Lloyds O/Draft Charges - need help?

iowspence · 14 June 2018 at 1:15PM

Hi,

Sorry first time on here so please bare with me...

I have suddenly realised that i have been charged £102 in a month due to the new Lloyds overdraught charges and a call to the bank was un-helpful, (after being a customer for 30 years) who just offered me a loan to shift my debt, which will just have me paying lots more interest and making me worse off.

Reading on Martins help-lists, there were two things that stood out. A Nationwide Flex-Direct account which I intend to do imminently as soon as I can.

I also applied for a Tesco Bank credit card to shift my over-draught onto which I have been accepted on.

I tried to balance transfer my over-draught onto the new card online whilst applying, which it wouldn't let me do it. Does anyone know how i will be able to transfer my over-draught onto this card as I couldn't quite understand how it is done?? From reading the small print it mentioned using the card to buy the debt, but felt a little lost...?

Can anyone please advise me what I need to do in layman's terms...?

Many thanks

Spence

eskbanker · 14 June 2018 at 1:43PM

'Balance transfer' is the term for shifting money from one credit card to another, which doesn't apply here. What you have in mind is known as a 'money transfer' - there are cards that offer this, further details at https://www.moneysavingexpert.com/credit-cards/money-transfers

However, your ability to get decent credit card offers may be hampered by the scale of your overdraft, although we obviously don't know the rest of the picture of your finances. Try checking your eligibility at https://creditcards.moneysavingexpert.com/?money-transfers

I'm not sure that a Nationwide FlexDirect would actually help you even if you were accepted for it, as its main benefit is to pay market-leading interest on credit balances, whereas with all due respect that's not really relevant if you don't have savings but are in debt. Reducing the interest burden will undoubtedly help, but obviously at some point it has to be paid back, which will involve earning more and/or spending less, so moving debt to lower interest will be worth doing but further actions will be needed....

iowspence · 14 June 2018 at 2:00PM

Hi,

Thank you. Yes, as you say it is money-transfer and not bank-transfer that I was refereeing too, so apologies for my mistake.

I have been accepted for the Tesco 36 month interest free card through Martins link. I just didn't quite understand how i can actually transfer my current account over-draught onto this card? I may just have to ring tesco bank and ask them directly.

I understand that it isn't the best solution but I cannot afford to pay £100 a month with the current Lloyd's account, so at least I will be paying off the debt without paying any interest.

My credit rating is quite good albeit that I am in debt, but just needed some advice on how to get myself out of it and I do realise that part of that is reducing the amount I pay out.

I have felt in recent years that Lloyd's have taken advantage of me and been inadvertently badly advised (IMO) so haven't been happy with the service I have received of late which was why I was looking to move banks.

Many thanks

Spence

K80_Black · 14 June 2018 at 2:11PM

The new fees have been in place for a long time and they gave ample warning. For customers like me who rarely and barely use their overdraft it's a blessing - others who constantly live thousands of pounds overdrawn are now penalised more heavily.

While I'm sorry that you feel you have been mistreated, I can't help but feel that actually reading correspondence from your bank and paying attention to your finances may have saved you both money and ill feeling. I'd take this as a lesson - T&Cs and charges change all the time and it's your responsibility to keep up with them! Good luck with your new bank.

BoGoF · 14 June 2018 at 2:14PM

Unless your new tesco card is offering a money transfer facility to your current account then you are not going to be able to clear your overdraft using it.

Mnd · 14 June 2018 at 2:19PM

If you had a 0% purchases card then you can use that for everything you buy, releasing up cash to get rid of the OD

noh · 14 June 2018 at 2:20PM

If it is this one
https://www.tescobank.com/credit-cards/balance-transfer-card-1/

then it does offer money transfers at 0% interest for 36 months with a fee of 3.94%

You need to log in online and do a money transfer to your bank account or alternatively call them and request a money transfer.
Having done that do not use your card again the rate for purchases is 18.9%

eskbanker · 14 June 2018 at 2:21PM

iowspence wrote: »

I have been accepted for the Tesco 36 month interest free card through Martins link. I just didn't quite understand how i can actually transfer my current account over-draught onto this card? I may just have to ring tesco bank and ask them directly.

See https://yourcommunity.tescobank.com/t5/Credit-Cards/If-I-have-a-Money-Transfer-Credit-Card-how-do-I-transfer-money/ta-p/2863

iowspence · 14 June 2018 at 2:45PM

K80 Black,

I think the main reason why I don't use forums or any form of social media is probably evident now with your reply and why I feel that you feel the need to justify that you don't use your overdraft and that you are better with money than I am - well done you!

It may be that I looked at the paperwork and didn't understand the literature that was laid before me so excuse me for not being as intellectual nor as intelligent as yourself! I just don't appreciate the condescending impression I have got from your reply.

I asked the bank yesterday who informed me that they had only enforced the full charges onto my account last month. I have felt mistreated due to the fact that I had been pressured into taking various Lloyd's items out over the past few years when in meetings and not knowing exactly what it was and felt pressured into buying them - that's why Lloyd's bank leaves a bitter taste in my mouth - this is evident as they have acknowledged this and offered me compensation for being mis-sold policy's in the past.

At the end of the day, I just asked for some help as I didn't fully understand the information I had in front of me. If i had been looking for financial help, the Martin Lewis website was always a valuable asset to have with people willing to help others out. Not to be judged by the financial position I currently am in...

Thanks to the other posters that have added information for me to help. I sincerely appreciate it. :-)

That's me done, one post and I am out of here.

Never again....

Spence

K80_Black · 14 June 2018 at 4:11PM

iowspence wrote: »

K80 Black,

Edited to add my name. Lovely. Well, I'm sorry you didn't find my post useful. I didn't mean to be condescending, we're all learning, all the time - as long as we want to. I was merely pointing out that if you receive a letter from your bank, you should probably read it and if you don't understand it you should call them.

I assume you have ticked the box saying you have READ and UNDERSTOOD the T&C of your new credit card - I certainly hope that's the case!

msallen · 14 June 2018 at 4:32PM

iowspence wrote: »

K80 Black,

I think the main reason why I don't use forums or any form of social media is probably evident now with your reply and why I feel that you feel the need to justify that you don't use your overdraft and that you are better with money than I am - well done you!

It may be that I looked at the paperwork and didn't understand the literature that was laid before me so excuse me for not being as intellectual nor as intelligent as yourself! I just don't appreciate the condescending impression I have got from your reply.

I asked the bank yesterday who informed me that they had only enforced the full charges onto my account last month. I have felt mistreated due to the fact that I had been pressured into taking various Lloyd's items out over the past few years when in meetings and not knowing exactly what it was and felt pressured into buying them - that's why Lloyd's bank leaves a bitter taste in my mouth - this is evident as they have acknowledged this and offered me compensation for being mis-sold policy's in the past.

At the end of the day, I just asked for some help as I didn't fully understand the information I had in front of me. If i had been looking for financial help, the Martin Lewis website was always a valuable asset to have with people willing to help others out. Not to be judged by the financial position I currently am in...

Thanks to the other posters that have added information for me to help. I sincerely appreciate it. :-)

That's me done, one post and I am out of here.

Never again....

Spence

Wow!

Just wow!

K80 Black wasn't being particularly critical, they were just pointing out that you should take notice of any letters that your bank sends you. No-one is judging you for the financial position you are in.

However I am perfectly happy to judge you for the actions you have taken. You have been irresponsible and careless with your finances, and yet you now seek to blame your bank for this when the responsibility is yours alone.

You need to learn from this. You need to make sure you know what you're planning on doing before you do it. Take note of what financial institutions are telling you - whether that be your bank informing you many many months ago about an impending change to it's overdraft fees, or the details of the offer you are signing up for with a new credit card.

If you are prepared to wipe that chip off your shoulder and hang around here you will get lots of good advice, but you need to listen to what you are being told, and stop throwing your toys out of the pram when someone points out a home truth or two.

If on the other had you just want people to agree with you about how nasty the banks are, but offer no intelligent solutions to your predicament then there are a variety of other forums (or even different boards on this forum) that offer that.

Lloyds O/Draft Charges - need help?

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