Lloyds Foreign Currency Fees... Worth a complaint?

tomincognito

Hello,

Just returned from the USA and discovered that using my debit card to withdraw cash whilst abroad quite extortionate.

I looked up the fees before I went away but didn't fully appreciate that Lloyds Bank charge you TWICE per cash withdrawal, one cash fee of up to £4.50, on top of a transaction fee of 2.99% which adds up to nearly £15 in charges every time you withdraw $500 (about £310). The explanation of fees on the website suggests that "you will pay no more than £4.50", which seems misleading as if this is all that you will incur, but this obviously does not account for the second charge.

I'm sure I'm not alone in being outraged at how the banks take a percentage of your own money, purely because you take it out in another country...

Has anyone had any success in disputing these charges? I wonder if it's worth submitting a written complaint, but I am fully aware they may point me to the small print despite being a loyal customer for virtually my entire life.

Any advice or previous experience appreciated!

Many thanks,

Tom

hgotsparkle

I work at an exchange desk and I frequently advise customers that using a debit card abroad is very expensive, they often don't tell you about the conversion fee that you'l get charged, along with the exchange rate and the withdrawal fee.
If you have to use a card abroad, a credit card is best.
You can fight it out with them, and you may get reimbursed but I doubt it'll come easy.

Voyager2002

I am sure that it is in the small print, so they have every right to make these charges. So no use fighting.

Roger1

If you used a Lloyds debit card, it's officially an MSE 'card from Hell'. :eek:

Too late now but before the next time, check http://www.moneysavingexpert.com/travel/cheap-travel-money?&_ga=1.202124626.2125093689.1413209782#howgood

benjus

hgotsparkle wrote: »

I work at an exchange desk and I frequently advise customers that using a debit card abroad is very expensive [...]
If you have to use a card abroad, a credit card is best.

Some sweeping statements there - both debit and credit card charges vary quite a lot.

Out of interest, what kind of spread does the exchange desk you work on take for EUR and USD? A lot of exchange desks charge more than even the bad cards.

callum9999

hgotsparkle wrote: »

I work at an exchange desk and I frequently advise customers that using a debit card abroad is very expensive, they often don't tell you about the conversion fee that you'l get charged, along with the exchange rate and the withdrawal fee.
If you have to use a card abroad, a credit card is best.
You can fight it out with them, and you may get reimbursed but I doubt it'll come easy.

Yes they do - customers just don't listen. I know every time I ever inform my banks I'm going abroad they all read a spiel out about the foreign fees involved.

And of course they tell you before you open the account, and make you reading, understanding and agreeing to the fees a condition of opening the account. If you lie and pretend you understand them when you don't, it's your own fault.

Plus using a N&P debit card (and other well publicised credit cards) abroad is in fact cheaper than using your exchange desk. Using any debit card in chip and pin machines instore is probably similar to the mark-up at your desk as well.

Neil49

They don't hide the charges away. I found this is less than 10 seconds in their guide to charges.

Quote -

We will charge a non-sterling transaction fee of 2.99% of the value of the withdrawal and we will charge a non-sterling cash fee of 1.5% of the value of the withdrawal which will be a minimum of £2 and a maximum of £4.50.
Where you elect to allow the ATM operator/financial service provider to make the conversion to sterling we will charge a foreign cash fee of 1.5% of the value of the withdrawal which will be a minimum of £2 and a maximum of £4.50.
The provider of the foreign currency may make a separate charge for conversion.

Unquote

You were lucky that the US bank didn't also impose an atm charge of $2 or $3 a time (or maybe that is included in the Lloyds charge).

Sorry, I know this isn't what you want to hear but I think you are wasting your time trying to get a refund.

Try and get a Halifax Clarity credit card for future travels abroad.

callum9999

Neil49 wrote: »

They don't hide the charges away. I found this is less than 10 seconds in their guide to charges.

Quote -

We will charge a non-sterling transaction fee of 2.99% of the value of the withdrawal and we will charge a non-sterling cash fee of 1.5% of the value of the withdrawal which will be a minimum of £2 and a maximum of £4.50.
Where you elect to allow the ATM operator/financial service provider to make the conversion to sterling we will charge a foreign cash fee of 1.5% of the value of the withdrawal which will be a minimum of £2 and a maximum of £4.50.
The provider of the foreign currency may make a separate charge for conversion.

Unquote

You were lucky that the US bank didn't also impose an atm charge of $2 or $3 a time (or maybe that is included in the Lloyds charge).

Sorry, I know this isn't what you want to hear but I think you are wasting your time trying to get a refund.

Try and get a Halifax Clarity credit card for future travels abroad.

It's normally included in the withdrawal amount. E.g. the ATM will report that $204 was withdrawn - meaning the currency charges apply to the fee as well!

PeacefulWaters

tomincognito wrote: »

Just returned from the USA and discovered that using my debit card to withdraw cash whilst abroad quite extortionate.

I looked up the fees before I went.

You're complaining that they charged you what they said they'd charge you.

Don't you think that's a bit ... strange?

Read this and act before you spend overseas. Not after.
http://www.moneysavingexpert.com/travel/cheap-travel-money?_ga=1.179723876.1116300417.1393518509