Lloyds TSB Now Charging for Planned Overdrafts

alemac

This is banks trying to get you over your overdraft and then charge you tons in overlimit fees...believe me it has happened to me through the BOS!! My partner had has an arranged overdraft and BOS wrote to say they were going to charge £1 per day for the facility when it was used and that it would be charge at the end of each day.

At the end of the month she was charge and it took her over her limit by a few pounds. She did not realise that she was then going to be charge £5 per day for them charging her for the faciltiy and was stung for £150 on a £136 overdraft in one month. We paid the amount of in full but we were not made aware this was all in arrears and the some £300 that was paid off was for no advantage as BOS then stucj another load of charges on!!!

She is contacting them as we believe the have charged us in the region of 300-400% on what we owed..sound like robbery??

YorkshireBoy

alemac wrote: »

sound like robbery??

Sounds to me like she didn't read (or read but didn't understand) the correspondence from BoS.

If she knew about the £1 fee she also knew about the £5 fee (it was communicated at the same time). She also knew the date the £1 fees were to be debited, and should have realised that this would tip her over into unauthorised overdraft territory if sufficient funds were not available in the account on that date.

alemac

Also they never actually informed us of the exact total or when they would charge!

alemac

YorkshireBoy wrote: »

Sounds to me like she didn't read (or read but didn't understand) the correspondence from BoS.

If she knew about the £1 fee she also knew about the £5 fee (it was communicated at the same time). She also knew the date the £1 fees were to be debited, and should have realised that this would tip her over into unauthorised overdraft territory if sufficient funds were not available in the account on that date.

As I just poted they did not actually tell us in any form what was being charged, they expressed that the charge would be added each day not at the end of the month and never in arrears...just to also point - the part that you did not comment on - they are charging people 300-400% on small overdrafts. This is a practise that appauls most people as they are practise generally by cowboys!

YorkshireBoy

alemac wrote: »

Also they never actually informed us of the exact total or when they would charge!

Here's what they say on their 'info' page...

If you have an arranged or unarranged overdraft, your statements will show the amount of fees we will take from your account at the end of the month.

http://www.halifax.co.uk/bankaccounts/rates-rewards-fees/

I believe it's also detailed in her account T&Cs, but I don't have a copy to hand.

Are you saying that her statement didn't clearly state what would be charged and when? If so, I'd be very surprised!

davidgmmafan

For me just goes to show that all this twaddle about the end of free banking deployed by the banks in the media leading up to and during the test case was a total red herring. This is something they wanted to do anyway, as one posted said the rates on these 'simplified' charges are sometimes several hundred per cent. It is most bizarre that they now don't differentiate between authorized and unauthorized overdrafts. But again if you believe thier (changed leading up the test case) view of charges the fees were NEVER a punishment and purely for services provided. Pull the other one its got bells on.

alemac

YorkshireBoy wrote: »

Here's what they say on their 'info' page...I believe it's also detailed in her account T&Cs, but I don't have a copy to hand.

Are you saying that her statement didn't clearly state what would be charged and when? If so, I'd be very surprised!

Im sorry but the letter is what normal joe public understands and this should be clear given that it is outlining what you are going to have to put up with now. I say put up with as BOS were kind enough to do this just after Christmas knowing that not many people would be able to clear there feet. The letter clearly states that the charge would be applied daily. If the small print is different then that is just wrong. 2nd point on having to put up with is that you as the comsumer have no option when you are in a situation like this one they have made an orignal agreement of giving you the overdraft that is periodically reviewed then when they think they want more of your money they move the goalposts.

And.....yes i agree that this is the way that the banks have started to charge money for a banking system that was and still in someway is failing. We do not have a choice...back to banking under the matress?!??

Fiddlestick

alemac wrote: »

Im sorry but the letter is what normal joe public understands and this should be clear given that it is outlining what you are going to have to put up with now.

It IS clear.

The letter clearly states that the charge would be applied daily.

Are you SURE that it says the charge would be APPLIED daily?

Are you SURE that it didn't say that the charge would be INCURRED daily and then applied to the account at a later date?

2nd point on having to put up with is that you as the comsumer have no option when you are in a situation like this one they have made an orignal agreement of giving you the overdraft that is periodically reviewed then when they think they want more of your money they move the goalposts.

You have the option of paying the money back and thus not incurring the bank's charges.

Alternatively, you as a consumer have the free choice of taking your business elsewhere to a lender that has a different charging structure.

Hanky_Panky

davidgmmafan wrote: »

For me just goes to show that all this twaddle about the end of free banking deployed by the banks in the media leading up to and during the test case was a total red herring. This is something they wanted to do anyway, as one posted said the rates on these 'simplified' charges are sometimes several hundred per cent. It is most bizarre that they now don't differentiate between authorized and unauthorized overdrafts. But again if you believe thier (changed leading up the test case) view of charges the fees were NEVER a punishment and purely for services provided. Pull the other one its got bells on.

There were a number of people on this site when the bank charge reclaim thing first kicked off who stated very clearly that it was going to have a very negative effect on a lot more people - and it has !

Sad to say but I really don't think this would have happened if it hadn't been for the campaigning on this and other sites.

mintondust

firewalker82 wrote: »

Wow, I recieved the letter today also and I am absolutely disgusted with this decision. I have, like many, been with Lloyds for a long time and have always appreciated there sensible and down to earth approach to banking. This latest announcement frustrates me for several reasons;

• we have two accounts with lloyds, both with MANAGED overdrafts, never unplanned!
• We also sign up to the gold account scheme with free AA recovery, phone insurance, travel insurance and overdraft facilities at £10 per account.

So in addition to paying for these extra bolt ons, we now have to pay for overdraft fee of £5 + interest (approx 19.8%APR). That would be an additional £10+!!

It seems to me that they are trying to look as though they are doing something to help people who neglect their accounts and use unplanned overdrafts and punishing the people who dont. Therefore moving money that they have lost from unplanned overdrafts and making it up from planned overdrafts! If they really wanted to make a difference, then why not just bring the costs down for the unplanned o/draft fees and not planned o/drafts??

I have a young family (2 children) and while we try to stay out of the o/draft it does not always happen that way. especially in the current climate, we only spend wisely and while we could try to move our selves out of the o/draft, we dont feel that we should have to as we qualify for the gold account (£10).

If Lloyds are trying to lose customers, then this is definately the right way to do it. I know that it is a hassle moving current accounts to a new bank, but I feel that what they have done is inexcusable.

THANKS LLOYDS, I WILL BE TAKING MY ACCOUNT ELSEWHERE!!!:mad::mad:

:mad: I too have banked with Lloyds for a long time, 13 years, and also hold a gold account, i feel it is bang out of order for them to charge an additional £5 to the £10 you pay for having a preferential account. I use my overdraft and currently pay around £1.20 in interest for using it. I have never gone over my limit, bounced any payments or defaulted on anything, and it seems as though i am being punished for using my account and its facilities properly!

when i called today, after receiving my letter only this morning, I was advised that they were placing a £10 buffer so i would not be charged for the first £110 i go overdrawn! however, if i was to upgrade tot he platinum account i would not pay the £5 on the first £260 i was overdrawn! when i informed them i would not benefit from the platinum and that was why i chose the gold account, she persisted in informing me of this £260 that would not be chargeable! trying to sell me a product i would not need for even more money a month!

I too am aware that an overdraft is for short term borrowing, and being an ex first direct employee i am well aware of the described usage of this type of facility. however, the fact remains that many people often get paid come just out of their overdraft and then payments (which many students do not make) such as mortgages, and high council tax charges etc take them back into them. of course we all, if we did not have these payments, would be able to come out of our overdraft in 2 months time but the fact is it is not that simple. I myself, am in my overdraft due to an unexpected gas bill (thanks to n-power and their inability to take my meter readings) when moving home.


I also shall be moving everything I have with them elsewhere :wave: