Coventry BS bids for the Co-op Bank

EarthBoy

https://forums.moneysavingexpert.com/discussion/comment/82115591#Comment_82115591

The Co-operative Bank has never been a mutual organisation, so you were never a member of it, only a customer. Having an account with them for 35 years counted for nothing, so why do you think your membership of the Coventry should be backdated?

The_Groat_Counter

https://forums.moneysavingexpert.com/discussion/comment/82115591#Comment_82115591

Your years do not "reset to zero", they start at zero as you were never a 'shareholder member' of the Co-op Bank in the first place.

Stuart_W

@Elsatelsa Welcome to MSE forums. I have also been a customer of the Co-op Bank for almost 35 years, but don't have any of the concerns you seem to be worried about.

Co-op bank was always a plc, wholy owned by The Co-operative Group, previously called CWS, up until 2013 when it became a minority shareholder and exited completely in 2017.

Full legal transfer into CBS is a route back to arguably better and a more direct type of mutual ownership, and I will actually become a member directly of the "bank" for the first time, and the bank ceases to be an owned plc but a member-owned building society.

The anti-carpetbagging clause is to prevent folk opening accounts to try and cash in on mutuals turning into plcs as happened throughout the 90s , I would be happy to see that strengthened so membership can never be "cashed in" irrelevant of years of membership and the clause donating share value to charity becomes a permanent status. It was looking very likely at various points another shareholder bank was going to buy. Co-op, Shawbrook and Aldermore were both interested parties at one point, along with Cerberus which would have seen me leaving fast. I am hoping the CBS future is positive for all Co-op's customers, as we shift from being customers to members.

The_Groat_Counter

https://forums.moneysavingexpert.com/discussion/comment/82116146#Comment_82116146

Well said @Stuart_W. I shifted my banking to the Co-op Bank in the wake of the financial crisis, attracted by the idea they were a bit different from the shysters on display elsewhere in the sector. They were indeed different, the problem is they also subsequently proved to be a bit lacking in competence when it came to some of the basics of banking, not helped by the acquisition of Britannia Building Society which turned out to be a bit of a basket case. (Is that a fair summary?)

The Co-op Bank finding its home as part of a big and well run building society, the Coventry, is great news - and far preferable to just stumbling along under unpredictable hedge fund ownership.

grandadgolfer

https://forums.moneysavingexpert.com/discussion/comment/82116146#Comment_82116146

Ahh the happy days of carpetbagging how I miss them

gt94sss2

Legally, I doubt that Coventry have to make Co-op customers members at all.

Plus, the 5 year qualification period is interesting. If only as many building societies now prohibit new members from benefiting from windfalls indefinitely.

FLAMPARD

carpetbagger.com and Ord (the guy with great advice) can you remember him ?
those were good days

ChirpyChicken

https://forums.moneysavingexpert.com/discussion/comment/82116628#Comment_82116628

Indeed what fun

Stuart_W

https://forums.moneysavingexpert.com/discussion/comment/82116739#Comment_82116739

No, they don't have to, but they have already stated that they will in the documentation sent out to Co-op bank customers. It is set out on page 11. Anyone who holds a savings account, current account or mortgage will become a member.

StewedApple

From the documentation published, the only groups of people who are potentially detrimentally affected fall into two categories:
1. Those whose new combined deposits exceeding the £120k threshold - there is written assurance that such people will have the opportunity to transfer deposits if necessary without penalty (regardless of any restrictions on the accounts moneys are held in).

2. Those who have debts with one of the organisations and deposits with another which may mean in certain circumstances the Coventry may use one to offset/repay the other. Generally, this type of activity is usually only done with a court order, but it may have other implications.

Assuming due diligence, the proposal looks to be beneficial to customers of the Co-Op who will now have full status as building society members.

The days of the instability caused by the headlong rush to demutualise (and the adverse impact of carpet-baggers and their feeding frenzy on multiple building societies) are thankfully behind us.

The plurality of financial options for people in their regions is also very welcome - particularly given the debts we have all been saddled with by the banking crisis precipitated by the bankers themselves.

Anyone who feels they are adversely affected does have a right of representation.