Co-operative bank

[sloane82]

Hi I have received a section 87 1 regarding my bank overdraft which was a student account which they then converted to a current, account which they should have not done as I was studying a course, a degree with the open university, as I am now in financial difficulty and I have contacted stepchange what can I do as they will be passing this onto a debt collection agency I will be only offering the £1 a month payments as I am in financial difficulty.

[warwick65]

They may have converted your account as the student account is no longer available

https://www.co-operativebank.co.uk/student-accounts

[sloane82]

No the student account is still available but apparently I only put the course as for 1 yr and I got another year leway.

[sloane82]

Oh right it looks like it like it has.

[sloane82]

But it does not make any sense why they have converted it to another account as this is now contradiction of a contract and null and void.

[warwick65]

I would suggest you look at the original terms and conditions. There maybe a clause allowing the change. After all a student account is just a normal account with added perks.

[sloane82]

They are now putting charges on the account and as I am in financial difficulty they have frozen the charges and interest but are now going to pass the debt onto a debt collection agency.

[sloane82]

Which is unfair as the contract to begin with has now changed.

[warwick65]

Why is it unfair. They have frozen charges etc. Contracts can be changed. Could they have ever written to you and told you.

[sloane82]

I'm not sure if I signed an agreement with them so they have changed my account from one to one with interest and charges.

[warwick65]

When was the account opened? You could always write to them and ask for a copy of your contract

[des8]

Looking at the T&Cs of Coop student accounts,it clearly states your student account automatically converts to standard account one year after the date you told them in your original application form that your course would end.
You told them a one year course (post 3). Did you confirm prior to taking up the extra year, that you would be continuing as a student?
If you did not seek their prior agreement to vary the contract, I doubt you have legally any reason to complain.as how would they know your student days had been extended?

Student account T&Cs (https://www.co-operativebank.co.uk/a...conditions.pdf)
16.2 If you have a student account, it will automatically convert to a standard current account one year after the date you told us in your application form that your course would end. We may also convert your account if you don’t pay your student loan or other funding into your account.
16.3 If we convert your account, we’ll tell you at least two months before the change takes effect

[sloane82]

I told them I was still studying I have also been doing courses with the Open University and I have told them this on many occasions.

[warwick65]

Yes but they are quite clear the account no longer exists. Also there may be an intensity and level of study clause.

[des8]

You may have told them,but was this prior to the end of your first year of study?
Besides actually telling them you also needed to obtain their agreement to vary the contract prior to the end of your first year of study.