Lloyds Bank New T&Cs from November 2007

[paper_tiger3030]

A freind came to see me the other day with a copy of LTSBs new Terms and Conditions which come into force on 2 November 2007. These actually increase penalty charges.

 

The document is in a link from Lloyds TSB - Borrowing from us - Overdrafts

 

The upshot is that if you go £100 over your overdraft limit they charge you £20 PER DAY to a maximum of 10 charges per month. The 10 maximum charges are "resest" at the beginning of the next billing period. So if your £100 "unplanned overdraft" spans two billing periods (say 10 days at the end of one billing period (£200) and ten days at the beginning of the next billing period (£200) the bank will charge you £400.

 

Quick calculation on the comparative interest rate and its 2400% per year.

 

Wonder if anyone else has found this one. Far from backing down these banks are increasing the squeeze. I've also seen A&L are trying a similar change.

 

Alex.

[RogueTrooper]

[edit]

[RogueTrooper]

I've just read the new T&C and I find them disgusting. I hope the other banks aren't following suit, because I really want to move to another bank now. Hopefully, these new terms will drive enough customers away to make them reconsider. I think I might go and get a Post Office account as soon as possible.

[PeterAnderson]

Someone on here worked out that the new T&C's increase the charges by 140%

[nbizzle]

a joke

[reduk054]

How are these not penalty charges? Are we not going round and round in circles?

I smelled a rat when A&L sent me through their charges and then Lloyds followed a day later.

Am I missing the point? What has changed to suggest that these charges are fair, and not punitive?

[Mistermind]

The document is in a link from Lloyds TSB - Borrowing from us - Overdrafts

 

The upshot is that if you go £100 over your overdraft limit they charge you £20 PER DAY to a maximum of 10 charges per month. The 10 maximum charges are "resest" at the beginning of the next billing period. So if your £100 "unplanned overdraft" spans two billing periods (say 10 days at the end of one billing period (£200) and ten days at the beginning of the next billing period (£200) the bank will charge you £400.

 

This is likely a psychological warfare ploy, with Lloyds leading other banks from the front as Lloyds did with several court hearings which they won.

 

With on the one side CAG advocating a low charge at £5, and on the other Lloyds making a song and dance about £400 penalty charges in place of £35 to date, the unwary and the innocent such as the OFT, might be induced into thinking -- lets go for damage limitation, a compromise splitting the difference between the two sides.

 

I suggest Lloyds and BBA top brass are unlikely to believe they could sustain £400 penalty charges without revolution in the streets. Bankers just want to bamboozle the public into thinking how reasonable bankers are, when they roll back £400 charges to a mere £35.