LloydsTSB bounced direct debit charges

sportbeth

tinalives wrote:

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

Well from reading up on this, a "Liquidated damage" pretty much amounts to the cost of the direct debit bouncing. This boils down to a computer generated letter that is charged at anywhere between £25 and £35 depending on who you bank with. The actual cost of that damage to the bank is 10p for an envelope, 2p for a sheet of paper and 27p for a stamp. There's no human element of that process at all!

From my point of view I'm not happy to pay for any of the charges they have for me because I sought their help, they didn't advise me to cancel the DD's and then they charged me for it. If I had credit with them I would accept it but I had £100 in my account when the trouble started, the first month that dropped down to something like -£140 so in my mind they owe me!

Somerset

Hello Xbigman

I'm fairly new to this site. I only really started using it to check out the postings re debt/creditcard/loan company dealings.

My partner has the debt problem. He was also the holder of the Lloyds/TSB account I posted about. I coincidentally have a LTSB account but have never been overdrawn/had anything bounce etc so wasn't up to date with 'charges'.

I'm an accountant. First thing ever taught during articles was a bank rec. The bounced d/d's I referred to can easily be seen on his statements going in and out. Helpfully LTSB provide a summary of charges to be debited on xxx date.

Unauthorised Overdraft Fee £ xx
Unauthorised Overdraft Interest £ xx
Unpaid Direct Debit Charges £ xx

Now the d/d's on the statements have been charged and bounced ie effect net. The charges shown above are what the bank charges for itself ( charges in themselves are acceptable ) HOWEVER the unpaid direct debit charges are not number of d/d's bounced times £ 25/£ 35 whatever. They are the total value of the d/d's bounced in the relevant period.

When I started dealing with O/H's finances in May when he 'fessed up' having been threatened with distraint proceedings by the Collector of Taxes. I went through all his paperwork and discovered how deep in the doo-doo he was. I saw these huge monthly unpaid d/d charges but had more urgent things to deal with first, like the I.R.

Now I'm getting round to these bank charges.

Xbigman

Your first post stated he was charged £250 pounds for a bounced DD of £250, was that what you meant to say? Your last post says he was charged a total of 'xxx', which isn't the same. Sorry if it's me getting confused.

Anyway, I do agree banks are charging ridiculous amounts of money for even the smallest infraction of the rules.
Regards




X