Lloyds new daily overdraft charges

sourcrates

Locouk2 wrote: »

I was just reading about reclaiming bank charges for going into unplanned overdrafts. Do You think is it worth trying? I was just going through my old statements. For example in 2014 almost every month i was going over my planned overdraft, had returned direct debits - fees only for unplanned o/d were from £45 to £100 a month. Thats pretty a lot. Maybe I should use the template from this site asking them for money back and clear some of my current o/d with it?
Just checked experian to see for which 0 money transfer cards i could apply - none. I have 0% of chance

The boat has sailed on that one unfortunately.

The court of appeal ruled that bank charges cannot be assessed for fairness.

However............

If you can show that these charges caused you financial difficulty, then you can make a written complaint and ask for them back.

Also, if you ask nicely, your bank, as a gesture of goodwill, will refund certain charges at least once a year anyway, so worth trying.

Geoff1963

The trouble with an overdraft, is that it is repayable on demand, so instead of charging ridiculous amounts, they could just ask for it all back. It looks to me as if banks are trying to get out of the overdraft market.

ffsear

I'm in the same boat... I have a £5,000 overdraft, having had to get a new boiler and pipe work install 6 weeks ago.

Current overdraft charges are £63. New Chargers will be £231

I'm going into lloyds on Monday to explain the situation and ask them to freeze the account and charges and agree a monthly payment plan. It either that of leave the account to go into default.

sourcrates

ffsear wrote: »

I'm in the same boat... I have a £5,000 overdraft, having had to get a new boiler and pipe work install 6 weeks ago.

Current overdraft charges are £63. New Chargers will be £231
.

I can see the debt charities workload is set to increase rather soon.

Clearly the banks no longer want to sell us overdrafts, at such high rates of interest, it makes the average person unable to afford one.

ffsear

I'm wondering if this is the first step in Banks attempting to push unsecured loans onto their secured loan books

LexieLou

If they would let us convert the O/Draft charges into a loan it would help...my O/Draft fees increase from £100 to £167 per month...

Makeachange

my halifax overdraft is similar and going to incur similar charges

enthusiasticsaver

I think the banks are wanting to get out of overdraft business. Anyone who has one is best off getting a money transfer card as Rebecca suggests if they are able to. Otherwise do as sourcrates suggests. Open a basic bank account elsewhere (no overdraft) and ask the bank to freeze the interest. If they won't treat it as another debt and reduce it as quickly as possible. Overdrafts are only supposed to be temporary borrowing but unfortunately a lot of people do treat it as a loan that never needs repaying.