Lloyds TSB Overdraft fees advice

danpa

I've been with Lloyds TSB for 12+ years now and have a current account with a planned overdraft of £1,750.

I've never gone into my overdraft until July 2012.
Money was tight and with lots of things to pay, I ended up maxing the overdraft, though I stayed within the limit by £10-£20.

I was making minimum payments to cover the monthly interest and the overdraft usage fee, which summed up to around £35.

I eventually managed to repay the overdraft on December 17th.
So naturally I assumed that I no longer would have to pay any interest or fees.

However, I checked my account today and found that on the 3rd January, they charged my usual fee and interest on the overdraft.

I called them up and asked them why, and they said it was to cover the whole of November when I was still in my overdraft.
He also told me that in February, I will be charged for the time I was in my overdraft during the first couple of weeks of December.

Anyone have any advice about whether I can get these charges waived/refunded?
Seems a bit unfair to charge a month's interest when it was only 2 weeks.

noh

You will only be charged interest for the days you were overdrawn. The monthly fee of £6 applies if you use the overdraft at any time during the month.

http://www.lloydstsb.com/legal/current_accounts_legal/personal_overdraft_page.asp

jonwatson87

I don't know about anyone else, but I'm getting fed up of Lloyds.

Are these fees even legal? Is there any way to reclaim them?

My partner is with NatWest and pays no fees other than interest when dipping into a planned overdraft.

Seriously thinking about moving to NatWest and giving up on Lloyds and their ridiculous systems.

We recently had trouble applying for a loan, as well, because Lloyds formula is absurd. They CANNOT take into account debt you'd be paying down, only available cash you have on hand that could pay for another loan agreement.

Surprise, surprise, NatWest were able to offer us a loan (though we got a better APR by going to Sainsbury's!).

I'm going to go back through my accounts in a bit and see how much Lloyds and their bogus fees have actually cost me.

jonwatson87

Nevermind - scratch that. Just read that NatWest are introducing this charge as of 12th July! *SIGH*

meer53

jonwatson87 wrote: »

I don't know about anyone else, but I'm getting fed up of Lloyds.

Are these fees even legal? Is there any way to reclaim them?

My partner is with NatWest and pays no fees other than interest when dipping into a planned overdraft.

Seriously thinking about moving to NatWest and giving up on Lloyds and their ridiculous systems.

We recently had trouble applying for a loan, as well, because Lloyds formula is absurd. They CANNOT take into account debt you'd be paying down, only available cash you have on hand that could pay for another loan agreement.

Surprise, surprise, NatWest were able to offer us a loan (though we got a better APR by going to Sainsbury's!).

I'm going to go back through my accounts in a bit and see how much Lloyds and their bogus fees have actually cost me.

The banks won the court case against unfair fees back in 2009 so it has been challenged. If you don't like their fees policy, change banks, you don't have to stay with them.

Most banks will take ALL outstanding debt into consideration when lending more money, how can they be sure that if they lend you more that you will use it to repay what you already have ? They can't, which is why they take it into account. I work for a bank (not Natwest or Lloyds) and we would make the same decision when deciding whether to lend to you or not.

You might get a refund of recent fees if you've not had one previously. Ask them.