Bit shocked by Lloyds

Just wanted to let everyone be aware. I had a text from the bank today stating that money had been taken out of my savings account and paid into a current account which was overdrawn ( by £4).

I know banks can do this but I have a savings account for everyday use. It can't go overdrawn, can't have direct debits, or standing orders and only has a cash card. If there is £100 in there I'm confident in a weeks time there will be £100 in there.

I feel out of control now. I could have been somewhere needing petrol only to find what I thought was in the account wasn't.

I know this is my fault, I just wanted to let everyone know so you don't get caught out. From now on I will be taking cash out and keeping it at home.
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Comments

  • National_Debtline
    National_Debtline Posts: 7,998
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    Hi Fireflyaway


    Thanks for sharing this. It does also show why it is so important for others with unaffordable debts to bank somewhere they don't owe money.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • I didn't realised that saving accounts can go overdrawn. Thank you for the share
  • Fireflyaway
    Fireflyaway Posts: 2,766
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    I didn't realised that saving accounts can go overdrawn. Thank you for the share

    Hiya no my savings account didn't go overdrawn, my current account did but Lloyd's helped themselves to my savings to pay it back.

    If you are experiencing debt, definitely go to another bank so all your income is safe.
  • marliepanda
    marliepanda Posts: 7,186 Forumite
    Hiya no my savings account didn't go overdrawn, my current account did but Lloyd's helped themselves to my savings to pay it back.

    If you are experiencing debt, definitely go to another bank so all your income is safe.

    I imagine in Lloyds eyes you 'helped yourself' to £4 of their money by going over your overdraft limit, so they took it back from money you held with them.

    Im sure thats preferable to a fee for going into it?
  • Fireflyaway
    Fireflyaway Posts: 2,766
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    I don't mind paying it back / being charged or whatever. That's standard. Its the fact it was taken from an account where I was counting on every penny being there and with no warning. I literally could have been stuck with no money for petrol.
  • marliepanda
    marliepanda Posts: 7,186 Forumite
    I don't mind paying it back / being charged or whatever. That's standard. Its the fact it was taken from an account where I was counting on every penny being there and with no warning. I literally could have been stuck with no money for petrol.

    I see what you're saying but at some point you must have spent £4 more than what your other account has, so really you just need to pay closer attention to all your accounts to make sure you have money for petrol?

    Also, I obviously don't know for certain but I imagine it is in the terms of your account somewhere that they can do this. I know nobody ever reads the massive terms and conditions, but you should (no i dont either...)
  • Was the overdraft unauthorised? I am assuming it was and this is preferable to having a £20 fee for unauthorised overdraft. I think banks have always had these powers. When I used to work in a bank about 20 years ago it was common for bank officials to transfer money from savings accounts to current accounts when they went overdrawn. They had to tell the account holder though. It is probably in the terms and conditions somewhere.

    Keep your savings in a different bank to the one you have your current account but I would always leave a buffer in your current account anyway to stop going overdrawn due to miscalculations or whatever.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • Fireflyaway
    Fireflyaway Posts: 2,766
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    It was unauthorised yes. Yes its in the terms and conditions. It just made me scared to think I could have been stuck somewhere with no money. I think I will be moving my non bills money to another bank to be on the safe side.
  • Lloyd's are great. They recently returned a DD for something like £8 that my wife had coming out (usually came out on the 12, for some reason this month they took it on the 9th) as she had £2 too little available funds, and then charged her £20 for the privilege.

    Amounts and dates made up as cant remember and wifes not here, but it was along those lines, charges would take us much more OD than the £2 she was short.
    The way things are going, soon we are all going to be victims of something or other.

    Who will we blame then?
  • Fireflyaway
    Fireflyaway Posts: 2,766
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    I do admit I'm not great with money but I agree with Iwanttobefree- some charges are so disproportionate. It can make a small mistake into a spiralling debt problem.
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