Lloyds TSB Now Charging for Planned Overdrafts

sprinter11

mintondust wrote: »

: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:

I am in a very similar possition to you after 20 odd years of banking with LTSB,and will be looking to take out a loan to pay off my overdraft,then it will be 2 fingers up to LTSB for profiteering in an underhand manner yet again.

musical_norwich

sprinter11 wrote: »

I am in a very similar possition to you after 20 odd years of banking with LTSB,and will be looking to take out a loan to pay off my overdraft,then it will be 2 fingers up to LTSB for profiteering in an underhand manner yet again.

I felt exactly the same way as you. What annoyed me most is that Lloyds is penalising the responsible customers to cut charges to the irresponsible. You might find this thread useful, it is the alternatives I found to the 'value' accounts for travel and breakdown insurance, etc.

loveandlight

Just bumping this thread up to remind and alert people that LloydsTSB will start collecting their £5.00 monthly overdraft usage fee on Tuesday 4th January 2011 so make sure it doesn't tip you over your limit if you are already maxed out to your overdraft limit. They will be taking the £5.00 out at the beginning of every month. It doesn't apply to those who don't use their overdraft. I just called them about debits going out of my account for Tuesday and this is what they told me.

mirrorimage0

thankyou, was hoping to be sorted by now but looks like im one of those going to be charged for using my planned overdraft for a while. sooo annoying

Rupert_Bear

loveandlight wrote: »

Just bumping this thread up to remind and alert people that LloydsTSB will start collecting their £5.00 monthly overdraft usage fee on Tuesday 4th January 2011 so make sure it doesn't tip you over your limit if you are already maxed out to your overdraft limit. They will be taking the £5.00 out at nebeginning of every month. It doesn't apply to those who don't use their overdraft. I just called them about debits going out of my account for Tuesday and this is what they told me.

On one of my accounts I am slightly overdrawn by a few pounds only. If I transfer money to the account say tomorrow would I escape the £5.00 fee.

I hasten to add it is a planned overdraft facility.

Also found the following article on their website. I was interested to note that if go overdrawn and paying monies into your account by 3.30pm the same day you will not be charged the new fees.





Managing your overdrafts

Advice and Guidance



Keeping a budget

Managing the day-to-day




There are many ways that we can help you manage your money more easily and avoid unplanned overdraft charges. Sign up for our PhoneBank, Internet Banking and Mobile Banking which can all help you keep a closer eye on your bank balance. Mobile Banking offers a range of Text Message Services such as Limit Alerts that sends you a text message if you are near to or have gone over your account limit, and for £10 a month our ‘Control’ facility stops nearly all transactions that will make you go into an Unplanned Overdraft. Our Financial Health Specialists are also there to give you free financial guidance to help get your finances into shape.
If you go overdrawn (Planned or Unplanned) by £10 or less, you won’t pay any overdraft fees or interest. If you do go overdrawn, our Grace Period means that you have until 3.30pm (UK Time) to pay in enough money to avoid any overdraft fees you may incur that day. The money needs to be immediately available to use, so you could transfer money from another personal account you have with us via Mobile Banking, Internet Banking or Telephone Banking or pay in cash over the counter in branch.

jonesMUFCforever

The new fees will be collected in February not January 2011.

faagble

This is old news. Vote with your feet.

loveandlight

The new fees will be collected in February not January 2011.

Well Lloyds Bank must have told me wrong then because they told me just a few hours ago that the changes took effect from 2nd December 2010 and collection will start from peoples accounts on Tues 4th January 2011 because of the Bank Holiday.