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LLOYDS TSB - Planned Overdraft charges

135

Comments

  • I am also very disappointed with the £5 overdraft fee.

    I think it is very expensive, especially when you get charged interest on top as well.

    I am going to be complaining when I go in there next but know that it will fall on deaf ears and that the only thing I can do is move to a different bank, which I am considering the options at the moment.
  • I am also very disappointed with the £5 overdraft fee.

    I think it is very expensive, especially when you get charged interest on top as well.

    I am going to be complaining when I go in there next but know that it will fall on deaf ears and that the only thing I can do is move to a different bank, which I am considering the options at the moment.

    Exactly. Finally feedback from a customer instead of people in the financial industry (possibly Llloyds staff) defending and justifying the fee increase.

    Customers are not happy and there is no justification in the way of further benefit to customers. The fact that they can do this is irrelevant in terms of consumer happiness (which in turn significantly affects overall profitability before some of you start going off point again).

    Customers will not be happy and, like Mike6345789 and myself, will look elsewhere.

    In view of everything that has been said on this post, where people have spoken out in favour of these fees and stating that Lloyds do not need to keep customers, and that customers of 20 years are not valuable, it is very interesting to see that the lead article in the latest MSE email is the following: "Five big banks are now flinging out cash in a scrap to win your current account custom".

    To me this shows that Lloyds should be looking to keep customers, and if they aren't, all of their competitors are keen to attract new customers and will reward them. It does not take a genius to see what will happen to Lloyds if they drive customers away into the wecloming arms of their competitors.

    Referencing comments from dunstonh, it seems this demonstrates you are not as 'on point' as you like to think you are regarding the business attitudes of the banks. Morevoer, encouraging customers to go elsewhere is clearly bad business practice, particularly when the competition is making considerable effort and marketing aggressively to encourage and reward new customers. It seems you need to be more in touch with the needs and motivations of your potential clients and I hope you do for the benefit of your existing clients. You cannot run a good business with longevity if you ignore the happiness of your clients. In the short term there may be profit benefits, but in the long term your business will suffer.

    Lloyds TSB's stock has fallen by almost 60% in the last year!
  • dunstonh
    dunstonh Posts: 118,549 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Morevoer, encouraging customers to go elsewhere is clearly bad business practice

    Or good if it means you are no longer losing money on that person.
    particularly when the competition is making considerable effort and marketing aggressively to encourage and reward new customers.

    Maybe the competitor is targeting market share rather than profitability. Some do that periodically to get people in. The aim to sell products to them through cross subsidy. It will work with some but not others. However, your existing bank has the advantage of knowing what products you have bought with them and what your profitability is.
    You cannot run a good business with longevity if you ignore the happiness of your clients.

    You cannot run a good business with longevity if you pander consistently to loss making clients. The chord needs to be cut at some point.
    In the short term there may be profit benefits, but in the long term your business will suffer.

    If you are not profitable after 20 years, then how long do you want them to wait?
    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.
  • dunstonh wrote: »

    If you are not profitable after 20 years, then how long do you want them to wait?

    You keep going on about me not being profitable. This is nonsense.

    Lloyds did not assess my profitability, their telephone banking team told me they do not have the authority to waive fees, if I want to make a request I need to write in / make an appointment with my manager.

    So Lloyds have not considered whether or not I am 'worth' waiving the fee for, as you keep saying, instead the person I spoke to told me who I need to raise my concerns with. Moreover, you do not know how profitable I am and I am tired of your assumptions.

    Instead, as I keep saying, this post is simply about what Lloyds customers think of the fee and whether they have taken steps to get them refunded.

    I wish you would stop making assumption and blindly defending Lloyds. It is clear where you stand, you have expressed your view, but you keep taking the post off point and making assumptions that are irrevelant.

    I could be one of Lloyds most profitable customers, or the opposite could be true. Either way, my profitability has not been assessed and the charge is made to all customers.

    Even if I was the most profitable customer they have, I still would have been charged £5 and the telephone banking team would still tell me they cannot waive the fee. Instead you have to meet the manager or write in. As such, this is further inconvenience to customers, including profitable customers.
  • noh
    noh Posts: 5,812 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I am a Lloyds customer.
    I would be happy with the fee should I need to use the service.
    I have accounts with many different banks some charge more some charge less for the same service.
    If I wished to use an overdraft I would use a bank which gave the best value.
  • katwenhill wrote: »
    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 YOU

    If you can't pay money in the day before, what about moving your standing order(s) a day or two later? At least if the Direct Debits are still an issue, if there isn't enough money in your account you'll have until 3.30pm on the day to put funds in your account before they are returned and incur a fee. Maybe it's worth contacting the companies your DDs are with and ask them to move them a couple of days later, if the SOs need to be on that date. To be honest, it seems a bit risky having them on the day you're getting money to cover them going into your account in the first place.

    I had a response to the initial usage fee comments, but it's much the same as what dunstonh has said - I find myself in agreement with your comments on a number of threads! Obviously I understand that you (OP) find it unfair to be charged £5 for what is essentially a day in the overdraft. I am unaware of anyone having it refunded at all, but as you have stated it's definitely against telephone banking policy to do so.

    Have you considered using a 0% credit card for purchases which would allow you to spend some money over this time while your savings are tied up without incurring any interest and therefore hopefully avoid using the overdraft? I'm by all means not a financial advisor, but this is what I'd do.
  • MonkeyMad
    MonkeyMad Posts: 421 Forumite
    edited 15 January 2012 at 12:24PM
    Seems quite simple; you go overdrawn you pay a fee for using the service. If you don't want to pay the fee don't go overdrawn. I don't see the fact that you have sunk your savings into a different asset class ie your home changes the logic?

    So what if you got the overdraft when there were different charges - you are not being forced to use it now are you?
  • dunstonh
    dunstonh Posts: 118,549 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You keep going on about me not being profitable. This is nonsense.

    If you were profitable, they would offer you some sort of refund. The fact they are happy for you to walk away means they dont think you are worth keeping...,. However.....
    Lloyds did not assess my profitability, their telephone banking team told me they do not have the authority to waive fees, if I want to make a request I need to write in / make an appointment with my manager.

    In post 1 you said you spoke to an adviser and that he cannot do anything about the fees I have already been charged and cannot stop any future fees, even if this meant losing a customer of 20+ years. Why are you now changing your story? First it was an adviser. Now it is a call centre telephone clerk.
    I wish you would stop making assumption and blindly defending Lloyds. It is clear where you stand, you have expressed your view, but you keep taking the post off point and making assumptions that are irrevelant.

    You have waited until page 2 of the thread to change your story. I dont think it is me that is taking the post off point. What is the point if you cant tell us the information straight?
    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.
  • MonkeyMad wrote: »
    Seems quite simple; you go overdrawn you pay a fee for using the service. If you don't want to pay the fee don't go overdrawn. I don't see the fact that you have sunk your savings into a different asset class ie your home changes the logic?

    So what if you got the overdraft when there were different charges - you are not being forced to use it now are you?

    Completely agree with this comment!

    Also, people seem to forget that although in the past there was no "£5" fee...there was the infamous £28 fee for going over an overdraft, not having an overdraft and going into an unplanned one...along with multiple £20 charges, plus interest at a ridiculous rate.

    Now there is a £5 charge for using it, reasonable interest charges, and the disappearance of unlimited £20 charges with a £28 charge thrown in monthly for good measure. :eek:

    Some people want something for nothing regardless of the sector...

    The banks changed their practice, afterall they must make money otherwise you would have no accounts...and we'd still be "bartering" to get what we want!

    Storming into a branch and shouting the odds/complaining will do you no favours, out of courtesy of staff it isnt too much to go into a branch in a calm manner and politely ask for some more information or advice regarding XYZ; if that particular adviser cannot assist then politely ask them to pass you to someone who can!

    Would you like it if the branch staff came into your work to shout the odds at you for something that you have no control over whatsoever?!

    As you can tell, i dislike people shouting and balling to get heard...its rude and just plain ignorant, you achieve nothing more than you would being polite...in fact being polite would get you further (complaining section of my post is not directed at the OP but the general public as a whole :D )
    Any input I provide is purely my own interpretation and is in no way 100% accurate, I will try to help as best I can in all cases.

    If you feel one of my posts have helped you in any way please click the "Thanks" button :)
  • dunstonh wrote: »
    If you were profitable, they would offer you some sort of refund. The fact they are happy for you to walk away means they dont think you are worth keeping...,. However.....



    In post 1 you said you spoke to an adviser and that he cannot do anything about the fees I have already been charged and cannot stop any future fees, even if this meant losing a customer of 20+ years. Why are you now changing your story? First it was an adviser. Now it is a call centre telephone clerk.



    You have waited until page 2 of the thread to change your story. I dont think it is me that is taking the post off point. What is the point if you cant tell us the information straight?

    The story has not changed. You went off on a tangent. I spoke to Lloyds customer helpline, they often use the term "adviser" to refer to the people on the end of this line. You use the term telephone clerk, not me.

    Anyway, you are trying to cover yourself and not admit you got it wrong.

    The people on the end of the phone cannot remove fees even if they want to, instead customers need to meet their bank manager or write in to the appropriate office.
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