Lloyds TSB change to banking charges

[fox20thc]

My concern is for those people who one way or another are already in the trap of living on their overdraft. Wages go in - clear overdraft - balance very low - dip back into overdraft to pay the bills.

 

Now here is a scenario.. you are already living on your OD.. the new charge of £5 plus interest takes you over your agreed limit you are then over the limit and will be charged another £5 and £5 for every day you don't clear the extended limit.

 

It could get very ugly very quickly and I can imagine some folks are going to be in serious financial difficulty if they are in that position.

[Classic Rock]

I used to have a Lloyds account years ago but when they changed rules (I think connected with interest paid) I left. The message to people is to vote with your feet, there are plenty of other banks who will pay you to switch to them and offer much better terms.

[Bulgarian]

there are plenty of other banks who will pay you to switch to them and offer much better terms.

 

Santandare is looking pretty good at the moment.

[Berberis]

Santandare is looking pretty good at the moment.

 

I cant speak for Santander, but Alliance and Leicester (who are the largest part of Santander in the UK are the biggest bunch of crooks I have had the misfortune to have dealings with.

 

Stay well away.

[Old_Bloke]

Santandare is looking pretty good at the moment.

 

Santander have come in for a huge amount of criticism and lots of complaints recently. They're bribing people to open loads of new accounts, but they're also finally merging systems etc with Abbey and Alliance & Leicester (which they bought a while back).

 

These two massive chunks of work mean that service levels are terrible for too many of their customers - direct debits aren't being set up, mortgage payments are being missed etc, all because Santander's bitten off more than they it chew right now.

[Berberis]

My concern is for those people who one way or another are already in the trap of living on their overdraft. Wages go in - clear overdraft - balance very low - dip back into overdraft to pay the bills.

 

Now here is a scenario.. you are already living on your OD.. the new charge of £5 plus interest takes you over your agreed limit you are then over the limit and will be charged another £5 and £5 for every day you don't clear the extended limit.

 

It could get very ugly very quickly and I can imagine some folks are going to be in serious financial difficulty if they are in that position.

 

Alliance and Leicester does something similar, but when its the other way round, they are not so quick to pay up.

 

Eg. They (A&L) lost a credit card payment of mine, leaving my CC locked when I needed it. They took nearly 2 weeks to retrieve the lost money. What did I get as compensation? £10, for losing my money for 14 days. If I went over my agreed overdraft with the bank for 14 days it would cost me nearly £70 in charges.

[Berberis]

Santander have come in for a huge amount of criticism and lots of complaints recently. They're bribing people to open loads of new accounts, but they're also finally merging systems etc with Abbey and Alliance and Leicester (which they bought a while back).

 

These two massive chunks of work mean that service levels are terrible for too many of their customers right now - direct debits aren't being set up, mortgage payments are being missed etc, all because Santander's bitten off more than they it chew right now.

 

+ Payments from Alliance and Leicester accounts to Cahoot credit cards are wrong and being lost. This is still happening a month after I first pointed it out to them. They know about it, so do Cahoot, but they are not doing anything about it.

[julado]

My partner was in the trap of living on his overdraft....but carefully so. He decided to donate £3 a month to a charity and a date for the first withdrawal was agreed. They took the money early which meant his overdraft was pennies in the red for two weeks before he even noticed it....his state benefits being paid every two weeks (which he used to draw out in cash leaving the almost maxed out overdraft).....and as a result he accrued about £75 worth of costs plus a letter at another £25 or so.

 

I got onto the bank and they wouldn't shift....so he shifted accounts to the Halifax.....and when I can be bothered I will be writing to Lloyds, with a detailed statement of my partner's income and outgoings and an offer of £1 per month (the statutory minimum according to CAB guidelines)...and after a few months I will ask them to write it off.

 

He was willing to pay a few pounds a month to reduce his overdraft but Lloyds were totally unflexible, helpful or understanding.

 

Just to add.....in the past my partner had bills that had to be paid...and Lloyds bounced the d/d because of insufficient funds...and rightly so...their choice. So on the last occasion I fail to see how they did not bounce the d/d because of insufficient funds - albeit it only about a pound short. Double standards....they allow it and make loads of money!!!!

[Berberis]

My partner was in the trap of living on his overdraft....but carefully so. He decided to donate £3 a month to a charity and a date for the first withdrawal was agreed. They took the money early which meant his overdraft was pennies in the red for two weeks before he even noticed it....his state benefits being paid every two weeks (which he used to draw out in cash leaving the almost maxed out overdraft).....and as a result he accrued about £75 worth of costs plus a letter at another £25 or so.

 

I got onto the bank and they wouldn't shift....so he shifted accounts to the Halifax.....and when I can be bothered I will be writing to Lloyds, with a detailed statement of my partner's income and outgoings and an offer of £1 per month (the statutory minimum according to CAB guidelines)...and after a few months I will ask them to write it off.

 

He was willing to pay a few pounds a month to reduce his overdraft but Lloyds were totally unflexible, helpful or understanding.

 

Just to add.....in the past my partner had bills that had to be paid...and Lloyds bounced the d/d because of insufficient funds...and rightly so...their choice. So on the last occasion I fail to see how they did not bounce the d/d because of insufficient funds - albeit it only about a pound short. Double standards....they allow it and make loads of money!!!!

 

Banks cant actually take money from peoples benefits like this so you should remind them of this fact.