Will your Lloyds account be transferred to the Co-op?
How Co-op's plan to buy 632 branches from the Lloyds banking group will affect customers
MILLIONS of Lloyds-TSB customers will see their accounts taken over by the Co-operative Bank in one of the biggest High Street banking upheavals in recent years.
The Co-op has agreed to buy 632 branches from the Lloyds banking group, including all of its Cheltenham & Gloucester branches, and is set to gain 4.8 million customers. The deal is subject to FSA approval but is expected to be complete by the end of 2013. So what will be the affect on Lloyds customers?
WHICH LLOYDS ACCOUNTS WILL BE TRANSFERRED TO THE COOP?
All Cheltenham & Gloucester branches and Lloyds TSB Scotland branches are included in the sale. A further 283 Lloyds TSB branches in England and Wales will be sold. You can check if your branch is included here. If you are a mortgage borrower, you will have to wait and see whether your mortgage will be transferred to the Co-op as the banks are yet to reveal how this will work.
WHAT DO YOU NEED TO DO?
At the moment, nothing. Lloyds will be writing to all customers affected by the transfer nearer the time. No branches will be closed.
WHAT WILL HAPPEN NEXT?
All Lloyds branches to be sold will undergo a rebrand before they transfer to the Co-op. These branches will change to 'TSB' in spring 2013 and the names 'Lloyds' and 'Cheltenham & Gloucester' will be dropped. This rebranding will be seen on branch signs as well as on cheque books, bank statements and bank cards. Lloyds has said that all account numbers and sort codes will remain the same, and customers will be reissued cards with the new TSB brand. Everything will eventually rebrand again as Co-op after the sale goes through at the end of next year.
HOW DO THE TWO BANKS COMPARE?
The Co-op received a customer score of 86 per cent in the group's latest survey, while Lloyds received 58 per cent. Lloyds provides better rates on some products, such as an easy-access savings account. Many customers choose Co-op because of the bank's ethical policy, such as its refusal to invest in companies involved in the manufacture or sale of indiscriminate weapons such as cluster bombs.
HOW CAN I STOP MY ACCOUNT BEING TRANSFERRED?
Lloyds is not planning to offer customers the choice to opt out of the transfer but customers will be free to switch their bank accounts themselves after the move is complete.