Bank Charges - Charges when "in credit"

TheRedAdmiral

I have an interesting situation with Lloyds TSB.

For many years I have held 2 accounts. One I use for business purposes (Property) and the other I have used as for normal day to day use.

On my current account, for the period of the last 6 years, I have accrued Bank Charges in the region of £4000. However, during the same time, my other account has had in it a sum of money between £10,000 - £40,000.

My argument is that rather than making a charge for an account to go overdrawn the correct thing to do would have been for Lloyds TSB to transfer money from one account to the other and make the necessary payment thus avoiding a charge.

since January of this year I have not used my Lloyds TSB account. In January my balance was perhaps £200 overdrawn. Now it is £1000 Overdrawn. This is clearly a "Charge on Charge" situation.

Whilst I note the recent outcome of the "Test Case" I wonder whether anyone shares my view that a "Charge on Charge" situation is totally differenent - especially when the bank, in the first instance, could have simply transferred funds (which, I believe, their own literature allows them to do)

McKneff

Didnt want to read and run, (i have to go out) but my first thought is that banjs wont do anything with your accounts unless you instruct them to do.
(apart from take charges out of course) I really dont think you can blame the bank in these cirmstances. It would take thousands of man hours for the banks to police this and then charges would double because they would need that many more staff.

No, i think if its our bank account then we should be responsible for the maintenance of them.

natweststaffmember

I think the OFT are certainly concerned by the charges on charges scenario which you have mentioned in post 1. In fact, that is something that they mentioned in the HoL appeal and I think that could create an issue with UTCCR 1999. The overdraft service is triggered by the item being bounced but it then subsequently then increases the cost for some customers but not for all customers because of the secondary charge that may occur.

jambosans

Lloyds TSB will only charge upon a charge if the account is left overdrawn into the following statement month. It is completely avoidable if you credit funds within the same month the charge debits.

Also just to echo what McKneff has said. It is not Lloyds TSB's responsibility to manage your finances. Regardless of credit funds in another account, acting without your express permission to remove funds from one account could cause all sorts of problems. Even if there is an available credit balance, for all Lloyds TSB know, those funds have been allocated through bill payments, Direct Debits, etc.

You are in a fortunate position where you have the money to avoid charges. The greater issue seems to be poor control over your finances. This may seem presumptuous but I base this on purely what you have explained:

1. You want Lloyds TSB to move money between your accounts to cover payments you have made.
2. You have £10k to £40k in one account, yet continually get charged on your other account.
3. You accuse Lloyds TSB of levying charges upon charges, as I have explained, this scenario will only occur (normally) when the account is left overdrawn for prolonged periods of time.

All these issues can be resolved by you, and I think your are incorrectly trying to direct blame at Lloyds TSB.

Alpine_Star

jambosans wrote: »

Regardless of credit funds in another account, acting without your express permission to remove funds from one account could cause all sorts of problems. .

When a bank sets off a debt from one account to another, does that require your express permission?

jambosans

Alpine_Star wrote: »

When a bank sets off a debt from one account to another, does that require your express permission?

A valid point, but a bit of a red herring in regards to this particular scenario.

Not that I want to get into to a debate about the right of set-off (as generally speaking, I disagree with it), but you could argue that "permission" is given through the contractual agreement made between the customer and bank when the account is opened. Also, I'm sure the right of set-off would be applied after the account had been in arrears for a considerable period of time. So eventually LTSB probably would offset funds, but in most cases this is not done immediately and requires a general lack of pro-activeness (on the customer's part) towards arrears before being used.

martybassman

The Red Admiral

Just a suggestion, why not register for the £2.50 a month text alerts? If you ever go overdrawn, a text is sent to your mobile the same morning before 10 AM, so you can then transfer the money via internet banking or telephone banking from the other account to put the account back in credit, As long as this is done before 3:30PM (same day) then no charges are accrued and all direct debits will be paid, and everything is hunky dory!

I used to get charges month on month, but as soon as I got these texts I've not had one charge! Go me!

Sure it may be £2.50 a month, but a darn sight better than paying £40 or £50 charges, and helped me take control of my bank account, which I realise I should have done years ago!

Good luck!