Unauthorised Overdraft Charges, LloydsTSB

Dylanwing

I regularly read 'Shock Horror' posts about the high APR's on Payday loans, but if you compare this to the outrageous fees charged on overdrafts, they are not that bad. How about Banks being forced to provide an APR for all of the charges on an unauthorised overdraft? It would make shocking reading, and would certainly make the so-called sharks look reasonable.
I freely admit to occasionally using The money Shop. £14 for a £100 loan is not cheap, but an awful lot less expensive than paying Bank charges. As I'm sure somebody (Ejones?) will point out, managing my money better is a lot cheaper, but hey, that's another story.

dunstonh

Welcome to the consequences of all those people claiming back "unfair" charges.

The new charging method is structured so that it cannot be classed as a penalty fee but a service fee.

If the court case for charges rules in favour of us will I be able to dispute these charges as I have done before they changed their overdraft terms?

Unlikely to get anywhere as the charges are now packaged differently and are a charge for a facility and service rather than a penalty.

£25.00 is obviously a "disproportionate" sum.Admin fees are no more than a fiver.

Doesn't matter too much what you think. Admin fees, service fees and retail fees don't have to be proportionate to the level of work. You are no longer paying for work done but a product and service.

System

dunstonh wrote: »

Welcome to the consequences of all those people claiming back "unfair" charges.

The new charging method is structured so that it cannot be classed as a penalty fee but a service fee.



Unlikely to get anywhere as the charges are now packaged differently and are a charge for a facility and service rather than a penalty.



Doesn't matter too much what you think. Admin fees, service fees and retail fees don't have to be proportionate to the level of work. You are no longer paying for work done but a product and service.

Sorry if I'm missing something, but what are the consequences you talk of?

It doesn't matter what the banks call the charges, they are still penalties. The re-wording of T's & C's is simply an attempt to disguise the charges as something they are not - otherwise why would the T's & C's need to be changed at all?

UNDERGROUND

dunstonh

Sorry if I'm missing something, but what are the consequences you talk of?

More people are going to pay for banking services.

It doesn't matter what the banks call the charges, they are still penalties.

They are no longer penalty charges. They are becoming charges for provision of a facility of extra emergency borrowing above limit.

YorkshireBoy

UNDERGROUND wrote: »

Sorry if I'm missing something, but what are the consequences you talk of?

I think 'caver' provides the answer in his/her post #6 when s/he says "the old charges they adopted would be more cheaper than this". The bank is going to maintain it's profit levels, but more people will share the burden of delivering this - rather than just the few that did before the revamp. It seems to me that those who manage their accounts within the T&C's will continue to enjoy free banking.

It doesn't matter what the banks call the charges, they are still penalties. The re-wording of T's & C's is simply an attempt to disguise the charges as something they are not - otherwise why would the T's & C's need to be changed at all?

Perhaps they're erring on the side of caution. They may be hoping that by making the charges more 'transparent', which was after all the OFT's initial gripe, they're at least protected going forward...even though they may be forced to refund all pre-2008 charges (going back 6 years) in full if they are unsuccessful in next year's court case?

System

dunstonh wrote: »

More people are going to pay for banking services.

Sorry, that's me not reading the thread properly!

dunstonh wrote: »

They are no longer penalty charges. They are becoming charges for provision of a facility of extra emergency borrowing above limit.

So they were previously penalty charges then?

UNDERGROUND

johnwilman

No problem Ray.. I will happily give credit where credits' due to banks or anyone else..:D ,but It's nice to be treated as a customer rather than a profit booster for the bank..:eek: I will happily wish my bank a Merry Xmas and tell them that my Xmas card is in the post..:xmassign: ,or will it be a bahhhhh humbugggggg year??:laugh:

RayWolfe

touché
Happy Christmas
Ray