New Lloyds Account - Don't make this mistake

AltruisticPie1544

Today I opened a new Club Lloyds account as a brand new LLoyds customer (never banked with them before). I was obviously attracted by their new account switch offer.

After getting the account opened and getting myself registered for online banking, I decided I would do a small test payment to send money in from one of my other accounts. So I sent £1, and it arrived quickly. Cool, no issues receiving money.

Since Club Lloyds has a £5 fee, unless depositing £2000/month I decided to send another payment in for £2000 from the same account. Again, the money arrives quickly and everything seems great.

I wanted to make sure I can send money out too, so with my new found confidence I decide to send out a small £1 payment to another one of my accounts. I wouldn't want to immediately send out a large payment in case of issues, and was actually intending to keep the £2000 sitting there for a couple of days anyway. Disaster...the £1 payment out is held and I get a message to call their fraud team to confirm it's genuine. I thought it would be a quick call, confirm some details and they would process the payment. But I was wrong. After keying in my security details in the automated phone system, I'm put through to a real person to explain the issue. They don't ask me any questions, just take a few moments to review the account/payment, then come back and tell me I need to go to a branch with photo ID to verify my details. When I got off the phone I discovered they had also suspended my online banking and I've got no way to access my account while my £2k is stuck there.

Now I need to take extra time out of my weekend to visit the local town centre, pay for parking, go into a branch and try to sort out this mess.

QrizB

Yes, this happens. Not just Lloyds.

Sending small transactions, followed by larger ones, triggers their fraud prevention systems as it's supposedly what fraudsters do.

AltruisticPie1544

QrizB said:

Yes, this happens. Not just Lloyds.

Sending small transactions, followed by larger ones, triggers their fraud prevention systems as it's supposedly what fraudsters do.

Yes, perhaps. But you'd think they could make an exception for a payment going to the same name. And what's the point in having all that fancy new app based verification tech, forcing me to taking a selfie and scan my passport during sign up but not using it to prove I'm the account owner.

grumpy_codger

QrizB said:

Yes, this happens. Not just Lloyds.

Lloyds fraud department is notoriously paranoid and likes sending customers to a branch without any good reason. My OH received £75 (or £100?) compensation after complaining.

pecunianonolet

https://www.reddit.com/r/beermoneyuk/comments/1q8enzz/new_lloyds_account_dont_make_this_mistake/

Theleak250

Too much too soon. I think a lot of people send one small payment to make sure it arrives, then the full payment. But to then send it to another third account, yes it’s very risky. But no harm done, once you show your ID the issue should be resolved.

masonic

Yes, in my experience it's a third payment in quick succession that tends to trip the fraud detection systems. I think allowances have been built in for the extremely common £1 followed by a larger payment. Though now we have COP matching, I tend only to do this when I can't get a match.

grumpy_codger

masonic said:

...Though now we have COP matching, I tend only to do this when I can't get a match.

It would be nice if Lloyds' system allowed payee description. However, Lloyds is one of few banks that don't have this option. So if a payee has more than one bank account you have to add the description to the payee name that to some degree compromises COP. The degree depends on the bank's implementation of COP.

Theleak250 said:

...But no harm done, once you show your ID the issue should be resolved.

No harm IF

• you have a branch nearby
• you don't work 

Otherwise you have to waste your time and/or money on traveling and possibly will have your Saturday ruined. I understand that sometines it's really necassary, but their fraud department use this option far too exessively, not to say carelessly abuse it.
It's 21st century now, branches get more and more scarce, video calls are easily available .... 

masonic

grumpy_codger said:

masonic said:

...Though now we have COP matching, I tend only to do this when I can't get a match.

It would be nice if Lloyds' system allowed payee description. However, Lloyds is one of few banks that don't have this option. So if a payee has more than one bank account you have to add the description to the payee name that to some degree compromises COP. The degree depends on the banks implementation of COP.

Yes, indeed. Being able to set an account nickname is an absolute must for me to use as a main account. I am happy to hold accounts with banks that do not as a gateway to other products or for perks, where I would only need to set up 1-2 other current account payees in my name and can use the reference field. But it would be no good to feed my 20+ regular savers where the reference field is often required for account matching. Some banks (and I can't recall if Lloyds group is among them) allow you to edit the name after getting a match, which largely resolves this issue.

HillStreetBlues

masonic said:

grumpy_codger said:

masonic said:

...Though now we have COP matching, I tend only to do this when I can't get a match.

It would be nice if Lloyds' system allowed payee description. However, Lloyds is one of few banks that don't have this option. So if a payee has more than one bank account you have to add the description to the payee name that to some degree compromises COP. The degree depends on the banks implementation of COP.

Yes, indeed. Being able to set an account nickname is an absolute must for me to use as a main account. I am happy to hold accounts with banks that do not as a gateway to other products or for perks, where I would only need to set up 1-2 other current account payees in my name and can use the reference field. But it would be no good to feed my 20+ regular savers where the reference field is often required for account matching. Some banks (and I can't recall if Lloyds group is among them) allow you to edit the name after getting a match, which largely resolves this issue.

Lloyds don't as the only options you get is "make payment" or delete.

SevenOfNine

First we saw of this 'new' checking was last month, after YEARS of banking with Lloyds & shifting money in/out the account, 'linked' to double figures of assorted savings, to there's been 'through traffic' unhindered many, many times.

Until last month! £30k passing through, followed a few days later by £7k passing through, the latter being 'suspended'. Number to call went straight to fraud dept.  20 'security questions' later & transaction was released straight away.

Most others that have reported this in other threads have said they were told to present themselves to the bank. There seems to be activity/fines regarding money laundering, so perhaps banks are tightening up their 'checking procedures?