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To: Mr Archie Kane
Group Chief Executive, Insurance
Lloyds TSB
Dear Mr Kane
I wish to register a complaint with Lloyds TSB and yourself in particular.
My complaint relates to a letter from Lloyds TSB (attached) informing me that due to my account being overdrawn by £3, you were unable to execute an unspecified number of payments for which you will be charging me an as yet unspecified amount.
For the avoidance of doubt my complaint does not relate to the level of the fees whatsoever, whatever they may be. The substance of my complaint is directed at how these fees were calculated and set by Lloyds TSB, specifically with regard to the ‘’agreement’’ that Lloyds TSB has with the banking industry in maintaining them as per your statement in evidence in answer to question #366 to the House of Commons Scottish Affairs Select Committee on 19 March 2009:
‘’The banking industry has generally come to an agreement that they will charge certain amounts for overdraft letters.’’
Uncorrected Evidence 319
I would remind you that Select Committee guidance requires that ‘’In particular, witnesses should answer questions put to them by a committee carefully, fully and honestly. Deliberately attempting to mislead a committee is a contempt of the House, which the House has the power to punish’’.
As you will be aware Select Committee witnesses such as yourself are supplied a transcript of what was said in oral evidence, inviting them to make any corrections prior to the committee publishing the corrected transcript. As your statement is retained in corrected form you clearly considered it unambiguous enough for inclusion in the corrected evidence.
To that end I am entirely satisfied that you were truthful in what you said and that the industry ‘’agreement’’ is a matter of fact, leaving me to conclude that the fees your bank impose on me are set by reference to an arrangement with businesses otherwise unconnected with Lloyds TSB.
You should be aware that in addition to my current account I hold a substantial investment portfolio with Lloyds Private Banking which also attracts fees and so my wider concerns are obvious. I chose Lloyds because I trust (or trusted) them to offer me an honest and competitive deal.
I can only assume that this ‘’agreement’’ was made by the ’’cartel’’ referred to by Lord Falconer when he said:
‘’If you go overdrawn, as a group, the banks have almost certainly charged people hugely unfair rates, done it together, so that you can’t move from one bank to another to get relief from the charges. They have behaved badly…..somebody has now got to do something about making the banks properly charge fair rates to people and not take advantage of the cartel they operate.’’
BBC - BBC One Programmes - Question Time, 26/11/2009
Clearly your evidence to the committee raises very serious questions. It confirms that Lloyds have indeed taken advantage of me and no doubt a significant number of their customers. In doing so Lloyds have contravened vast swathes of UK competition law, too numerous to catalogue here.
No one likes being taken for a mug. I note that in the attached letter Lloyds takes the view that ‘’We know going over your account limit is sometimes unavoidable’’. By colluding with others to artificially maintain charges you impose on me which you know to be ‘’unavoidable’’ is, by any standards imaginable, a serious abuse of your position and my custom.
Therefore I require from you a written undertaking that under no circumstances will any fees relating to unplanned overdrafts of any kind be applied to my account until such time as Lloyds TSB publicly withdraws from the ‘’agreement’’.
As per the FSA’s complaints handling rules I expect you to resolve my complaint within 8 weeks of it’s receipt.. If I am unsatisfied with your response I fully intend to issue a complaint to the Financial Ombudsman.
EXC
Group Chief Executive, Insurance
Lloyds TSB
Dear Mr Kane
I wish to register a complaint with Lloyds TSB and yourself in particular.
My complaint relates to a letter from Lloyds TSB (attached) informing me that due to my account being overdrawn by £3, you were unable to execute an unspecified number of payments for which you will be charging me an as yet unspecified amount.
For the avoidance of doubt my complaint does not relate to the level of the fees whatsoever, whatever they may be. The substance of my complaint is directed at how these fees were calculated and set by Lloyds TSB, specifically with regard to the ‘’agreement’’ that Lloyds TSB has with the banking industry in maintaining them as per your statement in evidence in answer to question #366 to the House of Commons Scottish Affairs Select Committee on 19 March 2009:
‘’The banking industry has generally come to an agreement that they will charge certain amounts for overdraft letters.’’
Uncorrected Evidence 319
I would remind you that Select Committee guidance requires that ‘’In particular, witnesses should answer questions put to them by a committee carefully, fully and honestly. Deliberately attempting to mislead a committee is a contempt of the House, which the House has the power to punish’’.
As you will be aware Select Committee witnesses such as yourself are supplied a transcript of what was said in oral evidence, inviting them to make any corrections prior to the committee publishing the corrected transcript. As your statement is retained in corrected form you clearly considered it unambiguous enough for inclusion in the corrected evidence.
To that end I am entirely satisfied that you were truthful in what you said and that the industry ‘’agreement’’ is a matter of fact, leaving me to conclude that the fees your bank impose on me are set by reference to an arrangement with businesses otherwise unconnected with Lloyds TSB.
You should be aware that in addition to my current account I hold a substantial investment portfolio with Lloyds Private Banking which also attracts fees and so my wider concerns are obvious. I chose Lloyds because I trust (or trusted) them to offer me an honest and competitive deal.
I can only assume that this ‘’agreement’’ was made by the ’’cartel’’ referred to by Lord Falconer when he said:
‘’If you go overdrawn, as a group, the banks have almost certainly charged people hugely unfair rates, done it together, so that you can’t move from one bank to another to get relief from the charges. They have behaved badly…..somebody has now got to do something about making the banks properly charge fair rates to people and not take advantage of the cartel they operate.’’
BBC - BBC One Programmes - Question Time, 26/11/2009
Clearly your evidence to the committee raises very serious questions. It confirms that Lloyds have indeed taken advantage of me and no doubt a significant number of their customers. In doing so Lloyds have contravened vast swathes of UK competition law, too numerous to catalogue here.
No one likes being taken for a mug. I note that in the attached letter Lloyds takes the view that ‘’We know going over your account limit is sometimes unavoidable’’. By colluding with others to artificially maintain charges you impose on me which you know to be ‘’unavoidable’’ is, by any standards imaginable, a serious abuse of your position and my custom.
Therefore I require from you a written undertaking that under no circumstances will any fees relating to unplanned overdrafts of any kind be applied to my account until such time as Lloyds TSB publicly withdraws from the ‘’agreement’’.
As per the FSA’s complaints handling rules I expect you to resolve my complaint within 8 weeks of it’s receipt.. If I am unsatisfied with your response I fully intend to issue a complaint to the Financial Ombudsman.
EXC
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