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  • FIRST POST
    • brookero1981
    • By brookero1981 1st Feb 18, 4:09 PM
    • 8Posts
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    brookero1981
    Recent bank overdraft fees increase
    • #1
    • 1st Feb 18, 4:09 PM
    Recent bank overdraft fees increase 1st Feb 18 at 4:09 PM
    Hi all, appreciate this has been brought up a few times already but wondered if anyone had had any success from banks (in my case Lloyds) re the recent overdraft fees change.

    My main grievance is that 2 months notice, leading into the most expensive time of the year (Christmas) was not fair notice to pay off the debt. I gave it a go but back to where I started and more. I am now being hit with £120-£150 a month charges, up from £30ish and my debt relief plan is in disarray.

    I have written to the bank asking for a refund of the last couple of months and two months to pay off my overdraft at the same rate of interest as before the change (a realistic target for me) but was fobbed off with a : "Having reviewed your complaint, and based on the information available to me, I'm unable to agree that any bank error occurred". I'm not calling it a bank error, just a very unfair way to treat it's customers. Having roughly £4.50 come out of my bank account every single day is so very demoralising.

    I'm loathed to take out any additional finance from them (Lloyds), they really stung me at my lowest point a few years ago and pressured a younger, more naïve me into taking a loan at 24.9% which ultimately made things worse for me.

    Anyway, thanks for listening!
Page 1
    • spadoosh
    • By spadoosh 1st Feb 18, 4:27 PM
    • 4,940 Posts
    • 6,584 Thanks
    spadoosh
    • #2
    • 1st Feb 18, 4:27 PM
    • #2
    • 1st Feb 18, 4:27 PM
    The changes where announced sometime around September if not, earlier.

    The terms and conditions you signed up to allow them to make change swith notice. Youre allowed to leave without penalty (providing you repay them obviously).

    Theres been a few cases of people negotiating more favorable rates for a few months, up to a year i think. However it doesnt look like its been offered to all customers. You can keep trying but it doesnt look like youll have much success.

    Its designed to penalise those who are permanently in there overdraft. If it was used as an overdraft is intended the changes would probably cost you less. It seems the companies want to reduce short term liabilities.

    Id recommend switching banks. Firstly theres usually bonus offers which can reduce the overdraft amount and secondly not everyone charges the same rates. I think youre right with not wanting to do a loan or similar.

    Have a good look through the MSE bank pages and see if theres anything that could work for you.

    As a side if you havent already post up a SOA (statement of affairs, basically a list of money in and out) and the good people here will be more than happy to rip apart youre spending to try and help you save (theyre not that mean, but will encourage you to focus on priority spending). Even if you think you know what youre doing, theres a good chance someone on here will know more.
    Don't be angry!
    • brookero1981
    • By brookero1981 1st Feb 18, 5:30 PM
    • 8 Posts
    • 0 Thanks
    brookero1981
    • #3
    • 1st Feb 18, 5:30 PM
    • #3
    • 1st Feb 18, 5:30 PM
    Thanks, yeah, letter was end of August, early September with the first charge coming out on November 2nd. I guess they have me between a rock and a hard place as I cant pay it off just now and it's too big to pass on to a new bank, and increases with each daily charge. I actually had to increase it 4 times last month to cover the charges. I'll work hard to pay off and leave as soon as I can.

    Will have a look at the bank pages, and take a look at the SOA - that actually sounds like fun!


    The changes where announced sometime around September if not, earlier.

    The terms and conditions you signed up to allow them to make change swith notice. Youre allowed to leave without penalty (providing you repay them obviously).

    Theres been a few cases of people negotiating more favorable rates for a few months, up to a year i think. However it doesnt look like its been offered to all customers. You can keep trying but it doesnt look like youll have much success.

    Its designed to penalise those who are permanently in there overdraft. If it was used as an overdraft is intended the changes would probably cost you less. It seems the companies want to reduce short term liabilities.

    Id recommend switching banks. Firstly theres usually bonus offers which can reduce the overdraft amount and secondly not everyone charges the same rates. I think youre right with not wanting to do a loan or similar.

    Have a good look through the MSE bank pages and see if theres anything that could work for you.

    As a side if you havent already post up a SOA (statement of affairs, basically a list of money in and out) and the good people here will be more than happy to rip apart youre spending to try and help you save (theyre not that mean, but will encourage you to focus on priority spending). Even if you think you know what youre doing, theres a good chance someone on here will know more.
    Originally posted by spadoosh
    • Westie983
    • By Westie983 2nd Feb 18, 1:22 AM
    • 4,128 Posts
    • 14,640 Thanks
    Westie983
    • #4
    • 2nd Feb 18, 1:22 AM
    • #4
    • 2nd Feb 18, 1:22 AM
    Based on what you are saying your overdraft as around £3,000. I agree that the charge is making this figure increase. The only suggestion I can think off is to pay off what you can to reduce the overdraft to under the £2000.00 mark then you will lose around £2 a day on the fees, which will help you a little.

    Sadly is people who have lived in their overdrafts which has caused the banks to recall the money in overdrafts by changing the structure.

    I wish you luck in reducing it, and you may find you are able to switch accounts if your OD isnt as high.

    As other have said post a SOA so we can try and help to see where we can save money and help, or sell some household items to recoup and reduce some of the overdraft amount.

    Westie983
    Save 12k in 2018 #10 Total (£25,000)+£5,000/£12,000 = 41.66%
    Sealed Pot Challenge ~ 11 #97 Total (£410) + £0/£800 = 0.00% ( x 11)
    Xmas 2018 £1 a Day #2 Total £22.59/£365 = 6.18%
    Virtual Sealed Pot #1 Total £300/£1,000 = 30.00%
    £2 Savers Club 2018 #16 Total (£1,500)+-490/£2,000 = 50.50%

    Total £5,322.59/£16,165 = 32.92%

    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
    • Hoogle
    • By Hoogle 2nd Feb 18, 1:33 AM
    • 166 Posts
    • 153 Thanks
    Hoogle
    • #5
    • 2nd Feb 18, 1:33 AM
    • #5
    • 2nd Feb 18, 1:33 AM
    if your on a debt relief plan I am assuming you dont have the greatest credit history surely it would make sense to switch bank accounts with no overdraft and write to the bank and ask them to freeze it and enter a repayment plan the £100 a month + your paying in charges would decrease the debt. Surely that has to be your better option rather than not clearing the fee cost each month and the debt increasing ?

    Or if your credit is good standing cant you get a 0% cash transfer card and then pay that back at 0% for say 2-3 years offer ?

    I can not see how banks are getting away with this when they lost with the big unfair charges case years ago. But these charges I believe should be upto x amount per month or 1st 10 days are not charged of each month to give you chance to at least.
    • TheBanker
    • By TheBanker 2nd Feb 18, 6:01 AM
    • 571 Posts
    • 1,493 Thanks
    TheBanker
    • #6
    • 2nd Feb 18, 6:01 AM
    • #6
    • 2nd Feb 18, 6:01 AM
    I have written to the bank asking for a refund of the last couple of months and two months to pay off my overdraft at the same rate of interest as before the change (a realistic target for me) but was fobbed off with a : "Having reviewed your complaint, and based on the information available to me, I'm unable to agree that any bank error occurred". I'm not calling it a bank error, just a very unfair way to treat it's customers. Having roughly £4.50 come out of my bank account every single day is so very demoralising.
    Originally posted by brookero1981
    Hi,

    I do sympathise, but it won't be considered unfair. The old regulations required 30 days notice. The new regulations require "reasonable notice". 60 days is the industry standard.

    I can see why you think it's unfair though and wish you well in paying the balance off.
    Make £10 a day challenge: Jan-18: £330 / £400
    • PeacefulWaters
    • By PeacefulWaters 2nd Feb 18, 6:03 AM
    • 7,732 Posts
    • 9,691 Thanks
    PeacefulWaters
    • #7
    • 2nd Feb 18, 6:03 AM
    • #7
    • 2nd Feb 18, 6:03 AM
    Hi,

    I do sympathise, but it won't be considered unfair. The old regulations required 30 days notice. The new regulations require "reasonable notice". 60 days is the industry standard.

    I can see why you think it's unfair though and wish you well in paying the balance off.
    Originally posted by TheBanker
    Two months is the notice specified in law. Sometimes 62 days notice is required!
    • Dobbibill
    • By Dobbibill 2nd Feb 18, 7:57 AM
    • 2,725 Posts
    • 3,794 Thanks
    Dobbibill
    • #8
    • 2nd Feb 18, 7:57 AM
    • #8
    • 2nd Feb 18, 7:57 AM
    Welcome to the forum brookero,

    The SOA is an excellent starting point to review your finances.
    Maybe you can consider moving your bills to the end of the month so the funds are in the account longer, meaning less use of the overdraft.

    Feel free to post the SOA here or the DFW board.
    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.
    • brookero1981
    • By brookero1981 2nd Feb 18, 11:22 AM
    • 8 Posts
    • 0 Thanks
    brookero1981
    • #9
    • 2nd Feb 18, 11:22 AM
    • #9
    • 2nd Feb 18, 11:22 AM
    Thanks, useful tip, i should be able to divert funds and get it below £2000 in the next 10 days.

    Based on what you are saying your overdraft as around £3,000. I agree that the charge is making this figure increase. The only suggestion I can think off is to pay off what you can to reduce the overdraft to under the £2000.00 mark then you will lose around £2 a day on the fees, which will help you a little.

    Sadly is people who have lived in their overdrafts which has caused the banks to recall the money in overdrafts by changing the structure.

    I wish you luck in reducing it, and you may find you are able to switch accounts if your OD isnt as high.

    As other have said post a SOA so we can try and help to see where we can save money and help, or sell some household items to recoup and reduce some of the overdraft amount.

    Westie983
    Originally posted by Westie983
    • brookero1981
    • By brookero1981 2nd Feb 18, 11:38 AM
    • 8 Posts
    • 0 Thanks
    brookero1981
    Sorry, the debt relief plan is my own, I have about £11k on no fee/no interest cards (Virgin. Sainsburys and Bank of Scotland) and another £3k on a Tesco no interest card that i'm trying to pay off. My credit rating was awful about 7 years ago but is actually really good now, 999/999 according to Experian - (this is one of my greatest achievements in life!) and is obviously a big advantage in trying to sort all this out!

    I asked them to reduce the fee to what it was before (not even a freeze) so I can pay it off and they said no. Perhaps my good credit rating counts against me as they think I should be able to sort it without their help?
    What i'm thinking is, open an HSBC account and see what interest free overdraft they will give me with my good credit rating, whilst also paying off as much of the Lloyds one as I can. Anything leftover then Ill do what you say re the credit card transfer.

    I'll forward my complaint to the ombudsman, only so that they have another record of a complaint against this increase and maybe in the future they'll implement something like what you suggested at the end of your post.

    if your on a debt relief plan I am assuming you don't have the greatest credit history surely it would make sense to switch bank accounts with no overdraft and write to the bank and ask them to freeze it and enter a repayment plan the £100 a month + your paying in charges would decrease the debt. Surely that has to be your better option rather than not clearing the fee cost each month and the debt increasing ?

    Or if your credit is good standing cant you get a 0% cash transfer card and then pay that back at 0% for say 2-3 years offer ?

    I can not see how banks are getting away with this when they lost with the big unfair charges case years ago. But these charges I believe should be upto x amount per month or 1st 10 days are not charged of each month to give you chance to at least.
    Originally posted by Hoogle
    • brookero1981
    • By brookero1981 2nd Feb 18, 12:10 PM
    • 8 Posts
    • 0 Thanks
    brookero1981
    Ahh, good idea re the bills! Will work on my SOA too

    [QUOTE=Dobbibill;73818477]Welcome to the forum brookero,

    The SOA is an excellent starting point to review your finances.
    Maybe you can consider moving your bills to the end of the month so the funds are in the account longer, meaning less use of the overdraft.

    Feel free to post the SOA here or the DFW board
    • enthusiasticsaver
    • By enthusiasticsaver 2nd Feb 18, 12:30 PM
    • 5,702 Posts
    • 11,268 Thanks
    enthusiasticsaver
    I second the suggestion to post an soa on the DFW forum to get ideas and suggestions. The Halifax and lloyds change in overdraft fees have affected lots of people. Ideally you want to reduce the debt you have if it is around £17k. Can you get a 0% money transfer card to pay off the overdraft?
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • eskbanker
    • By eskbanker 2nd Feb 18, 1:21 PM
    • 6,274 Posts
    • 6,347 Thanks
    eskbanker
    My credit rating was awful about 7 years ago but is actually really good now, 999/999 according to Experian - (this is one of my greatest achievements in life!) and is obviously a big advantage in trying to sort all this out!
    Originally posted by brookero1981
    To me this just emphasises the oft-repeated point on here about how meaningless credit scores are - someone with an allegedly perfect score is actually in a situation where they have substantial debt and significant difficulty in repaying it ("my debt relief plan is in disarray" and seeking concessions from Lloyds)!

    Sorry if that seems harsh, and I'm not criticising you, but to me this is a textbook example of the false sense of security that people get from the arbitrary numbers invented and sold (or at least promoted) by credit rating agencies as they only portray part of the overall picture of someone's financial status....
    • brookero1981
    • By brookero1981 2nd Feb 18, 1:44 PM
    • 8 Posts
    • 0 Thanks
    brookero1981
    Ha, way to burst my balloon! No, I agree somewhat, although in my case i'm assuming my decent credit score is why I pay 0% on my credit card debt as opposed to 24.9% on my loan 7 years ago.

    To me this just emphasises the oft-repeated point on here about how meaningless credit scores are - someone with an allegedly perfect score is actually in a situation where they have substantial debt and significant difficulty in repaying it ("my debt relief plan is in disarray" and seeking concessions from Lloyds)!

    Sorry if that seems harsh, and I'm not criticising you, but to me this is a textbook example of the false sense of security that people get from the arbitrary numbers invented and sold (or at least promoted) by credit rating agencies as they only portray part of the overall picture of someone's financial status....
    Originally posted by eskbanker
    • msallen
    • By msallen 2nd Feb 18, 3:04 PM
    • 708 Posts
    • 700 Thanks
    msallen
    No. Your credit history is why you got a 0% deal on a credit card. Your credit score isn't worth the pixels it uses on your screen.
    • brookero1981
    • By brookero1981 2nd Feb 18, 4:31 PM
    • 8 Posts
    • 0 Thanks
    brookero1981
    ha! Oh well, it served as a motivator and felt like a reward so if nothing else I got that from it!

    No. Your credit history is why you got a 0% deal on a credit card. Your credit score isn't worth the pixels it uses on your screen.
    Originally posted by msallen
    • Thrugelmir
    • By Thrugelmir 2nd Feb 18, 10:30 PM
    • 57,471 Posts
    • 50,763 Thanks
    Thrugelmir
    although in my case i'm assuming my decent credit score is why I pay 0% on my credit card debt as opposed to 24.9% on my loan 7 years ago.
    Originally posted by brookero1981
    The world is changing again. 0% deals are now under scrutiny. With maximum periods being reduced and higher up front fees. Amongst broader measures.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • wizzywig27
    • By wizzywig27 3rd Feb 18, 3:47 PM
    • 1,011 Posts
    • 702 Thanks
    wizzywig27
    I complained to ombudsman who agrees with Halifax decision. I asked it to go to the next stage (I believe is the actual adjudicator) and have been waiting two months. Pointless now as I!!!8217;ve cleared my 2k overdraft and are overdraft free
    • brookero1981
    • By brookero1981 6th Feb 18, 12:18 PM
    • 8 Posts
    • 0 Thanks
    brookero1981
    Good work on clearing the overdraft! Im going to forward mine to the ombudsman too, if only in the hope they get enough of them so that they look into it. Maybe in the future this will be the next £30+ bank charges, PPI etc refund spree.

    I complained to ombudsman who agrees with Halifax decision. I asked it to go to the next stage (I believe is the actual adjudicator) and have been waiting two months. Pointless now as I!!!8217;ve cleared my 2k overdraft and are overdraft free
    Originally posted by wizzywig27
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