Lloyds make agreed overdraft very expensive

marvin

Lloyds have started charging £5 per month if you use an agreed overdraft facility (so long as it is more than £10 or £10 over any free overdraft with the paid for accounts).

As they charge interest as well makes any lloyds overdraft very expensive to use.

boogiequeenie

Yeh.. I know what you mean. We have the same thing.

kitschkitty

ummm, sorry but this is old news.

jonesMUFCforever

If you are creditworthy apply for a credit card - use this to avoid going overdrawn - pay it off in full every month == no overdraft required.

One last thing to remember if you are using an overdraft you are spending more than you earn - it might be time to sit down and make a statement of income and expenditure- see where you can cut down on unnecessary expenses.

marvin

kitschkitty wrote: »

ummm, sorry but this is old news.

Not to me it is not

marvin

opinions4u wrote: »

Did you forget to open your post last October?

Don't recall ever receiving anything on it but then unless they scream at me or even put a big warning on the website then not likely to notice.

Not doing anything but trying to make sure that anyone else this has slipped by notices. I didn't, my fault have cancelled the OD facility as I don't really need it just helpful to have it there as a back up just in case it is required but not at this price.

anna42hmr

marvin wrote: »

Don't recall ever receiving anything on it but then unless they scream at me or even put a big warning on the website then not likely to notice.

Not doing anything but trying to make sure that anyone else this has slipped by notices. I didn't, my fault have cancelled the OD facility as I don't really need it just helpful to have it there as a back up just in case it is required but not at this price.

Lloyds wrote to all customers who hold current accounts gradually between july and september to advise of the changes of the overdraft charges.

also are you sure its a good idea to cancel the overdraft facility, as

1. you dont get charged if you dont go overdrawn by more than £10

and

2. if you go overdrawn and dont have the overdraft facility, the unagreed overdraft charge is even higher (ie if you go into an unplanned overdraft of over £10 but under £25 its £5 per day up to 8 days per charging month, and over £25 is £10 per day for up to 8 days) details are here http://www.lloydstsb.com/media/lloydstsb2004/pdfs/banking_charges_brochure.pdf on page 4

marvin

anna42hmr wrote: »

Lloyds wrote to all customers who hold current accounts gradually between july and september to advise of the changes of the overdraft charges.

also are you sure its a good idea to cancel the overdraft facility, as

1. you dont get charged if you dont go overdrawn by more than £10
and
2. if you accidently go overdrawn and dont have the overdraft facility, the unagreed overdraft charge is even higher (ie if you go into an unplanned overdraft of over £11 i think its around £10 per day for maximum of 8 days during each charging period

Yes because I have facilities elsewhere should I need them, where they do not currently charge for the facility only, and if I go overdrawn on this account unplanned I would be a fool as it is largely an income only account. It is however linked to my trading account so sometimes it is better to let it go overdrawn when buying whilst I move money from elsewhere (take advantage of a falling price before it rises) or till payday (as was the case here 2 days to payday better to let it go OD but not with the fee). short periods of hours to a day or two. No problem if all they are charging is a little bit of interest a but not with that whacking great fee.

I shall need to change which debit card is linked to my trading account.

I thank you all for your interest in my finances I promise you I am in full control of them and your advise how well meaning is not required.

As I said some may have missed it like I did (posting letters to customers is one thing them arriving or actually getting read is another and I am not blaming anyone else it is my fault no one elses.) this may act as a help to them if not so what.

FI
My Major OD facility is linked to my outgoing account (income and out goings are separated) where things like my mortgage are taken from. This is there simply incase I forget to get money transferred in, in time to pay them (that account does not pay interest so I keep the money in an account where it does and no I cannot set-up a DD as my wages are paid on a 4 weekly basis so payday is a different day every month. This is a protection for me and not because I over spend the budget.

It is honestly good to know that there are still people out there who care.

CLAPTON

marvin wrote: »

Yes because I have facilities elsewhere should I need them, where they do not currently charge for the facility only, and if I go overdrawn on this account unplanned I would be a fool as it is largely an income only account. It is however linked to my trading account so sometimes it is better to let it go overdrawn when buying whilst I move money from elsewhere (take advantage of a falling price before it rises) or till payday (as was the case here 2 days to payday better to let it go OD but not with the fee). short periods of hours to a day or two. No problem if all they are charging is a little bit of interest a but not with that whacking great fee.

I shall need to change which debit card is linked to my trading account.

I thank you all for your interest in my finances I promise you I am in full control of them and your advise how well meaning is not required.

As I said some may have missed it like I did (posting letters to customers is one thing them arriving or actually getting read is another and I am not blaming anyone else it is my fault no one elses.) this may act as a help to them if not so what.

FI
My Major OD facility is linked to my outgoing account (income and out goings are separated) where things like my mortgage are taken from. This is there simply incase I forget to get money transferred in, in time to pay them (that account does not pay interest so I keep the money in an account where it does and no I cannot set-up a DD as my wages are paid on a 4 weekly basis so payday is a different day every month. This is a protection for me and not because I over spend the budget.

It is honestly good to know that there are still people out there who care.

it's good to know you are not a fool

marvin

CLAPTON wrote: »

it's good to know you are not a fool

Lazy and sometimes fooled but never really a fool

MyKeey

I think this will turn out to be a major mistake for Lloyds.

I have been with Lloyds since I was at Uni - I pay my salary of several thousand into my account each month and will always go into the o/d for a few days and I was always happy with that as it only cost a few quid a month.

I did get the letter back in Oct and thought - hmm maybe I should consider going elsewhere - I HAVE NEVER THOUGHT THAT BEFORE - I was always happy banking with them, but now I'll pay the same few quid (the % didn't go down) plus a fiver every month. Not going to break the bank I know (excuse pun) but I don't like the idea of it. Just greedy to my mind.

Now I'm looking at going elsewhere and I am sure others are too - I am sure they'll lose some good customers because of this, shame really. Whoever came up with the idea should probably get fired.

If anyone has any good recommendations of where to move I'd like to hear them, I'm thinking First Direct or Santander.