More antics from LLoyds

ermintrude1

I've posted before about LTSB messing about with automated payments and transfers for no apparent reason other than to incur charges on customers a/cs and create revenue for themselves.

I have been called paranoid on these forums for making such a suggestion previously.

However, on Tuesday, my OH paid off his LTSB credit card, by telephone, from his LTSB bank a/c.

Yesterday, he received a letter from LTSB fraud dept informing him that the payment was suspended as it was under investigation and they had accordingly suspended his internet access.

He spent at least two hours on the phone yesterday being passed from dept to dept - the fraud dept said they hadn't suspended the payment, when challenged with the letter content, they stated the information in it was wrong and were also unable to explain why a regular 'in house' transfer was suspicious. They insisted it was down to the internet banking dept, who likewise insisted it was out their hands and needed to be cleared through the fraud dept.

Round and round the mulberry bush. :mad::mad::mad:

Result - OH has incurred late payment charges and a further months interest on the credit card a/c - not to mention a two hour plus phone call bill on his mobile.

Well done LTSB :T

jalexa

ermintrude1 wrote: »

Well done LTSB :T

To employ exactly the same irony "well done ermintrude1" (for not employing the complaints procedure).

ermintrude1

Thanks for the misplaced sarcasm, but this isn't about my account, therefore I cannot complain.

You must have overlooked that - do you work for LTSB?

kit77

Was there a ref number on the letter starting TT/TP?

Internal payments in Lloyds TSB can and do flag for security checks.

I have had it myself and yes they are a pain however they are not there so Lloyds can get more money out of customers they are there to protect the customers money believe me if your money was moved fraudulently from your account you would not be happy and would be grateful for these security checks.

If you OH has incurred charges through this delay in his payment then all he has to do is ask Lloyds to refund them and they will.

jambosans

Get your OH to make a formal complaint and stop filling their head with unsubstantiated nonsense. If you want them to take you seriously, stick to the facts, and leave the paranoia out of the complaint.

opinions4u

If you OH has incurred charges through this delay in his payment then all he has to do is ask Lloyds to refund them and they will.

It really is no harder than this. Also ask for compensation for time needed to resolve it and telephone call costs, and ask them to confirm that no credit file issues will be reported.

The problem is around fraud prevention, not income generation.

Just ask.

Well done those that ask!

ermintrude1

kit77 - he will be reclaiming charges incurred, however, I do not understand how a transfer between two accounts, held by the same person and adminstered by the same bank, with a long a history of interaction between the two accounts, can be in anyway considered suspicious or fraudulent.

Yes, I understand and applaud that fraud prevention activities are being undertaken to safeguard account security, yet in this instance there is no potential for fraud that I can see - the only 'loser' in this transaction is the bank's credit card division's loss of interest on a cleared balance.

If you can explain how this might otherwise be a potentially fraudulent transaction I would appreciate the insight.

ermintrude1

In reviewing the other comments above, I would expand on my last 'leaving out the paranoia'

Given that security checks are a necessary function, this incident would appear to suggest that transactions are selected at random, without any common sense parameters being applied, meaning that any real fraud detected through them is merely a lottery type statistic.

Thamks everyone for the reclaiming advice - I wonder how many people don't do it though?
Ah well, their loss is the bank's gain.

kit77

Well I am no expert but having seen this first hand fraudsters will send payments from a customers account to an account they have already paid or to another account with the same bank to try and fool the system that it is a genuine payment if this is sucessfull they will then try to move money to an external bank account.

I believe that the fraud system monitors all payments made internally and externally and if there is something out of the oridnary it will flag. Now this does not mean that the actual payment is out of the ordinary but could be something else like entering your telephone banking ID number incorrectly recently or changing your personal details or even making a high number of payments during a short time frame even if they are low amounts.

Lloyds will never tell you the exact details as to why your payment will flag as they do not want (understandably) fraudster to know how to get around this and I belive that they change the rules frequently of how payments are moniterd but I hope this gives you some insight.

Having had fraud myself this is how it was explained to me.

I am sorry for any spelling mistakes but I have one hand bandage up at the moment and my typing is not so good.

iereboy

Fraudsters will target people with multiple products with one financial institution. If your credit card is comprised and you regularly pay it off - the fraudsters will do you a "favour" and pay it off for you with your current account whilst spending on the credit card.

They know that the current account is harder to get the money out directly, so will get it out a different way.

This is why with Lloyds, in house transactions are flagged even if it is going from the left arm to the right arm.

There are other examples of in house fraud. Lloyds will NEVER tell you precise reasons why some accounts are closed down or some payments are flagged as suspicious.

Op, I bet if fraud did happen you wont be best pleased and you would be shouting the house down.

hermante

I don't understand why lloyds has to suspend your internet banking, why not just block payments from the account in question?