The Co-operative Bank Responds To FCA's Plans To Improve Competition In The Current Account Market

3 November 2016

2 min read

Matthew Carter, Products and Marketing Director, at The Co-operative Bank, comments: “Our own research shows that an estimated two-in-five (40 per cent) of overdraft holders, who have changed to a new provider since the introduction of the Current Account Switching Service in 2013, have incurred unexpected costs and charges as a result of dipping into the red. Those who use their overdrafts on a regular basis need to take fees and charges into consideration. However, it’s hard for consumers to do this research as complex charging structures make it difficult to calculate exactly what costs will apply to them.

“The FCA’s plans to provide consumers with greater oversight of the costs and charges associated with their account overdraft are a welcome step in the right direction.

“By reducing and simplifying a number of charges, and going beyond the industry proposed monthly cap by having a £60 quarterly cap, we have already developed an overdraft for our customers which is designed to put them in control of their finances, ensuring they are not penalised for small mistakes. This was guided by research with our own customers, those of other banks, and consumer group Which? to ensure it addresses actual overdraft behaviour and fulfils customers’ needs. Unlike other banks, we also continue to offers rewards to authorised overdraft customers even if they go into the red."

Key features of The Co-operative Bank overdraft:

  • A clear, simple and transparent charging structure that makes borrowing cheaper for all of our customers;
  • It is designed to put customers in control of their finances and not penalise customers for small mistakes or occasionally slipping into a debt position;
  • £20 buffer zone and discretionary waiver;
  • No unpaid item fees;
  • Industry-leading quarterly cap of £60 on charges, as opposed to the industry norm of a monthly cap;
  • Reduction in informal charge, lowering the overall cost of unauthorised borrowing;
  • Everyday Rewards customers can earn up to £5.50 per month on their account, even if they go into the red. Other providers remove reward benefits if customers go overdrawn.


Notes to Editors:

About the Co-operative Bank

the Co-operative Bank plc provide a full range of banking products and services to almost 5 million retail and SME (Small and Medium Sizes Enterprises) customers. The Bank is fully committed to values and ethics in line with the principles of the co-operative movement.

For further information please contact

Nicki Parry, Head of Media Relations

The Co-operative Bank Press Office

Tel: 07734 002 983


Twitter: @CooperativeBank


Head of External Communications & Sustainability

Dan Chadwick

Mobile: 07724 701319

The Co-operative Bank Press Office

Landline: 0151 271 1985

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