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  • FIRST POST
    • aza93
    • By aza93 3rd Dec 17, 3:59 PM
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    aza93
    Lloyds Bank Overdraft Charges -Charged 6 usage fee
    • #1
    • 3rd Dec 17, 3:59 PM
    Lloyds Bank Overdraft Charges -Charged 6 usage fee 3rd Dec 17 at 3:59 PM
    Hi,

    Fir time posting here, so apologies of I'm posting this in the wrong section. I'm a Lloyds banking customer with a big overdraft which now means that I have to pay about 90 a month as a result of the changes made at the start of the month. Just finished my master's and now in full time work so I'm fortunate enough that I should be out of my overdraft soon.

    I've noticed Lloyds have taken a 6 overdraft usage fee and have also taken 32 yesterday for interest. Should I be paying these fees this month? I plan to go into my branch on Monday but I thought I'd ask in here first to see if it's been correctly taken or not.

    If anyone could help it would be greatly appreciated

    Thanks,

    Aaron
Page 1
    • YorkshireBoy
    • By YorkshireBoy 3rd Dec 17, 4:14 PM
    • 29,614 Posts
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    YorkshireBoy
    • #2
    • 3rd Dec 17, 4:14 PM
    • #2
    • 3rd Dec 17, 4:14 PM
    Some of the fees will be from October (a month in arrears), and some accumulating daily from the implementation of the new charges in November.


    Going forward you'll just have the new charges.
    • Anthorn
    • By Anthorn 5th Dec 17, 12:43 PM
    • 3,278 Posts
    • 841 Thanks
    Anthorn
    • #3
    • 5th Dec 17, 12:43 PM
    • #3
    • 5th Dec 17, 12:43 PM
    Hi,

    Fir time posting here, so apologies of I'm posting this in the wrong section. I'm a Lloyds banking customer with a big overdraft which now means that I have to pay about 90 a month as a result of the changes made at the start of the month. Just finished my master's and now in full time work so I'm fortunate enough that I should be out of my overdraft soon.

    I've noticed Lloyds have taken a 6 overdraft usage fee and have also taken 32 yesterday for interest. Should I be paying these fees this month? I plan to go into my branch on Monday but I thought I'd ask in here first to see if it's been correctly taken or not.

    If anyone could help it would be greatly appreciated

    Thanks,

    Aaron
    Originally posted by aza93
    Not true or you are being overcharged: Lloyds bank did away with the 6/month overdraft usage fee and fees are now a flat 0.01 per day per 7 borrowed. According to Lloyds Banking Group if you are always in overdraft you will now be paying less or in their words a "winner".
    https://www.moneysavingexpert.com/news/banking/2017/11/halifax-and-lloyds-overdraft-changes---the-winners-and-losers
    • Mr Goodkat
    • By Mr Goodkat 5th Dec 17, 4:20 PM
    • 396 Posts
    • 235 Thanks
    Mr Goodkat
    • #4
    • 5th Dec 17, 4:20 PM
    • #4
    • 5th Dec 17, 4:20 PM
    Not true or you are being overcharged: Lloyds bank did away with the 6/month overdraft usage fee and fees are now a flat 0.01 per day per 7 borrowed. According to Lloyds Banking Group if you are always in overdraft you will now be paying less or in their words a "winner".
    https://www.moneysavingexpert.com/news/banking/2017/11/halifax-and-lloyds-overdraft-changes---the-winners-and-losers
    Originally posted by Anthorn
    It is true.

    Usage fees and interest were charged a in arrears prior to the change so will relate to the period prior to the new charges. From the start of November charges are calculated and deducted daily so this should be for the OP the last monthly fee and big interest charge in one go instead they will be paying daily.
    • StokieBecks
    • By StokieBecks 5th Dec 17, 5:49 PM
    • 4,401 Posts
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    StokieBecks
    • #5
    • 5th Dec 17, 5:49 PM
    • #5
    • 5th Dec 17, 5:49 PM
    Since November you will have paid a daily fee but you also will have paid your usual lump sum at the start of November and December as your overdraft charges were always charged in arrears. From now on it will just be the daily xharge
    • Anthorn
    • By Anthorn 5th Dec 17, 6:02 PM
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    Anthorn
    • #6
    • 5th Dec 17, 6:02 PM
    • #6
    • 5th Dec 17, 6:02 PM
    It is true.

    Usage fees and interest were charged a in arrears prior to the change so will relate to the period prior to the new charges. From the start of November charges are calculated and deducted daily so this should be for the OP the last monthly fee and big interest charge in one go instead they will be paying daily.
    Originally posted by Mr Goodkat
    No. It was charged at the end of the statement period. So fees charged in December relate to November not October. If they relate to October then Lloyds bank must be leapfrogging over a month, alternatively charging two months in arrears which I know they don't do.

    Just to be sure I looked at my current account and credit card in Lloyds Online Banking and sure enough all charges, fees and interest relate to November, not October.
    • Dobbibill
    • By Dobbibill 5th Dec 17, 6:16 PM
    • 2,541 Posts
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    Dobbibill
    • #7
    • 5th Dec 17, 6:16 PM
    • #7
    • 5th Dec 17, 6:16 PM
    No. It was charged at the end of the statement period. So fees charged in December relate to November not October. If they relate to October then Lloyds bank must be leapfrogging over a month, alternatively charging two months in arrears which I know they don't do.

    Just to be sure I looked at my current account and credit card in Lloyds Online Banking and sure enough all charges, fees and interest relate to November, not October.
    Originally posted by Anthorn
    Hi Anthorn - old charging structure was from 2nd day of one month until 1st day of following month - customers get notification of charges after that and the charges debit on 1st of following month.

    Ie 3rd Oct to 1st Nov debit on 1st Dec.

    OP - this is the last usage fee that will debit now that the overlap period is done.
    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.
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    • Mr Goodkat
    • By Mr Goodkat 5th Dec 17, 6:55 PM
    • 396 Posts
    • 235 Thanks
    Mr Goodkat
    • #8
    • 5th Dec 17, 6:55 PM
    • #8
    • 5th Dec 17, 6:55 PM
    No. It was charged at the end of the statement period. So fees charged in December relate to November not October. If they relate to October then Lloyds bank must be leapfrogging over a month, alternatively charging two months in arrears which I know they don't do.

    Just to be sure I looked at my current account and credit card in Lloyds Online Banking and sure enough all charges, fees and interest relate to November, not October.
    Originally posted by Anthorn
    Wrong again!

    Poster above has explained how the usage charge and interest relates to the period before the new charges started.
    Last edited by Mr Goodkat; 05-12-2017 at 6:58 PM.
    • Anthorn
    • By Anthorn 5th Dec 17, 8:15 PM
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    Anthorn
    • #9
    • 5th Dec 17, 8:15 PM
    • #9
    • 5th Dec 17, 8:15 PM
    Hi Anthorn - old charging structure was from 2nd day of one month until 1st day of following month - customers get notification of charges after that and the charges debit on 1st of following month.

    Ie 3rd Oct to 1st Nov debit on 1st Dec.
    Originally posted by Dobbibill
    And i.e. 3rd Nov to1st Dec.

    Therefore I was correct: The old charges don't appear on December statements. At least not on mine! As I said, for October charges to be on the December statement Lloyds would have to be charging two months in arrears!
    Last edited by Anthorn; 05-12-2017 at 8:18 PM.
    • Anthorn
    • By Anthorn 5th Dec 17, 8:31 PM
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    Anthorn
    Wrong again!

    Poster above has explained how the usage charge and interest relates to the period before the new charges started.
    Originally posted by Mr Goodkat
    ... on the November statement. The December statement details November charges. That is unless my accounts are different to everyone else's which I doubt.
    • YorkshireBoy
    • By YorkshireBoy 5th Dec 17, 8:39 PM
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    YorkshireBoy
    From a version of the old account T&Cs...
    Other charges, such as the Monthly Overdraft Usage Fee, overdraft interest or Unplanned Overdraft Daily Fees, are worked out at the end of the monthly billing period and we’ll always let you know the amount before they are taken from your account.

    http://www.lloydsbank.com/assets/media/pdfs/m60167-bankingcharges.pdf
    So they work out October's charges at the end of the first working day of November, then tell you what they are and when they'll take 'em...which is a month later at the end of the first working day in December.

    So they are, in effect, 2 months in arrears.

    Agree now?...or still think you're a special case?
    • StokieBecks
    • By StokieBecks 5th Dec 17, 9:30 PM
    • 4,401 Posts
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    StokieBecks
    Anthorn those details on December statement aren't November charges as November was the start of the daily charges. Therefore the daily fees you were paying throughout November was the current fees. The lump sump that went out at beginning of December was definitely October's charges
    • Anthorn
    • By Anthorn 5th Dec 17, 10:02 PM
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    • 841 Thanks
    Anthorn
    From a version of the old account T&Cs...So they work out October's charges at the end of the first working day of November, then tell you what they are and when they'll take 'em...which is a month later at the end of the first working day in December.

    So they are, in effect, 2 months in arrears.

    Agree now?...or still think you're a special case?
    Originally posted by YorkshireBoy
    No. October's charges are added to the November statement on the first working day of November. I believe that people are confused over the payment due date relationship to the statement date. On my accounts the due date is the first working day of the following month. In my case statement date 8th November containing October transactions and charges due to be paid on 4th December. Then the December statement will detail November transactions and charges due to be paid on the first working day of January.

    As I've already said, if October charges appear on the December statement Lloyds would be charging 2 months in arrears which they don't do.
    • YorkshireBoy
    • By YorkshireBoy 5th Dec 17, 10:10 PM
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    YorkshireBoy
    No. October's charges are added to the November statement on the first working day of November.
    Originally posted by Anthorn
    I'll have one more go. You say they debited the October billing period charges at the end of the first working day of November.

    Lloyds say (in my quote above) they will work them out at the end of the monthly billing period (which in their speak is the end of the first working day of the month).

    They go on to say they'll "always let you know the amount before they are taken".

    Now ask yourself this....if they were to take them on the second working day of the month (in effect at the end of the first working day), just how much notice are they giving you?...to the nearest milli-second please.
    I believe that people are confused
    You appear to be in a minority of one. If I was in that position I'd be doubting myself.
    Last edited by YorkshireBoy; 05-12-2017 at 10:12 PM.
    • Anthorn
    • By Anthorn 5th Dec 17, 10:21 PM
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    • 841 Thanks
    Anthorn
    I'll have one more go. You say they debited the October billing period charges at the end of the first working day of November.

    Lloyds say (in my quote above) they will work them out at the end of the monthly billing period (which in their speak is the end of the first working day of the month).

    They go on to say they'll "always let you know the amount before they are taken".

    Now ask yourself this....if they were to take them on the second working day of the month (in effect at the end of the first working day), just how much notice are they giving you?...to the nearest milli-second please.You appear to be in a minority of one. If I was in that position I'd be doubting myself.
    Originally posted by YorkshireBoy
    Exactly. They work them out at the end of the billing cycle and add them to the next statement which is then paid during the next month after that. As per the example of my accounts I posted. Therefore October charges added to the November statement which is paid in December. November charges added to the December statement which is paid in January.

    Now I'm just repeating myself!
    • YorkshireBoy
    • By YorkshireBoy 5th Dec 17, 10:27 PM
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    YorkshireBoy
    Exactly. They work them out at the end of the billing cycle and add them to the next statement which is then paid during the next month after that. As per the example of my accounts I posted. Therefore October charges added to the November statement which is paid in December. November charges added to the December statement which is paid in January.

    Now I'm just repeating myself!
    Originally posted by Anthorn
    You're not actually. You said something completely different in post #3 above. EDIT: And also post #6, where you also confused statement period with billing period but we'll let that one go!

    The OP said he'd been charged a lump sum of debit interest and an overdraft usage fee at the start of December. People here said that they were catch up/close off fees for October/November billing period (which closed off at the end of the first working day of November, with the charges being notified on the November statement for collection in early December) under the old T&Cs. You disagreed and said they'd been overcharged.

    I'm out.
    Last edited by YorkshireBoy; 05-12-2017 at 10:31 PM.
    • Dobbibill
    • By Dobbibill 5th Dec 17, 11:30 PM
    • 2,541 Posts
    • 3,631 Thanks
    Dobbibill
    OP - if you look at the bottom of your paper statement or your charges notification in your digital inbox on Internet banking it will tell you the charging period you have been charged and also the date they will be debited.

    If you receive notifications online I would say it landed in your inbox around the 6th or 7th November.

    This will give you some clarity and understanding before you go to the branch on Monday.

    HTH
    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.
    • Westie983
    • By Westie983 7th Dec 17, 1:25 AM
    • 3,855 Posts
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    Westie983
    OP its has been answered LBG OD fees are charged 2 months behind.

    So 1st December was for the OD used in October before the new daily charges were introduced.

    OD used to be calculated 2nd working day of one month to the first of the next month, then they notify you what the fee will be and takes it on the 1st of the next month.

    As others have said this is the last month that shows the cross over and from 1st January you will just pay the daily fees.

    I am going to close this thread as your question has been answered. Whether you want to agree or not, if you think you have a special account that is different to everyone else. It wont change the answer to your question.

    Westie983
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