Lloyds TSB Premier Account Scam?

Ultima_K

2 months ago I received a call from my Lloyds TSB branch trying to get me to change to a Lloyds Premier account from a classic account as I have an overdraft of £3.5k and supposedly the interest rate and fees would be cheaper.

I declined as most of the services offered by the account were either useless to me or I had shopped around and got far better deals elsewhere. For example Home Serve came free with my home insurance and I got 15 months full European breakdown cover for £70.

At the end of May I got a call on my mobile, which I didn't answer, and then my works land line asking me to come into the branch to discuss my overdraft as it was up for renewal. My overdraft was not due to be renewed until September 11 according to my bank statement.

Obviously it's quite embarrassing getting a call like this at work in front of colleagues. So I reluctantly agreed to go into the bank on my day off to find out why it was so urgent that I had to come into the branch. I was told that I had to see them face to face as the FSA has told them to review all large overdrafts.

I have a number of loans and credit cards outstanding at the moment and manage to pay them on time and have done for a while. So I am not looking for any more loans or take on any more debt or costs esp. at far higher rates than I have now.

I got to the bank I was taken into an office by a Senior Account Manager who wanted to know my outgoings and debts so she could work out if I was eligible for a loan. I keep track of this monthly on spreadsheets

When I explained that I wasn't interested, I was told that the Premier account would be better due to the size of my overdraft as it has £500 interest free overdraft and 10.5% APR plus I would get lots of services. But the account costs £25 per month.

I said I was happy enough with the account I had and declined. I was told that if I didn't take the new Premier account I would be put on a 'plan' and my overdraft would not be renewed for another 12 months.

If I took the new Premier account, my overdraft would be renewed and I wouldn't have to speak to them again for another 12 months.

The Premier account with the fee and interest works out roughly the same as what I would pay in interest and charges with my classic account.

I am not in a position to pay back my overdraft until a loan clears next year or I get a better more paid job....

I agreed to the Premier account on the understanding that my overdraft would be renewed for another 12 months.

So I received my bank statement today which still tells me that my new Premier account is still up for renewal in September 11 and when I phoned telephone banking tonight there is no notes on the account and confirmed my account will be renewed again in September.

Has anyone else had this experience?

I am thinking this is the new PPI type scandal where the banks are forcing people to take products they don't want or need so that they can keep their credit facility.

Any advice is much appreciated as I am raging and it is yet another issue I have had with LTSB but unfortunately I am stuck with them for the moment.

opinions4u

Send your post to their central complaints team.

They have used disgraceful tactics to sell you the product.

One thing though: does it make you better off?

jonesMUFCforever

What interest charges were you paying per month before changing to the Premier account?

What are you paying now (add £25 on top)?

You tell us if you are better off or not.

If you are then apart from the way they 'sold' it to you you should be grateful - if not complain like hell and name names in your letter.
This is the only way to stop it.

pmduk

You should realise that branch staff are no longer banking staff, but sales assistants. They have no obligation to give you the right advice for you.

Ultima_K

Most of the facilities which come with the Premier account I will not use.

Like worldwide travel insurance and the lounge and meet and greet service at airports. No plans for a worldwide trip this year.

Stuff like mobile phone insurance and save my number are useless as well as my wife works for a mobile phone company.

I might use the credit report, ID aware, and Sentinal services but it's stuff I wouldn't be too bothered about or would pay for.

At the moment I still have 5 months to run on my car breakdown cover. So the AA breakdown is not much use either.

I am pretty sure that I am not saving money using the account and the only reason for switching was the fact that in 12 months I would be in a better position to reduce my overdraft and I wouldn't be hassled by the bank for 12 months.

Ultima_K

pmduk wrote: »

You should realise that branch staff are no longer banking staff, but sales assistants. They have no obligation to give you the right advice for you.

Yes, I know this, which is why I didn't want to make a 40 mile round trip to visit my branch and waste my time.

I told her on the phone I wasn't interested in loans or the Premier account and I was told I must come into the branch otherwise otherdraft wouldn't not be renewed as 'once the system updated that was it'.

opinions4u

pmduk wrote: »

They have no obligation to give you the right advice for you.

They do have that obligation.

In this case, I think they have used deliberately misleading tactics to make a sale.

What hasn't yet been established is whether or not the customer is better off as a result.

Saints2011

opinions4u wrote: »

They do have that obligation.

In this case, I think they have used deliberately misleading tactics to make a sale.

What hasn't yet been established is whether or not the customer is better off as a result.

Well said, if thats how it happened its not on !

paulmcerlean

I am sorry to hear this as my experience has been only positive with LTSB.

I have a gold account and have do use the features and find it good value. I do get asked when I call about upgrading to platinum and premier however when I decline they simply advise I can upgrade via online banking if I change my mind. They never push me, just ask the question.

Ultima_K

opinions4u wrote: »

They do have that obligation.

In this case, I think they have used deliberately misleading tactics to make a sale.

What hasn't yet been established is whether or not the customer is better off as a result.

I know I was paying £50 interest per month with the classic account and fees.

With the Premier Account it's £25 for the account and possibly the same again as interest.

I'm more annoyed that they haven't renewed my overdraft for 12 months as promised and also the inconvenience of the phone call and making the trip into the branch for products I don't need or particularly wanted.

But I need the overdraft so what can you do.

Ultima_K

paulmcerlean wrote: »

I am sorry to hear this as my experience has been only positive with LTSB.

I have a gold account and have do use the features and find it good value. I do get asked when I call about upgrading to platinum and premier however when I decline they simply advise I can upgrade via online banking if I change my mind. They never push me, just ask the question.

The first call was asking me to upgrade a few months ago. The second call was telling me I must come into the branch otherwise my overdraft wasn't going to be renewed which would have caused us problems.

Me and my family members have had nothing but problems with LTSB.

From refusing to take a will and put it in their safe from our terminally ill father in law, who bank with them all his life, because it wasn't in an envelope.

Then stopping my current account and credit cards when we called up asking for an overdraft extension as we had been told our father in law was being moved into a hospice and needed some extra cash as we were travelling from Scotland to England most weekends.

I would not bank with LTSB if I had a choice at the moment and I would rather keep my dealings with them to the bare minimum.