The Co-operative Bank is to stop paying £15 ($23) to its customers who make a complaint about products or services.
The bank, which is facing a $2.27bn capital shortage, says the plan is unrelated to the debt restructuring programme that aims to recoup $1.5bn in the coming year.
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The British-based mutual also said customer complaints would still be dealt with in the same way.
The Co-op is writing to its retail banking customers to say it is removing the scheme, as part of a review of its service level guarantees effective from 16 September.
It is making the changes after seeing a one third drop in the number of customers using the service level guarantee system over the last year.
The Co-op said the rule change could improve its complaints procedure. "This move improves the speed of resolution for complaints, increasing our ability to provide appropriate recompense to customers," the bank said.
"It brings us into line with the industry and no customer will experience any detriment as a result of this decision," the Co-op commented.
Customers for the Co-op’s Business DirectPlus and Community DirectPlus services will still receive a cash payout of £25 ($38) if the bank fails to live up to its service level guarantees.
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