A very puzzling question

[F_DCAs]

Now here's a poser. Can anyone state what LTSB's maximum monthly unauthorised overdraft charges have been since Jan 2005? I believe it's set at £90 at present.

[dx100uk]

i'd be inclined to ask in the lloydstsb forum.........

 

dx

[surprise]

This comes from one of their letters dated 1 August 2007.

 

"When you go overdrawn without agreeing it with us first, or when you go over the limit you agreed wth us, we will charge you £30. We will charge you this amount each day your overdraft increases. We will do this up to a maximum of £90 each month.

 

When you borrow without our agreement we will charge you a higher rate of interest. We charge you at the LLoyds TSB Unauthorised Overdraft Rate. This is currently 2.20% per month. This works out an an equivalent annual rate (EAR) of 28.85%.

[I've got no money]

This comes from one of their letters dated 1 August 2007.

 

"When you go overdrawn without agreeing it with us first, or when you go over the limit you agreed wth us, we will charge you £30. We will charge you this amount each day your overdraft increases. We will do this up to a maximum of £90 each month.

 

When you borrow without our agreement we will charge you a higher rate of interest. We charge you at the LLoyds TSB Unauthorised Overdraft Rate. This is currently 2.20% per month. This works out an an equivalent annual rate (EAR) of 28.85%.

 

That sounds not only like not only an unfair term but also a penalty clause - I know that the banks are appealing on the Unfair term BUT as the OFT point out anything they do in respect of unfair terms is in addition to the Common Law rules on penalty clauses.

[F_DCAs]

Sounds like the EAR in that letter is wrong as well. Don't know if I'm missing something here about how they've arrived at that figure?

[F_DCAs]

And quite right - that letter sounds like the application of a penalty to me also.

[surprise]

Lloyds is my daughter's account and I was dealing with the bank charges before the stay. this was one of the letters she received following a direct debit that was returned. I never worked the figures out just copied in response to the poster's request. Because Lloyds were taking her benefits in charges I involved her MP and he actually visited her branch and Lloyds refunded £350 as a gesture of goodwill.