid of you, because it affects their performance review.

I always phone them, you have a greater chance of speaking to someone who will pay attention and if you have something you can build a complaint on, and can put your case forward in a reasonable tone, then they are more likely to help.

Their initial reason was the claim that I have already benefited from "this offers" (still not explained what it is) and then claimed it's because I'm not a new customer, and made up a claim that new customer is someone who has never had a Coop account, which is not stated anywhere in their T&C. Unless you want to prove me wrong and copy-paste that clause.

The quickest way for them to get rid of me would be to simply copy-paste the 2 things from their T&C, which I asked them for.
First, the definition of "this offer" and second, the definition of "new customer" and not ever being a Coop customer before.

Alex9384

TheBanker said:

The ombudsman might say that although the terms were a big vague, the customer could have clarified with the Co-op before applying. Or they may say that a reasonable person would realise they were referring to the 'Refer a Friend' offer rather than 'Refer a Friend issue 3' (or whatever iteration it was). Or they could side with the customer although I don't think they will. 

The terms might as well say "Just clarify all T&C with the Coop directly because they're mess".
Why bother to write them down in a way that doesn't require additional clarification or isn't open to multiple interpretations, right?

I'm not a lawyer, I'm not a native English speaker either, but I think I would be able to write much clearer T&C then Coop.

Example 1: Coop Refer a friend scheme only allows you to get bonus once in a lifetime.
                   If you've ever received any bonus from Coop for being referred, you won't ever get another one
                   (unless we amend our T&C in the future).

Example 2: Only new customers are eligible for Refer a friend switch bonus payment.

                   A new customer is someone who has never had a Coop or Smile account before

                   and/or who opened their first-ever Coop current account from XX date onward.

Or you can decide to write rubbish T&C such as "You can only get one payment" which can mean multiple things... One payment per this offer (which started on 1st Feb?) or one payment per whole Refer a friend scheme ever, or one payment per any offer that Coop bank has ever introduced? Why would you not write clear T&C? Why?

Section62

TheBanker said:

I agree the terms could be clearer, and I am surprised the Co-op doesn't use similar wording to other banks. But I just can't see a FOS case succeeding on this basis, especially when it's already been rejected by an adjudicator. 

I agree that the case probably won't go the OP's way, but not for the reason in bold.

The quality of service provided by FOS investigators is rather variable, and I've been told by one FOS investigator not to spend too much time trying to persuade an investigator of the merits of your case and instead get moved on to consideration by an ombudsman as soon as possible.

I've taken two complaints to FOS, on both occasions I've had to complain to FOS about the quality of service and in both cases my service complaint was upheld.

I think the main issue arising in this thread is the Co-op apparently taking the view "They do not believe you switched your main current account based on your account behaviour".  There's lots to unpick in those words, and if this were the main reason for non-payment then I'd have some confidence the OP could win.

But the argument the first/original "offer" hadn't ended is difficult to argue against, so it will be pot luck whether the ombudsman feels the Co-op haven't been sufficiently clear in their terms.

Alex9384

Section62 said:

I think the main issue arising in this thread is the Co-op apparently taking the view "They do not believe you switched your main current account based on your account behaviour".  There's lots to unpick in those words, and if this were the main reason for non-payment then I'd have some confidence the OP could win.

But the argument the first/original "offer" hadn't ended is difficult to argue against, so it will be pot luck whether the ombudsman feels the Co-op haven't been sufficiently clear in their terms.

Coop T&C don't mention "main account" though. Only a "full switch".
Like I already said, they're making up new rules on the go.

"1.2 Your Recommended Friend must open and complete a Full Switch using the Current Account Switching Service. Your Recommended Friend must open one of the following accounts to qualify ..."

 

and

"2.p.2. complete a Full Switch into your new account using the Current Account Switch Service (which will include the closure of your old account and moving all your payment instructions to the new account on the day that your switch completes); and
2.p.3. complete the referral form ... "

The original "offer" ended in December 2022 with final switching date in January 2023, so there's nothing to argue about.

phillw

Alex9384 said:
The quickest way for them to get rid of me would be to simply copy-paste the 2 things from their T&C, which I asked them for.

First, the definition of "this offer" and second, the definition of "new customer" and not ever being a Coop customer before.

It would appear this offer is the refer-a-friend offer on their web page, which has existed since

https://web.archive.org/web/20210916111731/https://www.co-operativebank.co.uk/products/bank-accounts/refer-a-friend/

Just because the bonus has changed and it was not available for a period of time, that doesn't stop it being the same offer (at least this is how both the coop and the ombudsman see it).