Lloyds TSB Overdraft Charges

zppp

bachey03 wrote: »

After doing a bit of research today alot of banks do offer interest free overdrafts for a short period of time (3 months - year).

Check out Barcalys, Nationwide and Alliance and Leicester (cant add links because im a new user?)

Lloyds also offer interest free overdrafts for students and some of their certain current accounts if you agree to pay back within a short timescale.

Are you a student? If not what type of account do you hold with Lloyds? Looking at their products the maximum interest free limit I can find (bar student accounts) is £500 interest free with their 'Premier Card'.

bachey03 wrote: »

To suggest that it is made up is foolish as alot of banks do actually offer interest free overdrafts!

And i wasn't asking for advice on how to bank! Thanks

It's foolish to say you purchased an overdraft.

bachey03

I am not a student and hold a standard current account. I recieved a letter yesterday stating the normal overdraft interest rate so at least i am aware of what i will be charged now. I am still very confused about why i was offered an interest free overdraft in the first place, but im not the only one!

BLT_2

I don't understand why any bank would offer a 0% interest overdraft for a year. You get an overdraft for 3k, transfer it all into a savings account with the same bank and they pay you interest on their money.

I know the banks are much maligned, but surely they are not that stupid?

YorkshireBoy

BLT wrote: »

I don't understand why any bank would offer a 0% interest overdraft for a year. You get an overdraft for 3k, transfer it all into a savings account with the same bank and they pay you interest on their money.

I know the banks are much maligned, but surely they are not that stupid?

I have a £10K facility with A&L. It was interest free for the first 12 months, but now I'm charged £5 per month for it (50p per day, capped at 10 days per month).

That £10K has been sat in savings accounts for over 2 years now, and currently makes me an annual net return of £260.

So yes, they are "that stupid"...thankfully!

Premier_2

YorkshireBoy wrote: »

I have a £10K facility with A&L. It was interest free for the first 12 months, but now I'm charged £5 per month for it (50p per day, capped at 10 days per month).

That £10K has been sat in savings accounts for over 2 years now, and currently makes me an annual net return of £260.

So yes, they are "that stupid"...thankfully!

Unsurprisingly, this account is no longer available to new customers.

All new customers will face authorised overdraft interest rate typically of 12.9% or more
(there is one account that still has a 12 month introductory interest free period)
http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1237853249818&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateG

bachey03

YorkshireBoy wrote: »

I have a £10K facility with A&L. It was interest free for the first 12 months, but now I'm charged £5 per month for it (50p per day, capped at 10 days per month).

That £10K has been sat in savings accounts for over 2 years now, and currently makes me an annual net return of £260.

So yes, they are "that stupid"...thankfully!

Thank god you posted this!!!! :T I thought i was going mad!!!

Is there anything i can do about this or should i accept the 30 pound and move on?

YorkshireBoy

bachey03 wrote: »

Is there anything i can do about this

http://www.lloydstsb.com/contact_us/complaints_procedure.asp

or should i accept the 30 pound and move on?

If you dropped £30 would you walk on and let someone else pick it up?

bachey03

I complained through my bank and they sent it higher. I then received a phone call from lloyds saying they couldn't give me the stated interest and they said they were offering me the 30 pound! This was over two weeks ago! Should i complain again?

NomChom

I extended my planned overdraft with Lloyds 5/6 or so weeks ago, and in all honesty knew that i was signing up to a high interest rate.

However, i too recieved a letter stating that the interest rate would be 0%. I subsequently (perhaps 2 weeks later) recieved a letter acknowledging this mistake and informing me of the 'correct' interest rate.

Tempted to complain, but think it would be a bit cheeky! Would probably be fair though to not charge me any interest on the period of time between the letters.....

mystery_united

Bachey

You will have most proberly decided what to do with regards this now.... At the end of the day it is what you are happy with..


My 10penny worth:

You are not going to get a deal like this elsewhere at the moment, If as you say it was advertised as a 0% overdraft for 12months and lloyds accepted you onto that deal and then they changed their mind - Write a letter of complaint to the Lloyds complaints department - If your still not happy after that you could always write to the Ombudsmen.

OR You could just accept the £30 and pay the overdraft off as quickly as possible.