Lloyds TSB: Another Victory for the Whingers

Rogerb_2

ManAtHome wrote:

Well it was a bit obvious that the banks weren't going to let a few hundred million quid profit slide away...

Personally, I've had very few problems with bank accounts over many years - certainly wouldn't want to go "cash only".

I too have never paid one of these £30 type charges in my life because I manage my account, but if I did I would have challenged it so I don't blame those who have.
My original T&Cs I signed up to about 40 years ago never had these out of proportion charges but I wasn't going to move from an efficient bank just because they brought them in ( as they didn't affect me personally ).
The banks have got profit greedy and without customer pressures they would charge even more, as well as moving the charges around.

Tootsie_Roll

southernscouser wrote:

So when I was 4 I agreed to these terms did I?

Nah! :rolleyes:

Like you had an overdraft, debit card, standing orders and direct debits when you were 4 ! :rolleyes:

keep on topic.

System

A bit of a thick question here. I am a bit too ashamed to ask in a new thread but my question fits in here nicely so i will go ahead.

I have a £500 overdraft facility on my Lloyds Classic Plus account. To be honest, i have drawn up to £50 on my account without paying any fees for doing so. Now i have received one of these letters stating they are taking away my 'buffer'. To be honest, i didnt know i had one. I just thought it was part of my overdraft facility:o . My husband also has a Classic Plus account but gets charged if he goes into the red even by a minimal amount. I never understood why i got this privilge and he didnt but never questioned it and hubby didnt either.

So now, i am going to have to use the overdraft facility if ever i go into the red. I am now wondering how this overdraft works. Do i get charged for every standing order/direct debit/withdrawal i make on my account? Also how much is this likely to be per transaction?

Paul_Herring

Judi wrote:

I have a £500 overdraft facility on my Lloyds Classic Plus account. To be honest, i have drawn up to £50 on my account without paying any fees for doing so.

I assume by that, you mean your balance went down to -£50, not -£550. If that's the case, then you won't pay any fees. Just the interest on the £50 for however long you were 'in the red'.

Now i have received one of these letters stating they are taking away my 'buffer'.

As I understand it, the buffer is an *extra* limit of £10. How it [strike]works[/strike] worked with an overdraft I'm not sure - it was you could either go down to -£10 without paying interest or (to use your OD limit) -£560 without paying fees.

So now, i am going to have to use the overdraft facility if ever i go into the red. I am now wondering how this overdraft works. Do i get charged for every standing order/direct debit/withdrawal i make on my account? Also how much is this likely to be per transaction?

As long as your account is between £0 and -£500 all you will pay (extra) is interest on the amount you are effectively borrowing. No fees, no penalties. Once you go below -£500 is when the fees will kick in.

southernscouser

Tootsie_Roll wrote:

Like you had an overdraft, debit card, standing orders and direct debits when you were 4 ! :rolleyes:

keep on topic.

My point exactly. The bank decided to upgrade my account. Not me. And at no point did I sign anything! :rolleyes:

System

assume by that, you mean your balance went down to -£50, not -£550. If that's the case, then you won't pay any fees. Just the interest on the £50 for however long you were 'in the red'.

I meant my balance went down to -£50 sorry that i wasnt clear and thanks for the enlightenment.

southernscouser

alexjohnson wrote:

Utter rubbish. Maybe you didn't sign anything - I'll take your word for it though it would be unlikely - but your kiddie savings account with a free plastic pig to put your pennies in didn't just morph into a full current account with a debit card, and if you believe it did, that says a lot about your attention to detail, and why you might have been on the receiving end of bank charges.

:rotfl:

Thanks for the compliments! :rolleyes:

Why would it be unlikely? There are thousands of people out there who have received credit and such without ever having signed a credit agreement!

And it wasn't a plastic bag. It was a pig!

System

I think this thing can get out of hand easily.

Banks change their charging regimes frequently. There is no evidence that the Lloyds TSB change is solely on the basis of these legal challenges. It’s equally possible that they want to make more profit – this is not entirely surprising.

As for the banks charges, i take the point that some people may have caused them by their actions. But the point remains; the charges appear to me (as someone who has worked in the banking industry) to be substantially above cost. If the banks simply passed on their costs, there would be a court case, they would win, which would set a precedent – game over.

I for one want this issue to be settled in a court. I think of UK taxpayer’s money the banks are wasting by dragging this whole thing out in the court system.

homersimpson_3

They are also apparently taking the £10 buffer away (basically if you went overdrawn before they wouldn't charge you if it was under £10 of limit agreed with them). (this does not apply to their plantinum orpremier account).
they are also apparently capping their fees for returned items so if you can't pay cheque, direct debit, or standing order they will apply max of 3 of these charges a day. (say if charge is £30 that's still £90).
Is this trend to continue- are there other examples from banks and building societies etc?

itsarichmansworld

Guys LTSB have taken away the ability to clear a cheque in one day if you have a select account,
Does that mean it the the "whingers" fault?

I dont think LTSB just want to make more money

I wish I went to Court now