Overdraft fees LloydsTSB

ggeoff

Hi

Surely this is misrepresentation? LloydsTSB are charging a five pound fee for using an agreed overdraft. And of course they charge overdraft interest. The bank's real overdraft is thus considerably more than the rate they claim.

A bank account without an overdraft facility to me is not worth using but assuming I use my overdraft I will be charged £60 a year.

dr_adidas01

ggeoff wrote: »

Hi

Surely this is misrepresentation? LloydsTSB are charging a five pound fee for using an agreed overdraft. And of course they charge overdraft interest. The bank's real overdraft is thus considerably more than the rate they claim.

A bank account without an overdraft facility to me is not worth using but assuming I use my overdraft I will be charged £60 a year.

Why is a bank account without an overdraft facility not worth it?

It sounds like you use your overdraft a lot then?

debtfreeby2013

ggeoff wrote: »

Hi

Surely this is misrepresentation? LloydsTSB are charging a five pound fee for using an agreed overdraft. And of course they charge overdraft interest. The bank's real overdraft is thus considerably more than the rate they claim.

A bank account without an overdraft facility to me is not worth using but assuming I use my overdraft I will be charged £60 a year.

I have a £500 interest free overdraft with the lloyds premier account. Is upgrading not an option for you?

innovate

People seem to often forget that overdrafts are not permanent loans, and that all banks can, and do, call in and stop overdrafts any time they like. When that happens, some come onto MSE and cry.

It's extremely bad financial management if you think you need to rely on a constant overdraft. Overdrafts are really only of use for the very occasional use.

ggeoff

dr_adidas01 wrote: »

Why is a bank account without an overdraft facility not worth it?

It sounds like you use your overdraft a lot then?

Well, the overdraft may reduce sunstantially or I may be in credit itdepends when my income arrives and people pay me what they owe for work completed. The overdraft arrangment is in operation and at present is being used.

ggeoff

debtfreeby2013 wrote: »

I have a £500 interest free overdraft with the lloyds premier account. Is upgrading not an option for you?

No I don't need all the services that come with the Premier account and it costs £25 a month, I may need to have a higher income as well.

BugsyBrowne

innovate wrote: »

People seem to often forget that overdrafts are not permanent loans, and that all banks can, and do, call in and stop overdrafts any time they like. When that happens, some come onto MSE and cry.

It's extremely bad financial management if you think you need to rely on a constant overdraft. Overdrafts are really only of use for the very occasional use.

Is it really bad financial management or is some people one month may earn less that month or that week or Unfortuantly lost their job and got a lowered pay job and financial management is impossible.

Don't forget not everyone is as fortunate as the next person.

innovate

BugsyBrowne wrote: »

Is it really bad financial management or is some people one month may earn less that month or that week or Unfortuantly lost their job and got a lowered pay job and financial management is impossible.

Don't forget not everyone is as fortunate as the next person.

Yes, I maintain that it's extremely bad financial management if you think you need to rely on a constant overdraft. (It is then that banks will suddenly pull the overdraft facility, too). Nothing to do with being less or more fortunate.

ggeoff

innovate wrote: »

People seem to often forget that overdrafts are not permanent loans, and that all banks can, and do, call in and stop overdrafts any time they like. When that happens, some come onto MSE and cry.

It's extremely bad financial management if you think you need to rely on a constant overdraft. Overdrafts are really only of use for the very occasional use.

It depends what one is doing with other resources. I didn't say I am dependent on my overdraft. I asked what people think of the additional charge for using an overdraft in addition to the interest the bank charge which is much higher than bank rate. At present if I use my overdraft facility and am overdrawn by say £33 Lloyds charge me £5. The next day, I may be in credit.

BugsyBrowne

innovate wrote: »

Yes, I maintain that it's extremely bad financial management if you think you need to rely on a constant overdraft. (It is then that banks will suddenly pull the overdraft facility, too). Nothing to do with being less or more fortunate.

I don't personally use my OD and never have but know people who do and yes they can pull your OD at anytime but come on what really are the chances of that if you stay within your planned OD.

There is more chance your APR going up on a credit card then it is a bank taking your OD away fact.

ggeoff

BugsyBrowne wrote: »

I don't personally use my OD and never have but know people who do and yes they can pull your OD at anytime but come on what really are the chances of that if you stay within your planned OD.

There is more chance your APR going up on a credit card then it is a bank taking your OD away fact.

Yes I agree. I have an overdraft facility and have had one for nearly 50 years and have had no issues with the bank. However, this charge for using an overdraft is a rip off. I have a complicated financial business and do not want to move banks. Other banks may also introduce a charge for using the overdraft facility, so if this is a trend then the solution is to not use the overdraft. Obviously a council of perfection.

I remember the two young men who started Google having to use credit cards to increase purchases of memory, and look how rich they are today.