Lloyds NEW Over Draft charges

[mrcharlie]

Don't know if this topic has been aired recently but I only found out today after checking my online banking.

 

Can you believe Lloyds have charged me a whopping £80.49 for using their planned overdraft during this November. Had I not rectified the situation they would have eventually taken over £100 in OD fees in a single month...a staggering £1200.00 quid a year!!!

 

Like many families out there we set up an Overdraft a few years back when things were tough.....and like many families just got sucked into the cycle of living in and out of the OD with each passing month.

 

However, such blatant ripoff has resulted in me using my separate savings account to wipe off the OD and put a small float in our joint account to ensure we never go back.

 

Sorry Lloyds but your greed has totally backfired on you, you now wont make a penny from me. Yes, my savings have taken a knock, but I'd rather put back a little each month than line your greedy pockets.

Edited November 22, 2017 by mrcharlie

[SnailyBoy]

Was this a new change to the overdraft policy?

 

Edit. Assuming it was after reading the thread title.

 

Did they tell you about it?

[mrcharlie]

Was this a new change to the overdraft policy?

 

Edit. Assuming it was after reading the thread title.

 

Did they tell you about it?

 

Neither myself nor my partner knew anything of this. But after googling it seems like it was well documented.

Previously our OD fees were averaging between £35-60 per month depending of what bills.....or unexpected bills!! came. For the comfort of adding a little each month to our savings pot and leaving it untouched, we were quite happy to use the planned OD each month. But the new fees are grotesquely out of proportion as to what we are borrowing on the OD, hence ending it tonight!!

 

Just legal daylight robbery

Edited November 22, 2017 by mrcharlie

[SnailyBoy]

You were spending £35-60 on overdraft fees, to allow yourself to save money?

[mrcharlie]

You were spending £35-60 on overdraft fees, to allow yourself to save money?

 

Not quite like you imagine,

We have a separate savings account. But our combined wages are paid into a joint account, from which everything comes out of,. We don't have a credit card so holidays are paid for using a combination of our own money and the OD. Each month our wages would totally clear the OD, but by the 2nd week of each month we'd be back into OD...and hence the cycle. We both didn't want to use our savings account, so for the sake of £30 odd quid we carried on. Yes, the holidays and Xmas period would push up OD charges higher but only until payday came back round.

However, having sat down tonight and listed all our outgoings, I don't see us going back into the OD...unless something happens on the work front!!

[SnailyBoy]

It's just a really expensive way of not using savings.

[mrcharlie]

It's just a really expensive way of not using savings.

 

Yes, I totally agree.

But our savings were made long before kids and house came along and the cost of both of those two makes it hard to save..(for us anyway). Hence why we were happier to keep "OUR" money and spend the banks money instead and pay them £30 odd quid for the privilege.

But the recent hike has totally upended that logic. So, now whilst we are very fortunate to be debtless to the bank but need to knuckle down and rebuild our savings. No biggy..., but a MAJOR loss to Lloyds! Who it seems will be down roughly £1200.00pa on a single account...Ouch!!

Edited November 22, 2017 by mrcharlie

[ECCOnoob]

Not quite like you imagine,

We have a separate savings account. But our combined wages are paid into a joint account, from which everything comes out of,. We don't have a credit card so holidays are paid for using a combination of our own money and the OD. Each month our wages would totally clear the OD, but by the 2nd week of each month we'd be back into OD...and hence the cycle. We both didn't want to use our savings account, so for the sake of £30 odd quid we carried on. Yes, the holidays and Xmas period would push up OD charges higher but only until payday came back round.

However, having sat down tonight and listed all our outgoings, I don't see us going back into the OD...unless something happens on the work front!!

 

To be honest, this to me seems like a blessing in disguise for you.

 

IMO nobody should be living off the overdraft on a monthly basis. That is not a way to manage money. Even more so if you have your own money just sitting there which you could CHOOSE to use to cover any excess you incur.

 

You seem to have some distinction between "your" money and the "bank's" money - but its your own money which is not only paying every penny back to the bank but you are also losing even more of "your" money in fees and charges.

 

If you really want that sort of regular credit facility, you should get a credit card which will have a far lower month by month charge and interest.

Edited November 22, 2017 by ECCOnoob

[mrcharlie]

To be honest, this to me seems like a blessing in disguise for you.

 

IMO nobody should be living off the overdraft on a monthly basis. That is not a way to manage money. Even more so if you have your own money just sitting there which you could CHOOSE to use to cover any excess you incur.

 

If you really want that sort of regular credit facility, you should get a credit card which will have a far lower month by month charge and interest.

 

You are quite right..it could be a blessing ofsort, albeit an expensive one tonight!!

But, Being a yorkshireman, stubborn to the end

I've decided to be exceedingly frugal for the next 6mths and spend sweet FA and clear this financial mess once and for all.

I'd sooner take the pain for 6mths and move on than live as we have been doing for the past several years.

 

So, yes...a blessing in disguise you could say

Edited November 22, 2017 by mrcharlie

[Phili Buster]

By gum, if you were able to afford £35-60 per month in OD fees you must have got one hell of a lot in your savings account to provide the amount of interest to pay those type of figures off and still be making a 'profit'. However, I doubt this will be the case.

 

A true Yorkshireman may well be 'stubborn to the end' but he is also very, very careful with his money.

 

Get that overdraft paid off from your savings or have a word with the bank and get a short term loan to pay off the overdraft. A short term loan will at a lot lower interest rate than the overdraft rate and you can pay it off over a number of months (but use your savings in preference to a loan!).

 

Finally, as you have said 'be exceedingly frugal' and spend within your means (income) and DO NOT USE THAT OVERDRAFT AGAIN

 

Finally, finally, all the best, hope you get things sorted