MSE News: Lloyds TSB in bank charges shake-up

davidgmmafan

Strikes me as yet more of the MP's attitude... we don't accept any wrongdoing but we've decided to radically overhaul the system anyway...

Lets be honest the facts cannot be disputed, customers argued the banks were charging waymore than it cost them, and they were correct. Just the OFT stumbled on finding a law to say this was unfair.

Lying is rewarded, no wonder we're in the state we're in.

student89

sorry if this has already been asked but will this affect the 0% planned overdraft on a student account?

Rupert_Bear

For keeping within the terms and conditions of my account and never exceeding my overdraft limit Lloyds have decided to punish me with a £5.00 charge if I go overdrawn plus usual interest charges. Nice one Lloyds!

davidgmmafan

To be honest Rupert I think measures are long overdue to encourage people to use thier overdraft correctly, by which I mean a temporary form of borrowing. However the banks need to be very careful how they do this as the Halifax example shows the is very easy to bungle, resulting in it taking LONGER for customers to clear thier debts.

Trouble is I doubt thier integrity, I cannot believe they're doing it for the benefit for thier customers when they've looked the other way and delighted in the money raised from fees for so long.

Alpine_Star

Rupert_Bear wrote: »

For keeping within the terms and conditions of my account and never exceeding my overdraft limit Lloyds have decided to punish me with a £5.00 charge if I go overdrawn plus usual interest charges. Nice one Lloyds!

There is no justification for the new £5 charge and just goes to illustrate the dire lack of competition in the PCA market. Like all banks Lloyds confuses the free market for a free-for-all.

Lloyds recently said that it ''competes aggressively on all matters of products and pricing'' but that is clearly not happening in your case.

stator

davidgmmafan wrote: »

Trouble is I doubt thier integrity, I cannot believe they're doing it for the benefit for thier customers when they've looked the other way and delighted in the money raised from fees for so long.

I don't think anyone really thinks they are doing it for their customers. They are obviously just doing it because of all the pressure about "excessive charges" with regards to unarranged overdrafts. They have to bring those charges down to avoid the possibility of them all being reclaimed in the future and to avoid new regulation being introduced that would force them to reduce them to a certain level.

quartile

I have banked with Lloyds for 15 years. However this will probably make me leave them. At the moment I pay around 50p a month in approved overdraft interest. I have no wish for this to increase tenfold to £5.

micsan84

I have been with Lloyds for over 20 years. I recently received a statement with the £5 charge plus interest. I called them up as I was not aware of this new change to their terms and conditions, and did not believe they had communicated this to me effectively. I spoke to a manager to request that the fee be waived on this occasion and I will cover the overdraft and remove the facility from the account, but he was unwilling to. In the end the manager was not bothered about losing a valid customer of 20 years for the sake of five pounds.
I am in the process of changing banks now to HSBC and will also receive £75 from HSBC as part of the move.

jambosans

micsan84 wrote: »

I called them up as I was not aware of this new change to their terms and conditions, and did not believe they had communicated this to me effectively.

What do you propose, they inform you via a Howler?

Does a seven month old thread (and related news article) not indicate that perhaps you simply weren't paying attention to the mailing? It was also plastered over their website last year.