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  • FIRST POST
    • Jphilg
    • By Jphilg 11th Jul 17, 11:29 PM
    • 1Posts
    • 1Thanks
    Jphilg
    LBG change overdraft charging structure
    • #1
    • 11th Jul 17, 11:29 PM
    LBG change overdraft charging structure 11th Jul 17 at 11:29 PM
    Hi All

    First post after lurking for quite sometime.

    Lloyds, BOS and Halifax will shorty announce that they are simplyfying their overdraft fees across all brands.

    The new structure will see a charge of £0.01 for every £7 of an overdraft being used which will debit the account DAILY.


    All over fees such as unarranged overdraft fees will be removed.

    The accounts themselves will remain the same - i.e Halifax Reward will still pay £3 to qualifying customers.

    The group say 9/10 customers will see their charges reduce.

    Obviously this will impact big overdraft users who, for example, would have been capped at £3 a day if they are with Halifax.
    Last edited by Jphilg; 12-07-2017 at 12:10 AM. Reason: Wrong information
Page 2
    • Westie983
    • By Westie983 12th Jul 17, 7:39 PM
    • 3,713 Posts
    • 13,730 Thanks
    Westie983
    Lloyds advised me provided it is cleared funds and it is transferred on the internet I then have up until midnight. I have done this a few times and never received any charges. I like you thought at one time it was close of business.
    Originally posted by MABLE
    It will be changing to 2:30 from 3:30, after that payments will bounce.

    Fee structure will be calculated as of the balance at 2:30 each day.

    Wait for the letter to arrive 2nd August for more information.

    Westie983
    Save 12k in 2017 #16 Total £15130/£12000 126.08%
    Sealed Pot Challenge ~ 10 #97 Total (£252) +£158/£500 = 82.00% ( x 10)
    Xmas 2017 £1 a Day #6 Total £250/£365 = 68.49%
    Virtual Sealed Pot #1 Total £1050/£1000 = 105.00%
    £2 Savers Club 2017 #3 Total (£1450)+£50/£2000 = 75.00%

    Total £18340/£15865 = 115.60%

    I'm a Board Guide on Budgeting & Bank Accounts, Debt-Free Wannabe, Disability Money Matters, and Savings & Investments. I'm a volunteer helping the boards run smoothly, but I'm not a moderator, and do not read all posts. If you see an inappropriate/illegal post then email forumteam@moneysavingexpert.com
    • Vortigern
    • By Vortigern 12th Jul 17, 7:58 PM
    • 2,221 Posts
    • 1,430 Thanks
    Vortigern
    ... you can only spend whats in your account plus £7 you will no longer *from Nov be able to go overdrawn for more then £7.
    Originally posted by Westie983
    What if my account is empty and I make a contactless payment of up to £30. Assuming this is an offline transaction, I could go more than £7 overdrawn.

    I could make several further contactless, offline payments.

    This not something I would try as there would be little benefit in such a small free overdraft.

    On the whole, I think the proposed changes should help those who can't control their spending to keep within their budgets.
    • Westie983
    • By Westie983 12th Jul 17, 9:59 PM
    • 3,713 Posts
    • 13,730 Thanks
    Westie983
    What if my account is empty and I make a contactless payment of up to £30. Assuming this is an offline transaction, I could go more than £7 overdrawn.

    I could make several further contactless, offline payments.

    This not something I would try as there would be little benefit in such a small free overdraft.

    On the whole, I think the proposed changes should help those who can't control their spending to keep within their budgets.
    Originally posted by Vortigern
    At the moment the proposed information given is that the contactless payment will not go through, but it may work with petrol as they only authorise £1, so its still up in the air, but the training launched today says that payments will be declined if you are taken over your agreed overdraft.

    Westie983
    Save 12k in 2017 #16 Total £15130/£12000 126.08%
    Sealed Pot Challenge ~ 10 #97 Total (£252) +£158/£500 = 82.00% ( x 10)
    Xmas 2017 £1 a Day #6 Total £250/£365 = 68.49%
    Virtual Sealed Pot #1 Total £1050/£1000 = 105.00%
    £2 Savers Club 2017 #3 Total (£1450)+£50/£2000 = 75.00%

    Total £18340/£15865 = 115.60%

    I'm a Board Guide on Budgeting & Bank Accounts, Debt-Free Wannabe, Disability Money Matters, and Savings & Investments. I'm a volunteer helping the boards run smoothly, but I'm not a moderator, and do not read all posts. If you see an inappropriate/illegal post then email forumteam@moneysavingexpert.com
    • One-Eye
    • By One-Eye 13th Jul 17, 12:08 AM
    • 37,606 Posts
    • 5,980,727 Thanks
    One-Eye
    a) In October I have an arranged overdraft limit of £500 but an overdraft of £1000. What happens in November?

    b) In October I have an arranged overdraft limit of £1000 and an overdraft of £1000. Please can I have my arranged overdraft limit reduced to £7 in November?
    • GingerFurball
    • By GingerFurball 14th Jul 17, 9:03 AM
    • 928 Posts
    • 880 Thanks
    GingerFurball
    It will be changing to 2:30 from 3:30, after that payments will bounce.

    Fee structure will be calculated as of the balance at 2:30 each day.

    Wait for the letter to arrive 2nd August for more information.

    Westie983
    Originally posted by Westie983
    No it won't. You'll still have until the end of the day to clear any overdrawn balance.

    The 3:30 (changing to 2:30) cut off is to ensure Direct Debits and cheques that debit the account are honoured.
    DEBT FREE!

    Debt free by Xmas 2014: £3555.67/£4805.67 (73.99%)
    Debt free by Xmas 2015: £1250/£1250 (100.00%)
    • Dobbibill
    • By Dobbibill 14th Jul 17, 1:09 PM
    • 2,181 Posts
    • 3,313 Thanks
    Dobbibill
    a) In October I have an arranged overdraft limit of £500 but an overdraft of £1000. What happens in November?
    Originally posted by One-Eye
    My understanding is you will be charged on the existing structure for October and new structure for November so during November there will be an overlap period where you are being charged for both.

    b) In October I have an arranged overdraft limit of £1000 and an overdraft of £1000. Please can I have my arranged overdraft limit reduced to £7 in November?
    You can only reduce your overdraft limit if you are in credit to the amount you want to reduce it by.
    Anything over £7 will decline unless it is below the merchants floor limit, where they don't contact the bank for authorisation or contactless but you will not be charged for more than the arranged overdraft of £7.

    Chip & PIN can kick in randomly for contactless for security checks, this will cause it to be declined - it will then only work once you have sufficient funds.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    A person who never made a mistake, never tried anything new.
    • Chrysalis
    • By Chrysalis 14th Jul 17, 10:38 PM
    • 1,946 Posts
    • 888 Thanks
    Chrysalis
    Personally I like the changes

    Basically as is now there is a fixed fee and interest on authorised overdrafts, in my case I have a £200 overdraft limit (which I dont use), but if I used it the fixed fee would make it a very expensive way of borrowing money, before the MSE court case the authorised overdraft was a very cheap way of borrowing money. So in other words the MSE court case made things worse for lloyds authorised overdrafts.

    So now is a fixed fee and interest charged daily.

    The new system will remove the fee, but increase the interest rate, those like me with a low limit will find it cheaper to use, but those with larger limits will find it more expensive, which is how I think it should be. So an improvement, but a warning to those who will lose out from this change.
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