Lloyds Basic Bank account & overdraft

leon_panda

Hello

I have a Lloyds Basic bank account, with a Visa Debit card which isn't contactless.
I'm planning to move my debit card to Curve, due the cashback scheme.
My question is, I don't wanna use an Overdraft, but I also don't wanna get overdrawn for using money I don't have in my account.
With a Lloyds Basic bank account, is it possible to have -£?
Or the transaction gets declines straight away?

Many thanks

Dobbibill

Google is your friend......

taken from here https://www.lloydsbank.com/assets/images/current_accounts/basicaccount_welcomepack.pdf

Overdrafts
There is no Planned Overdraft on this account. It’s important that you always keep your account in credit, with enough money to cover cash withdrawals and payments out.
You could go into an Unplanned Overdraft, but there are no charges if you do.

Anthorn

leon_panda wrote: »

Hello

I have a Lloyds Basic bank account, with a Visa Debit card which isn't contactless.
I'm planning to move my debit card to Curve, due the cashback scheme.
My question is, I don't wanna use an Overdraft, but I also don't wanna get overdrawn for using money I don't have in my account.
With a Lloyds Basic bank account, is it possible to have -£?
Or the transaction gets declines straight away?

Many thanks

Yes it is possible to go overdrawn with any basic account in the banks in Lloyds Banking Group involving hefty fees. Overall, there is only one reason why accounts have a fees table and that's because they charge fees. Check out the T&Cs
https://www.theguardian.com/business/2016/dec/12/lloyds-banking-group-fails-to-meet-fee-free-basic-account-guidelines-treasury

I know of only one basic bank account which pledges no fees and that's Virgin Money Essential Current Account:
http://uk.virginmoney.com/virgin/current-account/essential-current-account.jsp

System

Anthorn wrote: »

Yes it is possible to go overdrawn with any basic account in the banks in Lloyds Banking Group involving hefty fees. Overall, there is only one reason why accounts have a fees table and that's because they charge fees. Check out the T&Cs
https://www.theguardian.com/business/2016/dec/12/lloyds-banking-group-fails-to-meet-fee-free-basic-account-guidelines-treasury

I know of only one basic bank account which pledges no fees and that's Virgin Money Essential Current Account:
http://uk.virginmoney.com/virgin/current-account/essential-current-account.jsp

You spout rubbish about basic bank accounts on a regular basis.

If you actually bother to read the article you quote, you'll see it relates to people with historic basic accounts, not the current variety.

Anthorn

Heng_Leng wrote: »

You spout rubbish about basic bank accounts on a regular basis.

If you actually bother to read the article you quote, you'll see it relates to people with historic basic accounts, not the current variety.

Not true: The article I linked to was published Monday 12 December 2016 19.32 GMT and the overall tone of the article is present tense and not past tense. It refers to a failure to keep to the agreement between the banks and the government set out in 2014.

But in any case my advice was was to check out the T&Cs of basic bank accounts to see if there are fees.

I realise that it must be difficult for you but do try to keep up!

KJSmith

Anthorn wrote: »

Not true: The article I linked to was published Monday 12 December 2016 19.32 GMT and the overall tone of the article is present tense and not past tense. It refers to a failure to keep to the agreement between the banks and the government set out in 2014.

But in any case my advice was was to check out the T&Cs of basic bank accounts to see if there are fees.

I realise that it must be difficult for you but do try to keep up!

Yes it is true.

The article was published in December but relates to legacy basic accounts which are no longer available to new customers. These legacy basic accounts carried returned item fees for unpaid Direct Debits and standing orders. The voluntary 2014 agreement stated that starting in 2016 any new basic accounts opened from that point would be fee-free.

Lloyds Banking Group has complied with this by way of their new Basic Accounts. They also wrote to owners of these legacy basic accounts and gave them the opportunity to change to the new Basic Account. Some of these legacy basic accounts contained features like cashback so it was right to give these customers an informed choice. As opposed to just switching them to the new Basic Account and losing out on such benefits - which is what the article is suggesting should be done.

SnowTiger

Anthorn wrote: »

Yes it is possible to go overdrawn with any basic account in the banks in Lloyds Banking Group involving hefty fees. Overall, there is only one reason why accounts have a fees table and that's because they charge fees. Check out the T&Cs
https://www.theguardian.com/business/2016/dec/12/lloyds-banking-group-fails-to-meet-fee-free-basic-account-guidelines-treasury

I know of only one basic bank account which pledges no fees and that's Virgin Money Essential Current Account:
http://uk.virginmoney.com/virgin/current-account/essential-current-account.jsp

T&Cs say otherwise about "hefty fees".

https://www.lloydsbank.com/assets/images/current_accounts/basicaccount_welcomepack.pdf:

Overdrafts

There is no Planned Overdraft on this account.

It’s important that you always keep your account in credit, with enough money to cover cash withdrawals and payments out. You could go into an Unplanned Overdraft, but there are no charges if you do

SnowTiger

Anthorn wrote: »

Not true: The article I linked to was published Monday 12 December 2016 19.32 GMT and the overall tone of the article is present tense and not past tense. It refers to a failure to keep to the agreement between the banks and the government set out in 2014.

But in any case my advice was was to check out the T&Cs of basic bank accounts to see if there are fees.

I realise that it must be difficult for you but do try to keep up!

The article pictures a Halifax logo and refers to Halifax's Easycash account, which is a legacy basic-like bank account.

Anthorn

SnowTiger wrote: »

The article pictures a Halifax logo and refers to Halifax's Easycash account, which is a legacy basic-like bank account.

Perhaps you should read the article and not just look at the pictures. However I have neither the time nor the inclination to provide a simple precis to enable you to understand it. This is not a forum for children where such things may ne needed.

Both the article and my post arere related to Lloyds Banking Group. The Halifax Easycash account is mentioned as an example of "one of the accounts affected:

It is understood one of the accounts affected is the Halifax Easycash account, where a customer can be hit with up to three £10 “returned item fees”a day in cases in which there is not enough money in the account to make a payment but and the bank refuses to allow them to go into the red.

https://www.theguardian.com/business/2016/dec/12/lloyds-banking-group-fails-to-meet-fee-free-basic-account-guidelines-treasury

To be fair though, the Halifax lists the Easycash account under its Basic Account tab:
https://www.halifax.co.uk/bankaccounts/current-accounts/basic-account/

Further, the Easycash account is listed by several directories as a basic account, for example
http://www.ukbankaccounts.co.uk/halifax-easycash-basic-bank-account/

Whether the Easycash is a legacy account or not is not the point and that definition does in fact conflict with available information.

SnowTiger

Anthorn wrote: »

Perhaps you should read the article and not just look at the pictures. However I have neither the time nor the inclination to provide a simple precis to enable you to understand it. This is not a forum for children where such things may ne needed.

Both the article and my post arere related to Lloyds Banking Group.

OP asked:

With a Lloyds Basic bank account, is it possible to have -£?

Your response was:

Yes it is possible to go overdrawn with any basic account in the banks in Lloyds Banking Group involving hefty fees.

This is what Lloyds says about it:

Overdrafts

There is no Planned Overdraft on this account.

It’s important that you always keep your account in credit, with enough money to cover cash withdrawals and payments out. You could go into an Unplanned Overdraft, but there are no charges if you do.

Your assertion that "Yes it is possible to go overdrawn with any basic account in the banks in Lloyds Banking Group involving hefty fees" is clearly wrong.

There aren't even any hefty fees for going overdrawn on a Halifax Basic account:

Free everyday banking – You don’t have to pay monthly fees, or charges if you accidentally go overdrawn.

Halifax EasyCash is an old account that offers basic banking facilities. It existed many years before the banks agreed with the government to create what are now referred to a basic bank accounts.

JuicyJesus

You can technically go overdrawn on any bank account. Pay in a cheque and draw against it before it's fully cleared, have it bounce.

Nothing can ever be 100% but BBAs are as close as you can get.