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Hello everyone.
I have been with Lloyds Bank all my life and for something like 20 years have had a packaged account, charging £25 per month, including free overdraft of £500. In addition, I have enjoyed a generous authorised overdraft limit of £9,800, which has been useful at times and especially, I must admit, in the last few years. Both these were put in place by the bank. I don't recall any request or discussion, although I always had an overdraft limit at some level. Last November, when Lloyds introduced their new charges, they charged fees at half rate to begin with. I took action to reduce my overdraft and then in February, after a few days notice, Lloyds started charging at the full rate. The daily deductions from my account I found unaffordable and very depressing. Altogether, from November to March, it amounted to over £400. What a way to treat a customer - plundering their account.
I sold securities from my ISA; something that ought to have been unthinkable, and paid off the overdraft. It will be very hard to stay in credit permanently, after being so used to the available borrowing to smooth cashflow, but I'll try. As I realised use of the full overdraft would entail intolerable charges of over £13 a day, I reduced my overdraft limit online to £5,000, but even that, I do not wish to use.
Lloyds charges equate to an APR exceeding 50 (some say 60) percent, yet they boast of a "simple charge". Why is a bank allowed by the Regulator to get away with not quoting a rate of interest? Surely this is unfair to consumers? Lloyds has actually made the regime for authorised overdrafts more harsh than that for unauthorised overdrafts, where the Regulator forced them to eliminate charges, though they presumably still reverse DDs and refuse payments.
I am going to make a formal complaint to Lloyds, although their record in dealing with complaints is poor, to say the least.Will it make any difference?
I have been with Lloyds Bank all my life and for something like 20 years have had a packaged account, charging £25 per month, including free overdraft of £500. In addition, I have enjoyed a generous authorised overdraft limit of £9,800, which has been useful at times and especially, I must admit, in the last few years. Both these were put in place by the bank. I don't recall any request or discussion, although I always had an overdraft limit at some level. Last November, when Lloyds introduced their new charges, they charged fees at half rate to begin with. I took action to reduce my overdraft and then in February, after a few days notice, Lloyds started charging at the full rate. The daily deductions from my account I found unaffordable and very depressing. Altogether, from November to March, it amounted to over £400. What a way to treat a customer - plundering their account.
I sold securities from my ISA; something that ought to have been unthinkable, and paid off the overdraft. It will be very hard to stay in credit permanently, after being so used to the available borrowing to smooth cashflow, but I'll try. As I realised use of the full overdraft would entail intolerable charges of over £13 a day, I reduced my overdraft limit online to £5,000, but even that, I do not wish to use.
Lloyds charges equate to an APR exceeding 50 (some say 60) percent, yet they boast of a "simple charge". Why is a bank allowed by the Regulator to get away with not quoting a rate of interest? Surely this is unfair to consumers? Lloyds has actually made the regime for authorised overdrafts more harsh than that for unauthorised overdrafts, where the Regulator forced them to eliminate charges, though they presumably still reverse DDs and refuse payments.
I am going to make a formal complaint to Lloyds, although their record in dealing with complaints is poor, to say the least.Will it make any difference?
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