LloydsTSB bounced direct debit charges

Somerset

My partner has debt problems which he is trying to sort out. This question is curiousity value only. He used to bank with LloysTSB. When there weren't sufficient funds in the account to pay a direct debit taken by a credit card, it was obviously bounced, but LTSB at the end of the month would charge this amount as a 'unpaid direct debit fee'. So if a £ 250.00 d/d to Egg credit card was refused by LTSB, they would charge him an identical amount ie £ 250.00 for this happening. This just seems astronomical to me. Is it right ??? Thanks in advance for any replies.

grumbler

Somerset wrote:

So if a £ 250.00 d/d to Egg credit card was refused by LTSB, they would charge him an identical amount ie £ 250.00 for this happening. This just seems astronomical to me. Is it right ???

No, it is not.

http://www.lloydstsb.com/rates_and_charges/current_account_charges.asp :

Returned item fee
You'll be charged this fee whenever there is not enough money in your account to make a payment, such as direct debit, cheque or standing order.
Charges: £35

Somerset

Thanks grumbler

Thought is couldn't be right. But seriously, that's what they've done. I've seen his statements going back 6 to 8 months so it's been going on at least that long. Trouble was, he was in a debt spiral and was almost scared to question anything.

mattp_3

Lloyds TSB are notorious for their heavy charges, but that is the most ridiculous thing I have heard!

You should contact the Banking Ombudsman so that they can look into it.

Jolinar

The charges are so high because they will keep presenting the DD and Lloyds keep bouncing it so the £35 add up. This kept happening to my OH and they would swipe the fees at the end of the month when he got paid. Sometimes he wouldn't even know about it until the money went out as they didn't bother sending him any letters. Now he's got a basic bank account where this will not happen so he's much better off!

tinalives

I'm sick of banks - Alliance & Leicester gave me an account with no overdraft yet allowed a transaction that was entered accidentally to go through even though the money wasn't there - whereby if the system had allerted me that there were insufficient funds I would have immediately realised that I was supposed to be transferring money FROM my savings account and not TO it. Ended up costing me £50 and when I explained the situation I was told that I should be grateful as they could have charged me over £100.

sportbeth

look at https://www.bankchargeshell.co.uk.

I'm in a 6 month wrangle with the Woolwich. When me employer couldn't pay me I went to them for help as in the form of a temporary overdraft. They declined me and I was in such a state that I didn't cancel any of my Direct Debits. (and when I asked them what to do about them the telephone banking person told me they couldn't help me)

They then slapped £450 in charges onto my account in bounced DD fees. And when I argued they said I should have just cancelled my direct debits to save the fees.

I wouldn't mind but I didn't even have any credit with them!

They've got some slimey debt collection company onto me and have offered to half the amount so far (which now stands at over £600 including debt collectors fees and interest.) I have told them to keep thinking and said if I have to pay I will take them to court to gain back the fees and to get them answering to libel charges for my damaged credit rating.

Somerset

Thanks everyone. This goes on to my ' list to do ' things for him. Currently dealing with the Inland Revenue ( solution in sight ) credit cards/loans ( longer haul thing ). This will be ' dealt with ' maybe in a couple of weeks.

You know, I'm probably a control freak about money so O/H's situation has amazed me. One - that he didn't spot it/query it and two, that he ran around like a headless chicken, having handed over control of his current account ( via d/d's ) and just 'reacted' to problems.

Sorry about the rant - I love him, we are just very different people on the money front.

However is it just coincidence that a 'dodgy' account ( he was obviously having money problems ) gets hit by incorrect excessive charges ??? I wonder how often banks make mistakes in their clients favour ?

tinalives

Hi Sportbeth,

Thanks for the link, that's very interesting to know. I know it says that if the charges amount to more that the banks liquidated damages then it's not enforceable and you would most likely win if taking it to court, but how do you know whether your charges are more than the banks liquidated charges I wonder?

If I was sure, I for one would definitely get the court papers sent because I'm sick to the back teeth of banks taking advantage of people already in a difficult situation.

x

Turning_into_scrooge

LloydsTsb did exactly the same to me. I am now paying off a £600 overdraft due to their bank charges and of course my bounced DD. If they had been a little lenient at the start of the bounced DD i probably woudn't be on a DMP now only is has a knock on effect on where your payment are going. I had an overdaraft of £50 which was enough. Long story but i had a major !!!! up through LloydsTsb off shore account which caused the bounced DD but in true Lloydstsb style they never accept responsibillity so i now pay them off at £9 a month, interest frozen. i'm glad i got out when i did. I'm sorry but i really can't find one good thing to say about LloydsTsb, they used to be named Noddys Toy Town Bank. Says it all really. Good luck with it, i hope you manage to get somewhere with them

Edit: I now have an absolutely diabolical credit rating which tbh i'm not worried about but LTB refused the DMP initianilly so they could repeatedly offer me more debt with them to pay off my other creditors which i would of been paying off when im more than likely dead!! CCCS sorted them out, i wasn't the only one to complain to them about LTB tactics on this

(please excuse my spelling, i'm on a disabillity confused day today)

Xbigman

The OP is incorrect. We have slipped into talking about high bank charges, although a worthy subject it is not what this thread is about.

You say Lloyds bounced a £250 DD and then charged you £250. This is what really happened.

1. Lloyds paid a £250 DD, so on your statement it says £250 spent.
2. They realize its not there so they charge you £25 for bouncing a DD.
3. They now take back the transfer that has only happened on paper, so the statement says -£250.
4. Total cost so far (from Lloyds) £25.

I once had a friend in work who this happened to trying to tell me how clever he was because Lloyds were giving him money and paying DD's for him. He didn't realize what was happening and his bills weren't being paid. When I told him he was !!!!!! with *me*and is to this day an ex friend. Ho hum.
Regards



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