Lloyds branch sale: what it means for you - Banking - News - Moneyfacts


Lloyds branch sale: what it means for you

Lloyds branch sale: what it means for you

Category: Banking

Updated: 01/05/2014
First Published: 26/07/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
The Co-operative Bank has agreed to buy 632 Lloyds and Cheltenham & Gloucester branches in a deal that, if approved, will complete towards the end of 2013.

It will mean that the Co-op will buy the branch and most of its customers.

Specifically, Lloyds is offloading:

  • All it's Cheltenham & Gloucester branches
  • All it's Lloyds TSB Scotland branches
  • Some of it's Lloyds TSB branches in England and Wales

Find out if your branch is due to be sold to The Co-operative Bank.

penny pigAlthough The Co-operative Bank and Lloyds Banking Group have agreed this sale, it has to be approved by the European Commission, the UK Treasury and the Financial Services Authority before the branch transfer can take place.

Why is Lloyds selling these branches to The Co-op?

Lloyds Banking Group has been propped up by taxpayer money since 2008, following its ill-fated takeover of the HBOS group.

The European Commission ruled that in return for the 41% taxpayer stake, Lloyds would have to scale back its operation in order to promote competition on the UK high street.

Consequently Lloyds has been forced to sell 632 branches as part of the process named "Project Verde".

What will this mean for you?

At present this proposed sale still has to be approved by regulators as well as UK and European authorities. Approval will take some time, as will the transfer. Customers in affected branches are expected to receive Co-op branded cards and chequebooks in Spring 2013, with full completion of the sale expected towards the end of next year.

Bank accounts will retain the same sort codes and account numbers, and Lloyds will continue operating background systems for a few years after the takeover to ensure a smooth transition.

Branch staff will remain the same, and no branches are being closed as part of the sale. However, according to The Co-operative Bank, from next year the affected branches will be rebranded with "TSB" logos, presumably until such time as they are fully integrated with the rest of The Co-operative Bank.

Fixed rate mortgage and savings customers will have their introductory rates honoured, although variable rate customers will be migrated to equivalent Co-operative Bank products.

Can you stay with Lloyds?

There's nothing to stop you continuing to bank with Lloyds. However, this will involve you switching bank accounts to an unaffected Lloyds branch closer to the time of the sale.

What next?

Compare bank accounts
PDF of affected Lloyds and C&G branches

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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