Lloyds make agreed overdraft very expensive

jonesMUFCforever

I have asked this before with other postings - what will it cost you with other banks ifyou move???

anna42hmr

MyKeey wrote: »

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

Reference to First Direct their account costs £10 a month unless you pay in a certain amount each month from external sources (ie salary) or maintain a balence of £1500+

if you maintain that balence, then to move just because of the overdraft charges is not really any sense as would not be charged for going into an overdraft

noizeuk

This is a good move by banks. IF you think its expensive.. control your cashflow and avoid going into excess. Tighter management of money by more people will help the countries debt.

marvin

noizeuk wrote: »

This is a good move by banks. IF you think its expensive.. control your cashflow and avoid going into excess. Tighter management of money by more people will help the countries debt.

If people do tighten all good but they won't they will just pay higher fees to the banks or it will push the debt elsewhere, where it will most likely be added too.

Won't do much for debt will do nothing for the economy as people will have less money to buy goods or services.

Not sure what their thinking is here, they will lose all those who occasionally use OD as a short term tool, the way it is supposed to be used it is not a long term debt solution, and have the choice to move elsewhere (have already linked my trading account to another of my 4 debit cards). I hate to think that their thinking is to make as much money out of the cash strapped as possible I hope it is yo push those who do use OD as a long term loan to think of alternatives, but then if it was punishing those who use it correctly does not point to this.

noh

anna42hmr wrote: »

Reference to First Direct their account costs £10 a month unless you pay in a certain amount each month from external sources (ie salary) or maintain a balence of £1500+

if you maintain that balence, then to move just because of the overdraft charges is not really any sense as would not be charged for going into an overdraft

Having another product with FD avoids having to pay the £10 fee.
£1 in a savings account is sufficient.

http://www1.firstdirect.com/1/PA_1_1_S5/content/content_static/pdf/rates_charges.pdf;jsessionid=0000p99PnqY2icmVVO7O9nSOp1Z:11qks5bhc

Malory

marvin wrote: »

Not sure what their thinking is here, they will lose all those who occasionally use OD as a short term tool, the way it is supposed to be used it is not a long term debt solution, and have the choice to move elsewhere (have already linked my trading account to another of my 4 debit cards).

I don't know if there is confusion about this. You only pay the £5 fee when you actually use the overdraft, not every month. So if you go into your overdraft once or twice in the whole year (my definition of "occasionally") you will only be short £5 or £10.

You do not pay a £5 fee every month.

I opened a Lloyds Classic account with this feature several months ago. I have an authorised overdraft but have not paid any £5 fees because I haven't used the overdraft.

marvin

Malory wrote: »

I don't know if there is confusion about this. You only pay the £5 fee when you actually use the overdraft, not every month. So if you go into your overdraft once or twice in the whole year (my definition of "occasionally") you will only be short £5 or £10.

You do not pay a £5 fee every month.

I opened a Lloyds Classic account with this feature several months ago. I have an authorised overdraft but have not paid any £5 fees because I haven't used the overdraft.

Now work out how much that once or twice for a few days is actually costing, not the 5 or 10 quid the actual % it costs.

I made this point as it is every month and not a once off fee everytime you use the facility, IE you pay £5 the first time you go over drawn and don't get charged it again if you stay OD (never come back to credit as some do) or even charge it if you stay OD for two months so those who come back into credit within a short time do not pay it at all. It really should be included in the interest rate charged, this stopped credit card companies charging when the fee had to be added to the interest rate.

Obviously if you never use the OD you will never pay a charge, I won't pay a charge again but also I won't be using Lloyds for any other business I have going, won't consider them for a mortgage or a loan or anything else (including the business banking account we are in the process of getting set-up) that makes them money.

MyKeey

Just as an update - I have moved. To First Direct. Thanks for the note on charges, but my wages go in and cover it, so no charges there.

Plus they gave me £100 just to join, all paid in and working well.

Sorry Lloyds - still hope someone gets fired for it...

paulmcerlean

MyKeey wrote: »

Just as an update - I have moved. To First Direct. Thanks for the note on charges, but my wages go in and cover it, so no charges there.

Plus they gave me £100 just to join, all paid in and working well.

Sorry Lloyds - still hope someone gets fired for it...

I sure Lloyds give a !!!!.

MyKeey

Did you miss a

'm

out there?

Actually they do give a !!!! - They rang a few times to find out why I was moving and even offered a 'special rate', which I am not interested in - I already started the ball rolling with First Direct and wasn't going to mess FD about.

I have home/contents insurance with them - will be going elsewhere in August. I have a car loan which ends early next year. I finished the credit cards (duo Mastercard & Amex), which I have moved to FlyBe for flight points and I moved the money in my savings account into my Stocks & Shares ISA allowance before it ran out.

According to the lady in the bank when I went in to finish up I had the top credit rating - so that explained why they contantly bothered me when I went to pay a bill or something!

So Yes - I do feel they gave a !!!! after all - so there!