Lloyds TSB.. what a rip off

kev1n3

Hi Guys.. been asked to move this enquiry here. Not sure if this is the place either... can anyone tell me if it Is normal to be charged £30 every time I go into my overdraft using my debit card?
I only used £120 some weeks back for one week, they took another £30 to make it £150 before I put my account back into the black 7 days later. . They charged me £30 for using my overdraft and even used my overdraft to take it.. what a rip off.

Any advise would be well recieved.

Thanks

Kev

Dazza.mk_2

Sound like you went above your agreed opverdraft

per LLoyds website:

Overdraft excess fee Charges
We charge this when you go overdrawn and don’t have an overdraft facility, or if you go overdrawn above an agreed overdraft. We will charge this fee again on each day we make a payment for you that increases your overdraft.
£30 a day (maximum of 3 charges in any one monthly charging period - maximum of £90)

ZenUK

Have a read of Martin's article on Bank charges.

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1141050760,24632,

Claim back upto 6 years worth.

Step by step process and easy to follow.

Good luck!

richt71

kev1n3 wrote:

Hi Guys.. been asked to move this enquiry here. Not sure if this is the place either... can anyone tell me if it Is normal to be charged £30 every time I go into my overdraft using my debit card?
I only used £120 some weeks back for one week, they took another £30 to make it £150 before I put my account back into the black 7 days later. . They charged me £30 for using my overdraft and even used my overdraft to take it.. what a rip off.

Any advise would be well recieved.

Thanks

Kev

I had a huge fight with Lloyds last year regarding same. I was ill in hospital for about 6 weeks. I asked my dad to explain I was ill and to ask the bank to stop all direct debits as I work for myself and I was worried that without me moving money I couldn't cover the dd.
Anyway my dad contacted them and they said they'd sort it but they did not. The upshot was that after I came out of hospital I had £600 worth of bank charges..charges upon charges. I complained and complained but it took me nearly 10 months until I got hold of someone senior, who took one look saw what had happened and we agreed to close the account and all charges.
It worried me at what point do banks stop these silly charges??

smudge2006

kev1n3 wrote:

Hi Guys.. been asked to move this enquiry here. Not sure if this is the place either... can anyone tell me if it Is normal to be charged £30 every time I go into my overdraft using my debit card?
I only used £120 some weeks back for one week, they took another £30 to make it £150 before I put my account back into the black 7 days later. . They charged me £30 for using my overdraft and even used my overdraft to take it.. what a rip off.

Any advise would be well recieved.

Thanks

Kev

Try to stop spending money and keep an eye on your account?

JohnPeard

I am not sure if this line of debate has been aired elsewhere, but it might be relevant.

When you try to buy something on a CC, and the purchase exceeds your credit limit, the card is (usually) declined.

When using a Debit card, why isn't the same check made?

On the payment slip it always give an 'authorization' number. So, presumably the bank cannot argue that this was an 'unauthorized' overdraft?

Surely the bank would not permit you to use your card resulting in and unauthorized o/d? I mean, that would mean they would have to charge you £35 ?? The nice honest banks wouldn't work like that, would they?

oldagetraveller

JohnPeard wrote:

When using a Debit card, why isn't the same check made?

I don't know if I was lucky but I had my smile debit card declined once due to insufficient balance, even with a full £500 overdraft intact. In fact smile 'phone me later the same day to make sure it was me who actually tried to use the card.
So possibly all banks aren't the same?

JohnPeard

Al_Mac wrote:

What would you rather, a charge and letting it through, or a bounce? And probably a charge for the bounce

Qu. Would you rather be hung or transported to Botany Bay for attempting to steal a loaf of bread?

Ans. Neither, both are obscene.

If there is not enough money is not in someone's account when paying by debit card, simply decline the transaction.

If the bank 'authorizes' it - or if its agent does, then the transaction has been authorized, so there can be no claim by the bank for a penalty.

Is it me, or what? I am absolutely convinced the whole procedure is nothing but a scam operated by banks to rip-off customers.

Zebedee69

Im with Lloyds and just got charged £30 for the same privalege.

Completely my fault as I was out of work. Luckily im back in work and I should have my Overdraft (£500) paid back in a few weeks which is good because its at 15% apr so im not 100% happy to be paying it.

So thats it chick, you have to be responsible with your money. Overdrafts are useful, hell if I didnt have mine the car wouldnt have had petrol to go to the Interview for the job iv got now so its all good. You just have to make sure your always above water and keeping a clean (ish) sheet.

You cant blame Lloyds for charging you for going over your overdraft. They are a company???? they make money by lending/saving/investing money??? They lent you the Overdraft money in the first place and if you went over it????? its your own doing. Did you realy need to buy whatever it was you bought? I know I did and for that reason Im fine with it. I contacted Lloyds and talked the problem over with them and they know where they stand RE: Having my O/D paid probably by end November. They were happy with that and they'll get paid to boot.

Im not contesting the charges because:-

a: They are my bank and I dont want to mess my chances of getting access to credit cards/mortgages.

b: Big business can be spiteful. For example I know that a certain car insurance company has an extra charge of £14 admin fee that can be waived if the customer is nice on the phone. Treat them like a div and you'll pay....... Simple.

Oh..... and I trust you didnt hear the bit about £14 charges (mums the word)

JohnPeard

Zebedee69 wrote:

Im not contesting the charges because:-

a: They are my bank and I dont want to mess my chances of getting access to credit cards/mortgages.

b: Big business can be spiteful. For example I know that a certain car insurance company has an extra charge of £14 admin fee that can be waived if the customer is nice on the phone. Treat them like a div and you'll pay....... Simple.

OK, people on this site have differing views on whether they believe the UOD and returned fee charges are 'reasonable' or an 'unfair penalty'. If you are happy with them, fine.

What I find perturbing from your reply though, is that you wouldn't take them (the banks) on anyway, because of fear of their power and the damage they can cause you.


But isn't this precisely at the root of the problem? The banks have imposed swingeing charges - totally out of proportion to their real loss and costs - in the belief (up to now) that nobody has the b***s to challenge them.

As for 'spiteful', that's a real euphemism for being downright nasty, being prepared to financially cripple some people. How can any bank really justify charging £38 for going £1 over a credit limit? They can't - and it isn't just unfair or unlawful, it' s plain evil.

anniecave

I have a simple plan, I aim to always keep at least £200 in my current account, so (fingers crossed) I have never been charged for going £1 into the red. I also keep a close eye on what's due to go in and out, and am currently juggling about 5 regular savers and am still managing OK.
My advice would be always look at what is due to be going in and out, and have £100 or so somewhere you could access if need be eg a instant access savings or in my case my flatmate would have some cash I could borrow!