Lloyds have charged £78.34 for being £1.80 overdrawn for 1 month

lizzielondon

Hi I hope i've posted in the correct place

My OH has received a letter tonight telling him he has been charged £78.34 ( fees of £75 plus interest ) because he was overdrawn by £1.80 above his agreed limit for the past month

This seems bonkers!

Just wanted to quickly ask if this is the norm? And if there's anything we can do to reduce the amount. He knows he shouldn't have gone over the agreed limit but hadn't realised he had

Can anyone help? thanks!

Premier_2

Yes it is the norm that the bank's computer will automatically add charges for unauthorised overdrafts when such an event occurs.

Not sure about the level of charge he has incurred, which seems a little high compared to most.

He should contact his bank. If this is the first instance and the account is usually in good order, the bank will often agree to waive the charge (but they are not obliged to)

natweststaffmember

how many days was he overdrawn because that amount seems a bit odd if it was for the whole of the month?
http://www.lloydstsb.com/rates_and_charges/current_account_charges.asp#overdraftcharges

I can see £15 a month but was it 10 days overdrawn?

lizzielondon

daily fees of £60 (10x£6) suppose that's the limit?

plus a monthly fee of £15

plus 3.34 interest

just seems so disproportionate? i thought it had to reflect their costs?

natweststaffmember

lizzielondon wrote: »

daily fees of £60 (10x£6) suppose that's the limit?

plus a monthly fee of £15

plus 3.34 interest

just seems so disproportionate? i thought it had to reflect their costs?

No unfortunately it doesn't. As Premier has stated in post 2 it might be worth calling the bank if this is the first occasion and see if they are willing to refund the charges as a gesture of goodwill due to previous banking history.

clj_2

nope doesnt have to reflect anything! if you havent had a waiver before, theyll more than likely do it waive the charge

lizzielondon

ok, cheers everyone will try it

GBMatt

I also have just had the same thing for being £0.80 overdrawn, I've written to them politely and if they don't respond positively I plan to write back informing them I'll close my account, I only recently opened this account and it's a bad first impression of the bank. Please let me know how you get on with them.

Matt.

milldred

If it helps in the Future, Check Your Account Regularly and if you do notice your account is overdrawn if you pay in funds to cover the amount by 3.30pm on a Weekday. You don't Get charged So far this has worked for me

I Bank with Natwest, But Lloyds advertise this feature on their Website, Called a Grace Period.

dunstonh

just seems so disproportionate?

This new style of charging (per day over limit) was designed to be more compliant with requirements. Ironically, it has meant that many people are actually worse off this way rather than the old way (typically those that overdraw by a small amount rather than a large amount).

i thought it had to reflect their costs?

Nope.

Like others posted above, if its your first time over, the bank will normally refund.