Overseas Visa Charges

shanghaitim

I have 2 bank accounts in the UK, one is a basic Barclays A/C that just gives me a debit card, with no online banking, I use it to buy online and occasionally use ATM.
My other is a Lloyds TSB based in the Isle of Man, I have online banking therefore am able to monitor charges.
For almost 5 years now I have been using this card at Foreign ATM machines and always reluctantly paid the £4.50 charge, however recently a new charge has appeared which is a Non Sterling Transaction Fee, and the 3 recent ones have been £12.40.
I phoned the bank and asked for an explanation and they said, " Oh...it is nothing new, we have always charged you this, but have hidden it in the exchange rate"
Now if I had known that I was paying over £16 every time I used the card then I certainly would have found a more economic way of doing things, to transfer sterling into my Bangkok bank for example costs £25.00, if I am only likely to use the card less than 6 times a month I may as well leave the money in Lloyds Tsb account, however it now appears that all along I have been paying way over that and should have transferred to save money.
Are they allowed to charge this without making it clear, and do you think I have a valid claim to recoup these charges, my best estimate is well over £5,000 over 4 years...

dzug1

Yes they are allowed
They have made it clear - recently even clearer
No case for a refund

Buzby

Yup - although the old 'hidden' process helped the bank, did you never compare the rates of what you got and the amount you were charged? Take out 100 of whatever the local currency is and see what hits your account.

I found early on (1988) that the exchange rate was not the expected (reasonable) Interbank rate and got a refund because it wasn't disclosed. I never bother to use them again.

magpiecottage

There are cheaper cards around.

If you are able to get to a Metrobank they offer an account with no foreign withdrawal charges on a Mastercard. I believe some smaller building societies do as well.