Lloyds TSB charged me for returned payment

hustle90

I have an under 19's account (I'm 17) with Lloyds TSB that I use as my main bank account. I switched from Barclays 5 months ago.

Last week, I issued a refund via PayPal for an item that went missing, which was £230. I had planned on transfering money from my savings account (Another bank) to my Lloyds current account to cover the payment, however the payment came out 2 days later when I was expecting it to be 5/7 days as paypal states.

This took me £120 overdrawn as I already had £110 in the account, so Lloyds returned the payment to PayPal and i've just received a letter from lloyds today telling me the payment was returned and they're charging me a fee.

I just phoned them to ask what the fee was and they said its £20.

This has happened a few times before when I was with Barclays and they never charged me a fee. I also didn't think there was any fees incured for the under 19's account.

Does anyone know if I can get out paying this £20 return fee.

Thanks

ShelfStacker_3

The £20 fee for a returned payment is probably the lesser of two evils; if Lloyds had allowed the payment to go through, you'd have been charged £15 plus around £6 a day for every day you were overdrawn, plus interest.

What you should do is wait for your £230 to appear then retry the PayPal payment. If it's your first time incurring this fee, call up LTSB and they might waive it, but other than that there's little else you can do. I remember hearing that under 18s can't be charged unauthorised o/d fees, but I'm not sure if that applies to returned payment fees.

hustle90

I have been in an unauthorised overdraft a few times and they do not charge fees for this when you have an under 19's account.
I might write a letter to Lloyds explaining what happened and could they wave the charge.

ShelfStacker_3

Ask on telephone banking first, they could waive it there and then.

hustle90

I phoned PhoneBank and was told to send a letter to my branch.

Is it best to be kind and sweet in the letter e.g I'm a college student with a low income and saving for University. £20 is a lot to a full time college student etc or to be threatening e.g I have been with barclays before and never had this problem and I am not happy with your service and will change bank accounts if this is not sorted....

I think the sweet and kind letter may be better?. Sorry, i've never wrote to a bank before.

hustle90

Just phoned back the number on the letter and was told that they would wave the charge if it was my first time. When he looked at my account, he saw that I was overdrawn a few weeks ago with an unplanned overdraft and as a result, he would not wave the charge, I asked him if I should send a letter and he told me it was not worth it for £20. I said £20 may not be a lot to you but it is to a college student (In a rude voice) then told him i'd send a letter anyway.

Ugh. Barclays never charged me for anything like this.

CLAPTON

you say you have been into an unauthorised OD a few times as well as this payment bouncing....
I would in the nicest possible way suggest you revise you attitude to banking and start to stick rigidly to the rules and always leave a little float so you dont go over by accident.
Otherwise in a fairly short time your credit record will look very unpleasant and you may well have trouble obtaining credit or best deals once you're over 18.

Scousebird_2

You are under 18-where in the terms and conditions of your account does it state that you are allowed to go into any lending facility and be charged-you are under 18 and are therefore not legally allowed to enter into a contract of agreement (thus agreeing to any form of borrowing/credit etc). I would put a complaint into Lloyds TSB in writing politely highlighting your age and they should realise and reverse the charge.

ShelfStacker_3

CLAPTON wrote: »

you say you have been into an unauthorised OD a few times as well as this payment bouncing....
I would in the nicest possible way suggest you revise you attitude to banking and start to stick rigidly to the rules and always leave a little float so you dont go over by accident.

Well put. Just because they don't charge you for an unauthorised O/D doesn't mean they're happy about it.

hustle90

Thank you for your advice everyone. Yes, I know I shouldn't be going into an unauthorized overdraft. I've sent a polite letter to Lloyds advising them of my situation and if they don't waver the fee, then I'll pay it and learn by my mistakes.

bengal-stripe

hustle90 wrote: »

Yes, I know I shouldn't be going into an unauthorized overdraft. I've sent a polite letter to Lloyds advising them of my situation and if they don't waver the fee, then I'll pay it and learn by my mistakes.

So, you deal on eBay and you have a paypal account, but you are not eighteen yet.
I’m sure you know, that you can’t hold either account, being under age. You must have lied about your age.
And with your bank you rely on being let off, because your under age. Having one's cake and eating it.

Shall we call your attitude to proper business etiquette…………..somewhat cavalier?