Overdraft fees taken daily

Ldoobs

I have an overdraft with Lloyds who charge a daily fee when in the overdraft. This in itself is fine however they take the charge on a daily basis thus increasing the amount into the overdraft I am and taking it day after day. Surely this isn't right and the charge should be calculated over the month and taken the following month. Is it right what they are doing or has there been a mistake. Any advice appreciated

Willing2Learn

Hi and welcome to the forum

According to Lloyds:

One daily arranged overdraft fee
You’ll pay a daily arranged overdraft fee over your fee-free amount (if your account has one). The daily arranged overdraft fee is 1p for every full £6 you borrow up to £1250, 1p for every further full £7 you borrow between £1250 and £2500, and then a further 1p for every full £8 you borrow over £2500.

Daily charging
If you do need to use your Arranged Overdraft, you’ll pay a daily arranged overdraft fee at the end of each day making it easier to keep track of what’s going out.

If you use your arranged overdraft but pay it back before midnight the same day, then you won’t pay an arranged overdraft fee for that day.

Are you struggling to pay the fees? Maybe you would fall within 'Financial Hardship' criteria as described in the following article:
https://www.moneysavingexpert.com/reclaim/bank-charges/

Ldoobs

Thankyou for that. The fees aren't a problem just wanted to make sure I wasn't being ripped off ��

enthusiasticsaver

Overdrafts are an incredibly expensive way of borrowing. Lloyds are charging in accordance with their T and C but if the fees aren't a problem that indicates you could pay the overdraft off which would be the best scenario all round. Visit the DFW forum if you are struggling.