Cumberland Meeting refused online banking
‘We think a local building society with a commitment to its community should be helping charities to use online banking.'
Cumberland Area Meeting has been forced to change banks after its regular building society refused to provide it with online banking facilities.
Richard Parker, treasurer of the Meeting, said that the desire to move to online banking was to simplify the charity’s accounting processes. ‘Most people nowadays would regard this as a basic banking function,’ he told The Cumberland News. ‘We were amazed when the Cumberland Building Society repeatedly refused our request and now we are obliged to change banks.’
Christine Sutherland, clerk of Cumberland Area Meeting, said that the policy is ‘unfair and discriminates against small local charities like ours’. She said that the Area Meeting has banked with the building society for many years.
‘We think a local building society with a commitment to its community should be helping charities to use online banking, so we are dismayed that they are defending a policy which is presumably designed to force charities to go elsewhere.’
Claire Deekes, head of retail distribution at the Cumberland Building Society, said: ‘Over recent years, the banking regulator’s requirements in respect of opening new charity accounts have become more stringent, particularly in relation to money laundering and identification.
‘In light of this, we have had to stop opening new charity accounts for the moment, while we work out how to meet the regulator’s requirements in an effective and efficient way, but we will revisit this decision on this once we have a clearer view on what would be required in the longer term.
‘We are disappointed that we aren’t able to help those charities that wish to bank with us at this time.’
The Quakers said they have suggested that the building society could introduce a small charge or levy to cover the cost of online banking to charitable account holders.
