is this new tactic to avoid reclaimed charges

ninky_2

my OH has a loan that was renegotiated with lloyds tsb. recently he has received a letter stated that a charge will no longer be made for issuing notice of missed payment but will be charged for being transferred to another department of the bank instead. the charge remains the same (think it's £30).

is this the bank trying to wriggle out of any possible claiming back of unfair charges in future?

tbh he hasn't missed any payments since the loan was renegotiated some years ago so this is more of an academic question.

Rafter

ninky,

Banks are allowed to charge whatever they like for 'services' but cannot charge penalties - only the government can do that!

So yes, it does sound as if by charging you to transfer to another department they are getting around the treatment of the charge as any sort of penalty fee.

R.