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.
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By GlobalData"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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