Co-operative Bank makes tough call on basic banking

This week The Co-operative Bank announced that it will no longer allow undischarged bankrupts to open a basic bank account.

Until last Monday (17/09) The Co-operative Bank along with Barclays was one of only two banks that gave bankrupts access to basic banking facilities.

However with the rest of the industry failing to play a part in this unprofitable market segment and no response to requests to the Treasury Select committee to review the situation, Co-op Bank, with heavy heart, felt it was left with no alternative but to pull out of the market.

With some 55,000 new undischarged bankrupts every year, the government needs to step in and take measures to ensure that all existing and new banks play a full and active part in the basic banking market.

Let’s hope this shot across the bows from by The Co-operative Bank will prove be the much-needed catalyst to get the key players round the table.

My verdict – HIT – a difficult decision, but hopefully one which will encourage new dialogue and action from all parties.

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