Which? response to Co-op ‘bail-in’

Richard Lloyd, Which? executive director, said:

“It’s good to see a bank sorting out its problems without the need for a taxpayer bailout and the Co-operative have assured their retail customers that they will not be affected.  Their money, up to £85,000, or £170,000 for a joint account per licenced financial institution, is protected under the Financial Services Compensation Scheme (FSCS).

“However the Co-op will need to reassure their customers that this bail-in won’t affect the ethos or good customer service that their consumers have come to expect.  And they, and the Prudential Regulation Authority, must also ensure a fair outcome for those people who invested in  Permanent Interest Rate Bearing Shares.”