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  • FIRST POST
    • MSE Guy
    • By MSE Guy 15th Jun 12, 5:49 PM
    • 1,628Posts
    • 1,255Thanks
    MSE Guy
    MSE News: Lloyds TSB and Bank of Scotland to revamp overdraft charges
    • #1
    • 15th Jun 12, 5:49 PM
    MSE News: Lloyds TSB and Bank of Scotland to revamp overdraft charges 15th Jun 12 at 5:49 PM
    "Lloyds TSB and Bank of Scotland are scrapping some authorised overdraft fees but hiking others in an autumn reshuffle ..."

Page 1
  • MoneySaverLog
    • #2
    • 16th Jun 12, 6:23 AM
    • #2
    • 16th Jun 12, 6:23 AM
    This bits good...

    "Lloyds and BoS will no longer charge customers who are up to 35 overdrawn on their fee-free Classic accounts." as it used to be 10.

    As long as you don't use the OD facility I assume they don't charge for having it available for true emergencies.
    • callum9999
    • By callum9999 16th Jun 12, 9:54 AM
    • 3,950 Posts
    • 2,408 Thanks
    callum9999
    • #3
    • 16th Jun 12, 9:54 AM
    • #3
    • 16th Jun 12, 9:54 AM
    Is this not exactly what the banks should be doing? Helping out those who occasionally slip into the red by a couple of pounds towards the end of the month while discouraging those who use the overdrafts recklessly?

    (I know some people will be in the red just to put food on the table etc. so using the overdraft for that isn't a bad thing for their particular circumstances - but long-term borrowing on an overdraft is reckless).
    • FLAPJACK
    • By FLAPJACK 16th Jun 12, 12:11 PM
    • 509 Posts
    • 376 Thanks
    FLAPJACK
    • #4
    • 16th Jun 12, 12:11 PM
    • #4
    • 16th Jun 12, 12:11 PM
    I take it you still get the "Grace Period" of no charge if you go into O/D but repay it before 3.30pm.
    • tifo
    • By tifo 16th Jun 12, 2:45 PM
    • 1,186 Posts
    • 262 Thanks
    tifo
    • #5
    • 16th Jun 12, 2:45 PM
    • #5
    • 16th Jun 12, 2:45 PM
    I have a classic account which is meant to come with a 10 buffer ... today I got a letter that they've charged me for being 4 overdrawn (which consisted of the 5 overdraft charge and a few pounds interest). The letter said they "couldn't pay the payment you requested". It wasn't really overdrawn because account charges go on at midnight and the BACS payment came in at midnight as well.

    In the past, account charges were not seen as "requested payments" like a direct debit.
  • MoneySaverLog
    • #6
    • 16th Jun 12, 3:13 PM
    • #6
    • 16th Jun 12, 3:13 PM
    I have a classic account which is meant to come with a 10 buffer ... today I got a letter that they've charged me for being 4 overdrawn (which consisted of the 5 overdraft charge and a few pounds interest). The letter said they "couldn't pay the payment you requested". It wasn't really overdrawn because account charges go on at midnight and the BACS payment came in at midnight as well.

    In the past, account charges were not seen as "requested payments" like a direct debit.
    Originally posted by tifo
    Does seem odd, have you called up and asked about the 10 buffer?
    • tifo
    • By tifo 16th Jun 12, 3:40 PM
    • 1,186 Posts
    • 262 Thanks
    tifo
    • #7
    • 16th Jun 12, 3:40 PM
    • #7
    • 16th Jun 12, 3:40 PM
    Does seem odd, have you called up and asked about the 10 buffer?
    Originally posted by MoneySaverLog
    Will do it on Monday at branch ....

    I also have a cash card account which does not work in Halifax machines despite Lloyds saying it does (they changed some months ago) .... they don't know why. If I use it it at Halifax it throws the card out again as "this is not accepted".
    • 10pence
    • By 10pence 18th Jun 12, 2:07 PM
    • 343 Posts
    • 177 Thanks
    10pence
    • #8
    • 18th Jun 12, 2:07 PM
    • #8
    • 18th Jun 12, 2:07 PM
    I work for a well-known High Street Bank Company, and I thought our bank charges were steep - undisclosed buffer of 10 and upto 25 per transaction to no more than 150/per month - however these charges are day-light robbery.

    I've had my privileges for refunding bank charges taken off me because I was refunding too much and have been placed on a performance improvement plan. I fear things will only get worse as banks look to bolster profits to pay for increased legislation.
    • DebtMagnet
    • By DebtMagnet 18th Jun 12, 9:59 PM
    • 209 Posts
    • 104 Thanks
    DebtMagnet
    • #9
    • 18th Jun 12, 9:59 PM
    • #9
    • 18th Jun 12, 9:59 PM
    Does seem odd, have you called up and asked about the 10 buffer?
    Originally posted by MoneySaverLog
    Having wasted hours today trying to get them to explain why the 10 buffer isn't always available (even though it is advertised that it is part of the account) I have given up. I have had several different 'stories' from them and even had someone in the branch telling me that they don't make the 10 buffer zone public, to which I asked them for a copy of their banking terms leaflet and pointed out the wording in plain black and white!!

    The bottom line (from what I have learned) is that the 10 buffer zone is there if it suits Lloyds for you to use it. If they see a way to charge you some cash then they seem to be allowed to opt out of giving it to you.

    I'm currently looking to switch from Lloyds and reading this news item has just given me a further incentive to get on with it!
    • tifo
    • By tifo 19th Jun 12, 8:15 AM
    • 1,186 Posts
    • 262 Thanks
    tifo
    The bottom line (from what I have learned) is that the 10 buffer zone is there if it suits Lloyds for you to use it. If they see a way to charge you some cash then they seem to be allowed to opt out of giving it to you.
    Originally posted by DebtMagnet
    Isn't that misleading and a breach of their terms?
    • Paul38
    • By Paul38 21st Jun 12, 3:56 PM
    • 25 Posts
    • 49 Thanks
    Paul38
    In response to an earlier poster who has been charged for going overdrawn with a Direct Debit. I had the same problem last month and like you it was a bit of a shock as I was always led to believe the 10 buffer applied regardless of what caused the overdraft.

    Do you have online banking? If you do, have a look to see if they let the Direct Debit go through. On mine it showed that they had paid the Direct Debit then later in the day rejected it. I phoned up and argued that they paid it then withdrew it and clearly they were doing this to make money out of the situation. And I mentioned that I thought that this situation was why the buffer existed. They will say that it dont apply to Direct Debits but all you have to say is: "And where is this stated? The leaflet I got never made that clear." And they normally reimburse it.

    Good luck.

    Oh and if you are using the 0845 number, try (01733) 347007 much cheaper
    Last edited by Paul38; 21-06-2012 at 3:57 PM. Reason: mis-spelling
  • MME
    On mine it showed that they had paid the Direct Debit then later in the day rejected it. I phoned up and argued that they paid it then withdrew it and clearly they were doing this to make money out of the situation.
    Originally posted by Paul38
    Or...clearly direct debits get paid first thing in a morning and you have until 15:30 the same day to get sufficient funds in your account to pay it. If you don't by 15:30 the direct debit gets returned. So perhaps have enough money in your account to pay your direct debit(s) or don't have it in the first place?
    • Paul38
    • By Paul38 24th Jun 12, 4:42 PM
    • 25 Posts
    • 49 Thanks
    Paul38
    Er....I got the charge refunded! As it was done before 3.30 AND they have never made it clear that the buffer doesn't apply to Direct Debits and to be honest if it doesn't apply to Direct Debits then why did the system allow it to be paid/

    The important point here is....I got the charge refunded
    • tifo
    • By tifo 24th Jun 12, 5:56 PM
    • 1,186 Posts
    • 262 Thanks
    tifo
    Er....I got the charge refunded! As it was done before 3.30 AND they have never made it clear that the buffer doesn't apply to Direct Debits and to be honest if it doesn't apply to Direct Debits then why did the system allow it to be paid/

    The important point here is....I got the charge refunded
    Originally posted by Paul38
    Not really, you paid before 3.30 which they allow so there was never a return charge applied.
  • digi-ghost
    One thing that's not mentioned in the article is the 5 that I get charged just for the privilege of using my authorised overdraft, in addition to any interest. In effect, if I go above the free overdraft into my authorised additional arrangement, I get charged 5, as well as any interest charged on that additional amount...
    • pixwix
    • By pixwix 15th Nov 12, 8:58 PM
    • 120 Posts
    • 188 Thanks
    pixwix
    I'd rather keep my money under the mattress...
    I didn't normally bank with Lloyds. But when the wife's father died, we took out a Lloyd's account to keep matters separate from our normal banking until such time as we got the estate sorted out. For various reasons that took a year. Bad enough that Lloyds seemed to go out of their way to be unhelpful at every step, but they heaped charge upon charge at every excuse and opportunity. For an entire year we asked every few weeks for regular printed statements. They were promised again and again but never ever arrived - not one statement in that whole year. A regular excuse was that we'd 'ticked the website box for online statements.' A bit rich as we'd never asked for or had an online facility with that account. Another was that we could get a statement at any ATM (not even minimally true.)

    The crunch came when we strayed into the red when allocating moneys to various family claimants - they told us (by snail mail despite having our home and mobile numbers) we were 20 over the mark and they'd be charging 5 a day until it was sorted. My plea that we might not have been in the red if they'd just provided the printed statements we'd repeatedly asked for, was ignored. Pay up or else - they weren't even polite.

    We did pay up - and cancelled the account - which seemed to mystify Lloyds no end. Couldn't be anything they'd done, they were sure.

    As I said in the title, I'd keep money under a mattress before I'd ever bank with that grasping incompetent bank again.
    • Hominu
    • By Hominu 15th Nov 12, 9:17 PM
    • 1,651 Posts
    • 868 Thanks
    Hominu
    Another was that we could get a statement at any ATM (not even minimally true.)
    Originally posted by pixwix
    To be true, you could have used an ATM each week to request a statement to see what the balance on the account was and the last so many transactions. If you wanted a full printed statement every week they can do this for you inside, but it'll cost.

    The crunch came when we strayed into the red when allocating moneys to various family claimants - they told us (by snail mail despite having our home and mobile numbers)
    Originally posted by pixwix
    For good reason - they don't have time to check each and everyone's account and phone them if they become overdrawn. Letters are sent out automatically. Even if they did, they couldn't say much without taking you through security and you wouldn't want that without knowing it was an authentic call. A letter is far easier for everyone.
  • opinions4u
    I didn't normally bank with Lloyds. But when the wife's father died, we took out a Lloyd's account to keep matters separate from our normal banking until such time as we got the estate sorted out. For various reasons that took a year. Bad enough that Lloyds seemed to go out of their way to be unhelpful at every step, but they heaped charge upon charge at every excuse and opportunity. For an entire year we asked every few weeks for regular printed statements. They were promised again and again but never ever arrived - not one statement in that whole year. A regular excuse was that we'd 'ticked the website box for online statements.' A bit rich as we'd never asked for or had an online facility with that account. Another was that we could get a statement at any ATM (not even minimally true.)

    The crunch came when we strayed into the red when allocating moneys to various family claimants - they told us (by snail mail despite having our home and mobile numbers) we were 20 over the mark and they'd be charging 5 a day until it was sorted. My plea that we might not have been in the red if they'd just provided the printed statements we'd repeatedly asked for, was ignored. Pay up or else - they weren't even polite.

    We did pay up - and cancelled the account - which seemed to mystify Lloyds no end. Couldn't be anything they'd done, they were sure.

    As I said in the title, I'd keep money under a mattress before I'd ever bank with that grasping incompetent bank again.
    Originally posted by pixwix
    So, in summary, they messed up the statement request.

    You messed up managing the money in the account.
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