Co op have failed to renew my overdraft with no notification

[hrhpod]

I reclaimed my charges last year from the co op. it was only a couple of hundred quid but it was welcome nonetheless.
I got the standard, 'we're not really admitting we did anything wrong but here's the money' letter. I'm sure many of you are familiar....
Anyhow....ever since then they've been refusing me for services.
I didn't put two and two together at first but I'm convinced this must have something to do with it because I'm as good as gold financially.
First of all I got advised when I was about to apply for a loan that I had 'adverse bureau information'. I just assumed that this was due to the fact that I was starting a business and had been credit checked by the business bank for the overdraft facility.
Then, a few months later, having acquired the loan elsewhere, I was sorting out my credit cards and things. I don't owe any money on my cards btw - but I use them as and when I need to to extend the month's salary.
I decided to change to a better card than the one I have with the bank but got refused. Again I thought it was strange but ignored it.
Today, I happened to be online paying a few bills and I notices that my overdraft facility had been reduced by £500. Now, as it happens, all my accounts are in credit, so it hasn't affected me - but the sneakiness of it bothered me. So I phoned the co op to find out why the overdraft had been reduced. Now basically I pay a monthly fee for my account and as a result of that, I get a small overdraft - and this is still in place - I assume because I pay for the account service. The extension that I had arranged, which has been there for a couple of years now, usually rolls on from one year to the next but this year, mysteriously, had disappeared with no notification.

When I phoned to quiz them, I was informed that because there was 'adverse bureau information' on my credit file from experian, they would not be able ot offer me ANY services and anything I had with them would not be renewed.

Now, I have a mortgage, savings, credit card and 2 current accounts.
I've had minimal charges over the years as I manage my accounts quite well. I pay my salary in every month without fail.
I have never defaulted on a payment to them for anything.
So I went online to get my credit report from experian.
There was one obvious red stain which appears to be a bank account from a few years back, which I had written to the bank to have closed but which appears to have continued to be active and has a small balance of £4 in it (credit balance!). There seems to have been some attempt to take funds out of it a few months ago and then the account has obviously been frozen. I've written to the bank to request information on the activity and to get it properly closed.
However, since there appears to be a credit balance in the account, it seems unlikely to be sufficient reason for co op to put a wall down in front of me.
I was also late paying my virgin bill twice because they moved me onto paperless billing as an administrative error, so I didn't get my bill - but that was settled and they apologised and gave me a refund - so I'm annoyed that it's showing on my credit report. Even so, surely this cannot be a serious issue?

Other than this, the credit report was all green! Everything paid on time, no defaulting payments anywhere. Despite this, my credit score was a measly 309 - described as 'very poor' and I was informed by experian that I very likely had serious repayment issues.
Now, this is obviously false. I manage my accounts carefully, pay my bills by DD or SO, am not currently overdrawn, pay off my cards on time, own a stake in a business and have money in savings - so what the hell is going on?

Also, during the period the Co op has been refusing me, my Virgin credit card was renewed, I got a new mobile phone contract, I got business banking facilities etc.

Is it possible that the Co op have falsely reported me as being a bad credit risk to experian and are busy blaming experian for their refusal to extend me their services as a retaliation for complaining about my charges?
It seems bizarre but I had no problems at all until I asked for my charges back and since then they've turned me down for everything.
Has anyone else had this machiavellian business?

[Hopeful1]

What a strange tale. A not so co-operative Co-op, hey? As you say, it seems strange that other companies have been happy to lend to you despite this 'negative info'.

If the Co-op were reporting any negative info it would show on your file. Out of curiosity, have you looked at the info held by Callcredit or the other one - i can't remember the name now - ah!!!

It would not be unheard of for a bank to throw its toys out of the pram as it were, following a successful claim for charges. There is also some unusual behaviour by some institutions as a result of the current financial climate.

[hrhpod]

It is a strange tale isn't it. I'm frankly bewildered.
I spoke to my business bank manager today who confirmed that they had credit scored me since the time that this began with the co op and that nothing nasty had turned up or I wouldn't have been able to get my business banking set up at the end of last year.
I find myself wondering if those of us who've gotten wise to the whole charges thing and reclaimed and are thus not providing the banks with easy pickings by running up charges, are the first to be elbowed out with the credit crunch. That's what happened with Egg isn't it - they dropped the regular payers rather than the people with big bills.
They don't want clever customers who make no mistakes - they want the medium risk people who get charges but pay them like sheep.
I know that co op have stopped offering a lot of their mortgages because of the financial crisis. Presumably the failure to renew overdrafts wipes a lot of stuff off their books and is part of the same policy.
I emailed co op with questions regarding this but have yet to get a reply.
My business manager is putting me the way of their personal banking section and I may have to switch from the supposedly 'ethical' bank to the bank I have my business account with.
It appears the co-op's precious ethics don't apply to their customers.

[Hopeful1]

Unfotuantely, i don't think the word 'ethics' exists when it comes to money. I certainly don't blame you for moving your business - that's the only thing that will hurt them.

[hrhpod]

that's my thought.
I've got savings and a mortgage with them and if I move, I'll move the bloody lot.
I've already got a couple of old accounts open so if I need to parachute in the short term if they get stroppy, I can - at very quick notice. I don't like being bullied and I don't intend to stand for it.
I just wonder how many other people are going to get this sort of thing and not realise what's behind it.

[Gump]

Hi hrhpod,

I'm equally bewildered, I've had a credit card with them for about 6 years. Been a very good customer. All of a sudden after paying off what was owed on the balance they reduced the limit down from £10000 to £500 with no notice whats so ever!!
Now this really annoys me as when I cleared it I asked the customer service people if there was any reason that they should suddenly reduce my limit, as I said I have a baby on the way and may well need it again. They kept saying that "they saw no reason" why they would reduce the limit as long as I kept using the card by at least one transaction a month. It looks like as soon as they saw the money they grabbed it and they are not admitting in any shape or form that they lied to me over this in any way. I think not lying should be the most basic part of being a so-called 'ethical' organization, never mind all the saving the world rubbish.

[lickthewallfatboy]

an overdraft isn't regulated by Part V of the Consumer Credit Act, as long as it has conformed to the OFT Determination under s.74 CCA 1974.

Section 74 of the Act provides for the exclusion of certain agreements from Part V. It provides as follows (so far as material):
"74. – (1) This part… does not apply to –
(b) a debtor-creditor agreement enabling the debtor to overdraw on a current account, …
(3) Subsection 1(b) … applies only where the OFT so determines, and such a determination –
(a) may be made subject to such conditions as the OFT thinks fit …
(3A) …. in relation to a debtor-creditor agreement under which the creditor is …. a bank …. the OFT shall make a determination that subsection 1(b) above applies unless it considers that it would be against the public interest to do so.

THE DETERMINATION: The Determination (which is signed by the Director of Fair Trading) is made under section 74(3) of the Act. I set it out in full:

"1. Under the powers conferred upon me by s.74(3) and (3A) and s.133 of the Consumer Credit 1974, I, the Director General, being satisfied that it would not be against the public interest to do so, hereby revoke with effect from 1st February 1990 the Determination made by me in respect of Section 74(1)(b) and dated 3 November 1983 and now determine that with effect from 1st February 1990 Section 74(1)(b) shall apply to every debtor-creditor agreement enabling the debtor to overdraw on a current account, under which the creditor is a bank.
2. This Determination is made subject to the following conditions:-
(a) that the creditor shall have informed my Office in writing of his general intention to enter into agreements to which the Determination will apply;
(b) that where there is an agreement between a creditor and a debtor for the granting of credit in the form of an advance on a current account, the debtor shall be informed at the time or before the agreement is concluded:
- of the credit limit, if any,
- of the annual rate of interest and the charges applicable from the time the agreement is concluded and the conditions under which these may be amended,
- of the procedure for terminating the agreement;
and this information shall be confirmed in writing.(c) that where a debtor overdraws his current account with the tacit agreement of the creditor and that account remains overdrawn for more than 3 months, the creditor must inform the debtor in writing not later than 7 days after the end of that 3 month period of the annual rate of interest and charges applicable.
3. In this Determination the terms 'creditor' and 'debtor' shall have the meanings assigned to them respectively by Section 189 of [the Act]. The term 'bank' includes the Bank of England and banks within the meaning of the Bankers' Books Evidence Act 1879 as amended."