Lloydstsb charging £5 a month for an overdraft facility

[Billy the Fish]

Has anyone who banks with Lloyds noticed this in the last couple of months?

Bit of a piss take I think, no letter to inform me they're now charging and I only know what it is because I googled CHG 5.00 as it appears on my statement.

Is this accross the board or only on some accounts?

I very rarely use my overdraft but like to have it there just in case, I haven't been into it for months. If they don't get rid of it and refund the money I'll soon be changing my bank.

 

[Westdene Seagull]

At the back end of last year I got a letter and pamphlet from Lloyds about changes in charges across all their accounts. Didn't look at the changes for a normal current account as I have an account you pay a monthly fee for. £5 does seem a bit of a piss take for just having the facility available rather than using it.

 

[beorhthelm]

you will surely have had some literature to tell you of this change. HSBC done the same a year or two ago, so i told them to stuff it. i dont mind a charge for using an overdraft, but just to have the facility is a bit of a piss take. plenty of other banks and Nationwide out there.

 

[bhaexpress]

you will surely have had some literature to tell you of this change. HSBC done the same a year or two ago, so i told them to stuff it. i dont mind a charge for using an overdraft, but just to have the facility is a bit of a piss take. plenty of other banks and Nationwide out there.

Exactly.

 

[Billy the Fish]

you will surely have had some literature to tell you of this change.

Must've thought it was junkmail and thrown it away then. I'll see what Lloyds say, looking on t'internet there's accounts with cashback deals if you change banks, think I'll be looking into those.

 

[Gazwag]

Most businesses have to pay an annual fee for an overdraft facility don't really see why individuals are different.

You are paying for a facility that will save you quite a bit if you go overdrawn without it, bit like paying a sub to the AA really

 

[Easy 10]

The days of free banking are numbered.

You can thank all the folk who successfully clawed back all their bank charges for going unauthorised overdrawn. Just means EVERYONE has to pay now, whether you keep your account in good order or not.

 

[beorhthelm]

Most businesses have to pay an annual fee for an overdraft facility don't really see why individuals are different.

well, they've spent years, decades, offering the free banking facilities. cant really expect us to simply accept fees now. bit like you insurer offering free breakdown cover, then deciding to charge for it.

The days of free banking are numbered.

maybe (and your point of who to blame is spot on), but while others offer the free facilities, we should move banks and hopfully they will decide its not in their interests after all.

 

[Billy the Fish]

The days of free banking are numbered.

You can thank all the folk who successfully clawed back all their bank charges for going unauthorised overdrawn. Just means EVERYONE has to pay now, whether you keep your account in good order or not.

That might happen, but not yet. While there's still a choice I'll take free banking, plenty out there not charging £60 a year for an overdraft facility.

 

[Herr Tubthumper]

The days of free banking are numbered.

You can thank all the folk who successfully clawed back all their bank charges for going unauthorised overdrawn. Just means EVERYONE has to pay now, whether you keep your account in good order or not.

Do you mean the banks who were charging, almost certainly illegally punitive, fees for unauthorised overdrafts etc?

 

[Notters' Dad]

Mine's a Classic Account with Lloyds. There was a letter in July2010 saying planned or unplanned overdrafts would incure a charge of £5 per month for each period in which the facility was used, with no charge for facilities which were agreed but not used.

 

[sten_super]

Do you mean the banks who were charging, almost certainly illegally punitive, fees for unauthorised overdrafts etc?

Yes he does. The point is that banks make no money from the average high street customer. They have to make money on these accounts somewhere; the ridiculously high charges (whatever the merits or otherwise of them) were the banks way of doing that. Now that revenue has dried up they are having to find revenues in other areas of high street banking.

 

[Herr Tubthumper]

Yes he does. The point is that banks make no money from the average high street customer. They have to make money on these accounts somewhere; the ridiculously high charges (whatever the merits or otherwise of them) were the banks way of doing that. Now that revenue has dried up they are having to find revenues in other areas of high street banking.

Well I'm glad they're sticking to legal means of running their banks. The latest scam seems to be worry-mongering punters into taking out crazily priced identity theft insurance. I had a lengthy chat with Barclays about this a few weeks back when they tried to get me to sign up to some policy. Telling me that the answers to their identification questions can easily be obtained by third parties suggests they know the issue lies with their flimsy security measures and not me, so why should I insure myself against their inadequacies? I was then told I would possibly be liable for any losses. I let them know that knowingly having huge holes in their security processes would not help them in a court. They then politely backed off.

 

[cjd]

The days of free banking are numbered.

You can thank all the folk who successfully clawed back all their bank charges for going unauthorised overdrawn. Just means EVERYONE has to pay now, whether you keep your account in good order or not.

Right....so all those people who paid exhorbitant charges for going overdrawn etc etc......and then some of them were quite rightly re-imbursed, now means that the people who use banks to safeguard their money, help facilitate them paying their bills thru S.O.s etc, get access to their accounts online 24/7 etc etc etc.......now have to pay for this valuable service......? No wonder people are upset.

Let's go back to the old system, where the weak and vulnerable pay all the costs for the self-righteous people who are outraged at the new developments. Give the poor a good kicking when they're down...it's the only way.

 

[Shropshire Seagull]

I have a c/a with HALIFAX - the a/c is hardly used but I have a £600 overdraft. Some time ago they changed their fee structure for this - nice and simple - £1 per day for each day you are overdrawn [up to £2k]. I now find I've got a £37 fee for being overdrawn for 37 days by £19.74. I was caught out by an annual DD for £32 which took me overdrawn and the first I knew of it was when I received a monthly statement.

The most annoying fact is that I also have a savings a/c with Halifax too [paying paltry 0.5%] which could easily have transferred funds accross to bring the c/a back in to credit.

I feel stitched up, what should I do? I have phoned Halifax Online but they are all now trained up to give nothing back - rules is rules. Can / should I take higher?

 

[Biscuit]

Always been very happy with Nationwide but I have an ISA (with a fair chunk in it) that gives me basically nothing back despite the fact I've taken nothing out and put £50 in it every month. Going to transfer it to my c/a and be done with it.

I'm not being treated with any loyalty so why should I show it? Anyone recommend any good deals for changing banks?

 

[Easy 10]

Right....so all those people who paid exhorbitant charges for going overdrawn etc etc......and then some of them were quite rightly re-imbursed, now means that the people who use banks to safeguard their money, help facilitate them paying their bills thru S.O.s etc, get access to their accounts online 24/7 etc etc etc.......now have to pay for this valuable service......? No wonder people are upset.

Let's go back to the old system, where the weak and vulnerable pay all the costs for the self-righteous people who are outraged at the new developments. Give the poor a good kicking when they're down...it's the only way.

I'm not saying its right. But if banks can't charge people for going overdrawn, then they'll just charge everyone for providing a service. And it IS a valuable service, as you rightly say. Standing orders and d/d's to sort your bills without you bothering to lift a finger, online services to check your accounts, text messages with balance updates and/or warnings if you're sailing close to the wind. In my case, all provided FREE of charge up until now.

If I have to pay a fiver a month for this then so be it. Maybe we've had it too good for too long.

 

[beorhthelm]

Always been very happy with Nationwide but I have an ISA (with a fair chunk in it) that gives me basically nothing back

more than a year old i bet? they all change their interest rate on older "last years" ISA to f*** all. you have to move to a new interest bearing account each year, which of course right now isnt much anyway (~3%). if you move the existing ISA to a new one it doesnt count towards your limit, so in the future (with higher interest rates) it might payoff to have kept it ISA bound. acedemic if you dont save near the ISA limit.

 

[Biscuit]

more than a year old i bet? they all change their interest rate on older "last years" ISA to f*** all. you have to move to a new interest bearing account each year, which of course right now isnt much anyway (~3%). if you move the existing ISA to a new one it doesnt count towards your limit, so in the future (with higher interest rates) it might payoff to have kept it ISA bound. acedemic if you dont save near the ISA limit.

Yep! I didn't know that! Thanks for the advice!

 

[cjd]

I'm not saying its right. But if banks can't charge people for going overdrawn, then they'll just charge everyone for providing a service. And it IS a valuable service, as you rightly say. Standing orders and d/d's to sort your bills without you bothering to lift a finger, online services to check your accounts, text messages with balance updates and/or warnings if you're sailing close to the wind. In my case, all provided FREE of charge up until now.

If I have to pay a fiver a month for this then so be it. Maybe we've had it too good for too long.

Thanks for your reply...and a good one too.

My post wasn't meant as a personal attack on you, but I do get irritated by the many others complaining in the past (and now) when the 'overcharging fiasco' was raised.The result being that so many of us who keep our accounts in credit,now would have to pay bank charges, simply because the banks could no longer bleed the poor, weak, and vulnerable . It really was the most bizarre system before.