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LLOYDS TSB - Planned Overdraft charges
Comments
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mcpaderson you are aware of the prices lloyds charge for their services.
Why, when you make use of one of those services, do you think you should not have to pay the fee you were aware of and agreed to?0 -
Hi
This is my 1st time posting here.
Let me assure you, as I found out today, that Lloyds do not only charge you the £5 plus interest if you go over drawn for a day but they charge you if it's just a SECOND. On Dec 1st I had 3 payments coming out of my account and 2 payments going in. All standing orders and direct debits. At the end of the day I was some £1200.00 in credit but because one of the payments came out before the 2 payments went in (which could have been seconds apart) my account was showing I went into my overdraft and I got charged for it. On talking to Lloyds their suggestion was to pay the money in the day before. Which in itself is a problem as the payments in, came from the account that my wages get paid into (and i get paid on the last day of the month). Which means depending on what time of day the transactions take place (which is out of your control if they are SOs or DD) will depend on whether you get bank and interest charges.
THIS IS INFURIATING WHICH EVER WAY YOU TURN THEY WILL GET YOU0 -
On talking to Lloyds their suggestion was to pay the money in the day before.
Which is fairly standard across the board with most banks. Indeed, some state it in their T&C.Which means depending on what time of day the transactions take place (which is out of your control if they are SOs or DD) will depend on whether you get bank and interest charges.
SO & DD come out before the staff even get in the building. So, unless the money goes in the day before then you are always going to be risk of having a potential excess over your limit.THIS IS INFURIATING WHICH EVER WAY YOU TURN THEY WILL GET YOU
Or logical as I see it. The bottom line is that you should have money in your account before you take money out of it otherwise you will pay charges. That is pretty straight forward to understand. If you leave it to same day and hope money in/out go against each other then you are taking risks and that will result in charges periodically.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
mcpaderson you are aware of the prices lloyds charge for their services.
Why, when you make use of one of those services, do you think you should not have to pay the fee you were aware of and agreed to?
@noh
When Lloyds advised me to take this overdraft there was no such fee, that was when I agreed to take it.
So I did not agree to it and I was not aware.
I realise that they probably have outlined this procedure in the small print in a letter they have sent me but to be brutally honest, I get in after work between 8-9pm and I would rather spend my time relaxing instead of reading their t & C documents.
I therefore accept that Lloyds probably have informed me, but I was not aware (admittedly this is my fault). I am sure if they wanted money off me, they would make sure the request was clear and not hidden in small print.
Anyway, yes I should read every bit of small print but in reality I don't and Lloyds realise most people don't.
I am not saying they didn't tell me but I still think that a new £5 fee is cheeky and unjustified and just seems a new way to make money. What does that fee actually cover? Like I say, interest is charged for being overdrawn which is fair enough, but the extra £5 is a penalty and money maker and nothing more. As has been said above, the charge occurs even if you are overdrawn for a second!
I am surprised with the feedback here and was hoping for more comments on whether people are happy to pay the new £5 fee or not.
Anyway, now that I am aware, I intend to change banks.
I work in the service industry and if we were going to impose further and new charges on our clients we would make it plain and clear.0 -
mcpaderson wrote: »...I work in the service industry and if we were going to impose further and new charges on our clients we would make it plain and clear.
Which they did.
By your own admission you failed to read what was sent.0 -
fiifreally wrote: »I do not think customers want advice purely motivated by profitability to financial houses/advisors.
That is what they have got and that is what the FSA will be making mandatory from 2013. Any business person or self employed individual would know that. It is harder for employed people to understand because they get paid regardless (until the company fails).
Would you do a job that earns you say £50 for 6 hours work but has costs of £300 and a lifetime of liability? No, not unless you are stupid and plan to be out of business. You would charge say £750 for it. If the person then says no thanks to that then you let them walk away.
There is nothing to be earned from running at a loss unless there is future benefit to be obtained.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
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That is what they have got and that is what the FSA will be making mandatory from 2013. Any business person or self employed individual would know that. It is harder for employed people to understand because they get paid regardless (until the company fails).
Would you do a job that earns you say £50 for 6 hours work but has costs of £300 and a lifetime of liability? No, not unless you are stupid and plan to be out of business. You would charge say £750 for it. If the person then says no thanks to that then you let them walk away.
There is nothing to be earned from running at a loss unless there is future benefit to be obtained.
It is certainly hard to understand when the company gets bailed out with tax payers' money. What you say only applies to a purely private company.
You are really going off on your own tangent here, there is no loss being made to them from me going overdrawn for less than a day, as I said, they get interest for this period, as they always did, this is to compensate for me being overdrawn, the£5 per day fee is extra, and they never needed it before.0 -
It is certainly hard to understand when the company gets bailed out with tax payers' money. What you say only applies to a purely private company.
Lloyds are still trading and were not nationalised. The Govt became a shareholder. So, same applies.You are really going off on your own tangent here, there is no loss being made to them from me going overdrawn for less than a day, as I said, they get interest for this period, as they always did, this is to compensate for me being overdrawn, the£5 per day fee is extra, and they never needed it before.
Its not off tangent. You seemed to think your 20 years of banking with them made you worth something. The fact they havent refunded suggests it isnt as we know they have a profitability rating for each account holder.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
mcpaderson wrote: »You have failed to read the words "PLAIN" and "CLEAR" - we would not hide the notice in the small print of a 20 page booklet.
What I didn't fail to read was the updated T+Cs when they were sent to me.
They were not hidden nor were they in "small print"0
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