Loan account interest

[John Evans]

I have a business currant account with Lloyds, I also at the same branch have two loan accounts. One is a business loan to the Company, the other loan account is in my name and is being used to purchase the Companies warehouse. I noticed the other day that payments being made from the Company’s Current account are credited to the Company loan account on the same day but to the loan account in my name 2 days later. This situation has been going on for some years and would amount to a serious overcharge of interest. Have I a case for redress ?

[Seminole]

I don't think so as this is standard practice by the banks. They can deduct the payment from your current account immediately, sit on the money earning interest for a couple of days and then eventually putting it where you want it to go. The banks do these sorts of things because they can get away with it. It's a bit like organised crime.

[John Evans]

Hi Seminole, Thanks for your reply – having a devious mind I assumed that Lloyds made an instant transfer on the same named accounts, knowing that both accounts will be looked at by the same person making any delay and therefore any overcharge obvious. Then delay the transfer between the differently named accounts, in the assumption that there would be no cross reference and they could hide the overcharge. I will write to my branch and post their response.

[John Evans]

Hi Seminole, Thanks for your reply – having a devious mind I assumed that Lloyds made an instant transfer on the same named accounts, knowing that both accounts will be looked at by the same person making any delay and therefore any overcharge obvious. Then delay the transfer between the differently named accounts, in the assumption that there would be no cross reference and they could hide the overcharge. I will write to my branch and post their response.

[BankFodder]

It is an interetsing point and maybe - depending on the response you get from the bank, you could make complaint and eventually take it to the Ombudsman. This is the kind of thing that he would be willing to pronounce upon.

[BankFodder]

It is an interetsing point and maybe - depending on the response you get from the bank, you could make complaint and eventually take it to the Ombudsman. This is the kind of thing that he would be willing to pronounce upon.

[John Evans]

This topic was closed on 03/05/19.

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