Nice little scam

benny_g

I've just noticed that LLoyds TSB have just shortened the annual review of my 'Overdraft' review. It was the 31st Oct now it's the 6th Oct. That means they have cut 25 days from the renewal date and as the 'review' costs me £100.00 (usually for a 5 min phone call) LLoyds TSB have in reality increased their profit from me by £6.84 pa, multiply that by 500000 and you get £3.4 million for doing nothing. This is my calculation:- £100.00 divided by 365 =0.2739726 which is a daily cost of the 'review'over a year, multiplied by 25 = £6.849315, multiplied by a conservative estimate of the number of business overdrafts (500000),. Of course if this criteria has been applied to all overdraft users, WOW, a serious amount of funds is collected with no added user value. I'm going to rip into my 'Account Manager' in the morning for an explanation.

chambta

Move to a bank that doesn't charge to 'review' an overdraft.

Azrael_1701

benny_g wrote: »

I've just noticed that LLoyds TSB have just shortened the annual review of my 'Overdraft' review. It was the 31st Oct now it's the 6th Oct. That means they have cut 25 days from the renewal date and as the 'review' costs me £100.00 (usually for a 5 min phone call) LLoyds TSB have in reality increased their profit from me by £6.84 pa, multiply that by 500000 and you get £3.4 million for doing nothing. This is my calculation:- £100.00 divided by 365 =0.2739726 which is a daily cost of the 'review'over a year, multiplied by 25 = £6.849315, multiplied by a conservative estimate of the number of business overdrafts (500000),. Of course if this criteria has been applied to all overdraft users, WOW, a serious amount of funds is collected with no added user value. I'm going to rip into my 'Account Manager' in the morning for an explanation.

Well surely they will be loosing charge/interest revenue for those 25 days. and they dont really need to give you a reason.

jonesMUFCforever

LTSB do not charge for an overdraft review (if it is a personal account).
If you hold a business account then you will have a letter from the bank stating the review date.

Having said all of that an overdraft is repayable on demand so don't rub up the account manager too much!

iereboy

Hmmm...

Explain to me how they profit again if you are a personal customer??!?!

Just to let you know:

*LLoyds do not charge you to make changes to your overdraft.
*You can increase your overdraft on internet banking for free.
*You can call them on 01733 347 007 to avoid the 0845 number.
*Overdrafts are repayable on demand.


Please feel free to rip into your manager knowing this information and please let him know exactly what "losses" you incurred.

benny_g

Sorry, I forgot to state it was a business account, but anyone employed by LLtsb would have noticed that..I hope... I refrained from saying that I have in excess of 3 times the amount available on O/D on deposit and frankly I don't give a toss about 'rubbing up' my account manager the wrong way because I'll just shut down my accounts and go elsewhere, and for the Lloyds TSB employee in particular, I pay your wages, because if it was left to the so called Investment Experts employed by many banks we would all be up SH*T CREEK without a boat let alone a paddle. And no they are not losing interest because they just bill you earlier for the charges.

iereboy

LOL. Don't worry we are all psychic here. We used our abilities to realise it was a business account.

Am sure they'll be besides themselves when they lose your business.

Good luck with your bank manager! :whistle:

jonesMUFCforever

benny_g wrote: »

Sorry, I forgot to state it was a business account, but anyone employed by LLtsb would have noticed that..I hope... I refrained from saying that I have in excess of 3 times the amount available on O/D on deposit and frankly I don't give a toss about 'rubbing up' my account manager the wrong way because I'll just shut down my accounts and go elsewhere, and for the Lloyds TSB employee in particular, I pay your wages, because if it was left to the so called Investment Experts employed by many banks we would all be up SH*T CREEK without a boat let alone a paddle. And no they are not losing interest because they just bill you earlier for the charges.

Who are you referring to ??

Azrael_1701

jonesMUFCforever wrote: »

Who are you referring to ??

Yes, i would also like to know to whom you are referring...