Lloyds TSB currency scam/ICE issues

gingerbird44

This is my first post, so bear with me!

I bought some US dollars from ICE currency via the Travel Money Max website with the voucher for a good rate. ICE sold me my dollars and it was 'commission free' with no extra charge. Great, I think.

That's until I get back from my holiday to find that ICE had a problem with their system and put the charge through twice (£600 instead of £300) (this has since been refunded) This was due to a problem with their system.

Then I see that each time the charge went through I was charged £4.49 by Lloyds TSB (my current account providers) for the privilege! Turns out if you don't buy currency direct from Lloyds and you use someone else they charge you!

When I called up to get my refund for the second mistaken charge, I asked why they did this. They said it was in the small print of my account and was 'standard practice'. I personally this is really cheeky. The people at the call centre were very unapologetic and this is another in a long line of mistakes and problems by Lloyds. Am seriously thinking of changing accounts.

Oh and watch out for ICE as well, they kept my money for a week before refunding me the £300. Be warned!

richardw

You didn't 'buy' currency, like buying a jumper in a shop, it was a cash transaction and that is why you were charged.

The way around this is to get £300 cash and get the Euros over the counter.

dzug1

It is standard practice at most banks to make such a charge - so do your research carefully when choosing another one. The info as to who charges ansd who doesn't is on this site.

gingerbird44

But you don't get charged extra when you buy something in a shop. That makes no sense.

And perhaps I should have done more research but sometimes there isn't time for that.

I still don't think this was fair and I think I have a right to that opinion!

richardw

When you buy a jumper in a shop with your card, the shop have to pay a commission to the bank for accepting payment with that card, say the jumper is £40, the shop will have to pay say 2%, 80p, to the bank for accepting payment by the card, the shop would only get £39.20 from the bank.

ICE don't pay commission to your bank for accepting the card and the bank still has to make money so they charge you, they wouldn't do it for free, they are banks at the end of the day.

bagand96

This standard practice with many banks that issue Visa Debit cards (interestingly it was never an issue with Maestro cards, although nearly all banks seem to have moved to Visa Debit). The Travel Money Max website does warn you about this at the top of the page, and also gives a list of the banks that don't charge.

jackieblack

gingerbird44 wrote: »

And perhaps I should have done more research but sometimes there isn't time for that.

I still don't think this was fair and I think I have a right to that opinion!

Of course you have a right to think it's unfair, but its in the T&C you agreed to.

If you don't do your research, for whatever reason, you can't really complain that you're not in possession of all the facts. It's called finding out the hard way. It's happened to evryone at one time or another.... we live and learn and (hopefully) don't make the same mistake again.

Check out no. 5 on Martin's list of 'The five facts everyone should know'

Beware how you pay for foreign cash.
While the holiday money comparison will find you the cheapest rates, there’s another possible hidden charge at bureau de change. All credit cards and some debit cards, including Barclays, Lloyds TSB, Natwest, Santander & RBS, charge a cash withdrawal fee.
Use a different card if possible or withdraw pounds on your debit card and pay with that.