Another bank stealth charge!

Robin.Hope

I recently holidayed in Madeira and, having read Martin's warning regarding charges made by banks when using ATMs abroad, decided to buy enough euros in the UK for the whole holiday. I opted to use the online service offered by the Post Office, as time was quite short and the exchange rate quite good. I ordered the euros, paid using my Visa Debit card and arranged to collect them from my local Post Office next day. On arriving back I received my bank statement only to find an additional cash card fee of £4.50 as well as the cost of the eoros. The Post Office confirmed that they had not taken this fee, so I went to my Lloyds TSB branch and enquired what this charge was. Eventually, after a long 'phone call to some 'higher authority', the customer service assistant informed me that the charge had been made by Lloyds TSB for using my card to purchase currency from anyone other than Llloyds TSB. He stated, and I quote, " We make this charge to encourage our account holders to buy their currency through Lloyds TSB, where no charge is made other than the cost of the euros". :mad:

nzseries1

I hope this charge is in the terms and conditions... if not... I would definitely complain as that has to be illegal!!!

Baldur

nzseries1 wrote: »

I hope this charge is in the terms and conditions...

Of course it is - http://www.lloydstsb.com/rates_and_charges/current_account_charges.asp#cashpoint

When you use your Lloyds TSB debit card to buy foreign currency or traveller’s cheques

From Lloyds TSB branches
Free

From any other banks, travel agents, Bureau de Change and other outlets displaying the Visa sign.
1.5 % of the amount with a minimum transaction charge of £2 and a maximum charge for each transaction of £4.50.

D1zzy

I ran into this getting currency from the PO - so walked over the road to LLoyds and withdrew the cash to pay for it.
Despite Ts & Cs - stiil don't understand why currency is treated differently from other commodities. {except to try and ensure you purchase from them at a crap X rate}

Buy stamps in the PO - no charge
Buy currency in the PO-debit card charge

I suppose at some stage they could introduce a charge for purchasing any commodity - as long as its in the Ts and Cs of course!

Robin.Hope

The whole point of my buying currency online from the Post Office was the exchange rate was much better than when buying direct from the Post Office currency counter. It was therefore impossible to withdraw cash and use that to pay for the transaction.

You are an a no win situation with the bank. You either accept the bank's poor exchange rate or you pay them for allowing you choose where you spend your own money.

Baldur

Robin.Hope wrote: »

The whole point of my buying currency online from the Post Office was the exchange rate was much better than when buying direct from the Post Office currency counter. It was therefore impossible to withdraw cash and use that to pay for the transaction.

You are an a no win situation with the bank. You either accept the bank's poor exchange rate or you pay them for allowing you choose where you spend your own money.

There's a specific warning on the Post Office website about the possibility of card issuers' additional charges - http://www.postoffice.co.uk/portal/po/content1?catId=19300210&mediaId=19600187

Payment You can pay for foreign currency notes and American Express Travellers Cheques in cash (only in branch), or by a credit or debit card issued in the United Kingdom (Visa, Mastercard, Solo, Delta or Maestro only).

If you pay by credit or debit card you may be charged a cash advance or other fee by the card issuer.

I've always used my Nationwide Debit Card, rather than my LTSB one, and made fee-free ATM withdrawals abroad (1% outside Europe from July).

benjus

Robin.Hope wrote: »

I recently holidayed in Madeira and, having read Martin's warning regarding charges made by banks when using ATMs abroad, decided to buy enough euros in the UK for the whole holiday. I opted to use the online service offered by the Post Office, as time was quite short and the exchange rate quite good. I ordered the euros, paid using my Visa Debit card and arranged to collect them from my local Post Office next day. On arriving back I received my bank statement only to find an additional cash card fee of £4.50 as well as the cost of the eoros. The Post Office confirmed that they had not taken this fee, so I went to my Lloyds TSB branch and enquired what this charge was. Eventually, after a long 'phone call to some 'higher authority', the customer service assistant informed me that the charge had been made by Lloyds TSB for using my card to purchase currency from anyone other than Llloyds TSB. He stated, and I quote, " We make this charge to encourage our account holders to buy their currency through Lloyds TSB, where no charge is made other than the cost of the euros". :mad:

Just curious - did you use the Travel Money Maximiser on this site to find the best rate? There is a link on that page which warns of this charge - although unfortunately a lot of people seem to miss it. I wonder if we should ask them to make it more obvious - or revamp the TMM to ask you how you intend to pay for the currency and show the charge.

Personally I agree that this charge is unfair - however, most banks that issue Visa debit cards do make this charge - Nationwide and Halifax being major exceptions.

Robin.Hope

Benjus

Yes I missed the warning on the TMM page. I was aware of the charges made for using a debit card abroad, but was not aware of the charge in the UK for currency purchases. I guess you just have to go through the T & Ts carefully to find out about these charges, but how many of us do this.

nzseries1

Well, this is the first I've heard about this sort of charge, so thanks Robin.Hope for posting this. I have to say I'm disgusted and this sort of thing would stop me ever banking with Lloyds TSB.

Possibly an over-reaction, but there's too much choice out there these days to have to put up with this sort of rubbish.

NBE

nzseries1 wrote: »

this sort of thing would stop me ever banking with Lloyds TSB.

Most banks and credit card companies charge a fee such as this, HSBC and Barclaycard do for sure. A credit card company also refers to it as a cash advance so you get charged a higher rate of interest as well. Unfortunaly cash is the only surefire way to avoid a charge.

rb10

NBE wrote: »

Unfortunaly cash is the only surefire way to avoid a charge.

Or a debit card from one of the banks that do not charge.