Coop Divorces Trust Co.; Cites Customer Complaints

The Coop and Harvard Trust have agreed to a "friendly divorce," Coop General Manager Howard W. Davis announced yesterday.

Davis said that complaints from Coop members had caused the "divorce," which will terminate on July 1 the 18-month arrangement under which the bank provided credit cards to Coop members and handled all Coop billing and charge accounts. Citing the financial adequacy of the old plan, he stressed that the decision was made primarily for "reasons of practicality."

Although charge purchases at the store had dropped during the arrangement. Davis cited membership displeasure with the store's marriage to its next door neighbor as the prime reason for the break. "Many of our members felt that credit arrangements in a store such as the Coop are an intimate relationship between the store and the people. And that's a lot different than bank credit," Davis said.

"This is something we didn't take into account when we began the arrangement with Harvard Trust," he added.

Familiar Cards

Under the new plan, Coop members will once again receive the familiar Coop charge-cards and will be billed by the Coop rather than by Harvard Trust. The Coop will levy a finance charge on all late payments but members will continue to receive a rebate on all purchases. Under the plan no CAP or Master Charge cards will be accepted for charging at the Coop.

In addition to abolishing the Coop/

CAP and Coop/Master Charge arrangements, Harvard Trust will leave the credit card business entirely. "Despite our best efforts we have been unable to cope with problems affecting credit cards in general and our own cards in particular," said Don S. Greer '30, president of Harvard Trust. Greer cited "steadily growing losses due to the problems of credit card frauds, excessive credit losses, thefts, and mail pilferage."

Same Service

Greer assured Harvard Trust customers that the bank would continue its "no-minimum balance, service-charge free" checking accounts.

The Coop, meanwhile, announced a number of changes in the store's operating procedures. Because of heavy volume near closing hours, the store will remain open until 5:45 p.m. instead of 5:30 p.m., opening at 9:20 a.m. instead of 9 a.m. Employees' hours will be juggled accordingly. In addition, Coop officials plan to resume the check-cashing facilities for members which were discontinued during the Coop's marriage to Harvard Trust.

New Threads

Sanford Litwin, who recently became Coop merchandise manager, announced a new line of shirts, belts, and pajamas which he said "could be offered at the prices members were asking for without sacrificing one stitch of value from the branded lines."

With yesterday's announcements, Coop officials promised greater responsiveness to suggestions and needs of its membership, notably the student clientele, and expressed a cautious optimism for this year's rebate levels.

"We are not Filene's. We are not a department store. We are the Coop. I want to stress that," said Davis.