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Lloyds Rip Off Merchants

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Guest Barebear

I know they've lost a lot of money but is there any need for this :-

My son has a current account with them and has an overdraft facility for 400. If you go over that 400 they charge you an unauthorised overdraft fee. o.k. Fair enough.

Last month he had his pay date changed by his employer and asked the bank whether they would extend the overdraft to 600. No was the reply, so he went over the agreed 400 by 120.

They charged him 200 pounds for this !! And sent a letter saying that if your over 100 over the agreed overdraft limit they will charge 20 pounds a time for a maximum of 10 days in a month, 200 pounds in other words for a 100 pounds.

Catch number 2, he has also got a credit card with the same bank. They will take money from the credit card to pay any fees if they so choose.

N.B the lad earns 600 a month , so they have really got him in a never ending cycle of charges.

I told him to get another bank account and seperate credit card and shut his Lloyds account down with a snotty letter to the manager stating he had informed them of his position and instead of helping him they've just exploited him.

Apparently they wont shut the card down while you still owe money, so I reckon he should contact a solicitor and try to get the amount frozen while he sets up somewhere else.

When I read the letter I was shocked. Sure he shouldn't have gone over the agreed limit but there was extenuating circumstances. These banks always say when you have problems contact them, he did and they saw it as an opportunity to legally steal from him.

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I know they've lost a lot of money but is there any need for this :-

My son has a current account with them and has an overdraft facility for 400. If you go over that 400 they charge you an unauthorised overdraft fee. o.k. Fair enough.

Last month he had his pay date changed by his employer and asked the bank whether they would extend the overdraft to 600. No was the reply, so he went over the agreed 400 by 120.

They charged him 200 pounds for this !! And sent a letter saying that if your over 100 over the agreed overdraft limit they will charge 20 pounds a time for a maximum of 10 days in a month, 200 pounds in other words for a 100 pounds.

Catch number 2, he has also got a credit card with the same bank. They will take money from the credit card to pay any fees if they so choose.

N.B the lad earns 600 a month , so they have really got him in a never ending cycle of charges.

I told him to get another bank account and seperate credit card and shut his Lloyds account down with a snotty letter to the manager stating he had informed them of his position and instead of helping him they've just exploited him.

Apparently they wont shut the card down while you still owe money, so I reckon he should contact a solicitor and try to get the amount frozen while he sets up somewhere else.

When I read the letter I was shocked. Sure he shouldn't have gone over the agreed limit but there was extenuating circumstances. These banks always say when you have problems contact them, he did and they saw it as an opportunity to legally steal from him.

Answer to that...insist on being paid in cash. ;)

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Guest Barebear
Get the lad to open a new account with the Co-op bank -

http://www.co-operativebank.co.uk/servlet/...FSweb/Page/Bank

Then reclaim his charges from TSB -

http://www.moneysavingexpert.com/reclaim/bank-charges

Simples.

HTH

Simples !! Not it would appear.

It says you join a very long que unless you have financial hardship.

I am aware there's a possibility of getting unfair charges back but by then the damage has been done. I want to hear of some way you can get them to freeze their never ending charges and stop them putting him on a blacklist for missed payments.

The credit card element worries me as they are taking money from that to pay their charges and the card is also running up interest as this go's along. So on his credit report there will be missed payments shown.

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I know they've lost a lot of money but is there any need for this :-

My son has a current account with them and has an overdraft facility for 400. If you go over that 400 they charge you an unauthorised overdraft fee. o.k. Fair enough.

Last month he had his pay date changed by his employer and asked the bank whether they would extend the overdraft to 600. No was the reply, so he went over the agreed 400 by 120.

They charged him 200 pounds for this !! And sent a letter saying that if your over 100 over the agreed overdraft limit they will charge 20 pounds a time for a maximum of 10 days in a month, 200 pounds in other words for a 100 pounds.

Catch number 2, he has also got a credit card with the same bank. They will take money from the credit card to pay any fees if they so choose.

N.B the lad earns 600 a month , so they have really got him in a never ending cycle of charges.

I told him to get another bank account and seperate credit card and shut his Lloyds account down with a snotty letter to the manager stating he had informed them of his position and instead of helping him they've just exploited him.

Apparently they wont shut the card down while you still owe money, so I reckon he should contact a solicitor and try to get the amount frozen while he sets up somewhere else.

When I read the letter I was shocked. Sure he shouldn't have gone over the agreed limit but there was extenuating circumstances. These banks always say when you have problems contact them, he did and they saw it as an opportunity to legally steal from him.

Well, the bank has done nothing wrong and the fault lies with the account holder. How much notice did he have as far as the change of his pay date?

If he was only given short notice he could have asked his employer or a friend for a sub or loan? If the notice was insufficient if he could have told his company that the change in pay date was not acceptable.

Why does everyone assume the banks are resonsible for peoples lives ? You can see how many different circumstances could arise and how can a bank mitigate or be involved in that ??

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Last month he had his pay date changed by his employer and asked the bank whether they would extend the overdraft to 600. No was the reply, so he went over the agreed 400 by 120.

They charged him 200 pounds for this !!

Did you not instill stern financial responsibility in your sprog?

Did you not tell him to transfer some money out of his savings and into his current account to cover the shortfall?

Did you not smack him about the back of the head for spending into his overdraft at all? The £400 overdraft is not 'free money' it is there to cover eventualities like this.

Did you not take the opportunity to say 'Son, banks are scum there to extract every penny they possibly can from you. Better pay that £200, get out of your overdraft, pay off the credit card and stop living outside of your means. If you want more money, earn more money.'?

Sorry.

Harsh, but victim support & sympathy you get from the other place, HPC is more brutal with the truth. ;)

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Guest Barebear
Well, the bank has done nothing wrong and the fault lies with the account holder. How much notice did he have as far as the change of his pay date?

If he was only given short notice he could have asked his employer or a friend for a sub or loan? If the notice was insufficient if he could have told his company that the change in pay date was not acceptable.

Why does everyone assume the banks are resonsible for peoples lives ? You can see how many different circumstances could arise and how can a bank mitigate or be involved in that ??

So you would agree charging 200 pounds for 100 over the limit every month is fair would you ?

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Simples !! Not it would appear.

It says you join a very long que unless you have financial hardship.

I am aware there's a possibility of getting unfair charges back but by then the damage has been done. I want to hear of some way you can get them to freeze their never ending charges and stop them putting him on a blacklist for missed payments.

The credit card element worries me as they are taking money from that to pay their charges and the card is also running up interest as this go's along. So on his credit report there will be missed payments shown.

You could try the consumeractiongroup.co.uk forums. You ask Expiran etc to add a note to your sons credit record ie: the missed payments were caused by unfair bank charges.

http://www.consumeractiongroup.co.uk/forum...-reference.html

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Simples !! Not it would appear.

It says you join a very long que unless you have financial hardship.

I am aware there's a possibility of getting unfair charges back but by then the damage has been done. I want to hear of some way you can get them to freeze their never ending charges and stop them putting him on a blacklist for missed payments.

The credit card element worries me as they are taking money from that to pay their charges and the card is also running up interest as this go's along. So on his credit report there will be missed payments shown.

It will be along time before the UTCCR issue is resolved in the courts, how long it will susbequently take to resolve the complaints is anybodys guess but there are thousands upon thousands, due to the bandwagon effect.

If you want them to freeze fees and interest on the account, your son will need to call them and propose a repayment schedule and advise he is unable to pay the fees. They should then freeze his account and put him on a payment plan. He will need to speak to the debt recovery department at the bank. He may have to disclose details about his financial cirumstances to get an agreement in place, but he will have to be reasonable with the bank and not give them attitude!

It is worth noting that his credit file must be a true and accurate reflection of the way in which he has ran his account.

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Guest Barebear
Did you not instill stern financial responsibility in your sprog?

Did you not tell him to transfer some money out of his savings and into his current account to cover the shortfall?

Did you not smack him about the back of the head for spending into his overdraft at all? The £400 overdraft is not 'free money' it is there to cover eventualities like this.

Did you not take the opportunity to say 'Son, banks are scum there to extract every penny they possibly can from you. Better pay that £200, get out of your overdraft, pay off the credit card and stop living outside of your means. If you want more money, earn more money.'?

Sorry.

Harsh, but victim support & sympathy you get from the other place, HPC is more brutal with the truth. ;)

Read the post pal.

I'm saying the amount is extortionate and unfair, not the principle.

Oh and I didn't realise you had elected yourself as spokesman for HPC.

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How else do you think banks make money?

Print it?

Nah - it'll never catch on.

Theyve got you over a barrel.

Tell your lad to get some ladders and start earning cash.

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So you would agree charging 200 pounds for 100 over the limit every month is fair would you ?

Without penalties for delinquent account management the banks would charge every account holder fees for making card payments, cheque payments, producing statements ect ect. It is also fair to say that the fees should include costs for the pursuing of delinquent gone away accounts, this is why they are so high.

Punishing delinquency with heft fees is an essential part of providing free banking to those that are not feckless.

Everyone goes through a similiar incident at least once when they are around eighteen. They learn from this ofcourse! The same thing happened to me when I got my first VISA debit card. I didnt realise that small payments were not called to be authorised and it cost me a small fortune. I learnt to be responsible after spending a month unable to go and do anything!

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Read the post pal.

I'm saying the amount is extortionate and unfair, not the principle.

Oh and I didn't realise you had elected yourself as spokesman for HPC.

Fine print.

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Read the post pal.

I'm saying the amount is extortionate and unfair, not the principle.

Oh and I didn't realise you had elected yourself as spokesman for HPC.

I did read the post, the amount is both unfair and extortionate. But also legal. If your son doesn't like it tell him not to go over his overdraft limit again, ever.

Did he read the T&C, did he ask how much he would be charged etc?

The bank is required to provide that information, if he had taken the time to check maybe he would have been more cautious about going over his overdraft.

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Without penalties for delinquent account management the banks would charge every account holder fees for making card payments, cheque payments, producing statements ect ect. It is also fair to say that the fees should include costs for the pursuing of delinquent gone away accounts, this is why they are so high.

Punishing delinquency with heft fees is an essential part of providing free banking to those that are not feckless.

I completely disagree.

Banks should of course charge the debtor for any costs incurred, and charge the rest of the population the fair price for providing whatever services they consume. I personally don't want free banking if it means that other people are put into financial hardship as a result. This is aside from the fact that punitive charges are, rightly, illegal under contract law.

I had this same situation with HSBC. They absolutely hammered me with charges on a loan at the end of my University to the amount of £2k. I simply paid the loan down to £2k outstanding, and then told them to pay the rest out of the money they had stolen from me. It'll be a cold day in hell before I pay that or indeed borrow anything from a bank again.

Edited by Kyoto

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Guest Barebear
Without penalties for delinquent account management the banks would charge every account holder fees for making card payments, cheque payments, producing statements ect ect. It is also fair to say that the fees should include costs for the pursuing of delinquent gone away accounts, this is why they are so high.

Punishing delinquency with heft fees is an essential part of providing free banking to those that are not feckless.

Everyone goes through a similiar incident at least once when they are around eighteen. They learn from this ofcourse! The same thing happened to me when I got my first VISA debit card. I didnt realise that small payments were not called to be authorised and it cost me a small fortune. I learnt to be responsible after spending a month unable to go and do anything!

Dave, he informed the bank of his dilemma. He had to continue getting to work for the rest of the month, hence the amount overdrawn. When he was subsequently paid 7 weeks worth, it went straight into the bank.

I cant see where he has been feckless or irresponsible. The bank knew of the problem, knew he was getting exta money later on in the month yet chose not to help him and instead rip him off.

Why are you defending this ? Do you really think its fair and responsible banking ?

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Dave, he informed the bank of his dilemma. He had to continue getting to work for the rest of the month, hence the amount overdrawn. When he was subsequently paid 7 weeks worth, it went straight into the bank.

I cant see where he has been feckless or irresponsible. The bank knew of the problem, knew he was getting exta money later on in the month yet chose not to help him and instead rip him off.

Why are you defending this ? Do you really think its fair and responsible banking ?

Barebear, I've just defended your son above, but it really wasn't the banks responsibility to sub him with an extended overdraft until more money came in at the end of the month.

What they should have done, is simply rejected any direct debits and cash withdrawals beyond the agreed overdraft, charging £1 or £2 for the administration of this. None of this £20 a day ******** which is where the rip-off and injustice lies.

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Guest anorthosite
Well, the bank has done nothing wrong and the fault lies with the account holder. How much notice did he have as far as the change of his pay date?

The bank has charged an unreasonable amount, way in excess of any loss it may have incurred.

That sounds to me like its done something wrong.

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Guest Barebear
I did read the post, the amount is both unfair and extortionate. But also legal. If your son doesn't like it tell him not to go over his overdraft limit again, ever.

Did he read the T&C, did he ask how much he would be charged etc?

The bank is required to provide that information, if he had taken the time to check maybe he would have been more cautious about going over his overdraft.

if you need to pay your wages into a bank you havent got much choice , all these Kunts have the same punitive T&C's. You cant disagree with them and decide not to accept certain ones but still have an account.

You say they are legal but are they. Isn't that why the furor about bank charges recently ?

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Guest anorthosite
Without penalties for delinquent account management the banks would charge every account holder fees for making card payments, cheque payments, producing statements ect ect. It is also fair to say that the fees should include costs for the pursuing of delinquent gone away accounts, this is why they are so high.

Punishing delinquency with heft fees is an essential part of providing free banking to those that are not feckless.

Why should banking be free?

Isn't it right that you pay for it yourself, and not expect to be subsidised for it by those who might be in financial difficulty?

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I did read the post, the amount is both unfair and extortionate. But also legal.

It isn't legal, hence the reason for the test case and the thousands of people in the queue who WILL end up getting their money back unless it's a complete whitewash.

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Why are you defending this ? Do you really think its fair and responsible banking ?

I don't think anyone is saying it is a good thing, just that it will be a cold day in hell before you find a 'fair and responsible bank'.

All banks do this, even the co-op.

You avoid it by not going over your overdraft. Ever.

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Dave, he informed the bank of his dilemma. He had to continue getting to work for the rest of the month, hence the amount overdrawn. When he was subsequently paid 7 weeks worth, it went straight into the bank.

I cant see where he has been feckless or irresponsible. The bank knew of the problem, knew he was getting exta money later on in the month yet chose not to help him and instead rip him off.

Why are you defending this ? Do you really think its fair and responsible banking ?

Why should the bank care what your sons work issues are, they wanted profit, they got it. He was irresponsible in not reading how much it would cost if the bank said no to his request and not planning for such a scenario. Best solution is don't deal with banks, but if you do then know the rules of the devils game.

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Guest Barebear
Barebear, I've just defended your son above, but it really wasn't the banks responsibility to sub him with an extended overdraft until more money came in at the end of the month.

What they should have done, is simply rejected any direct debits and cash withdrawals beyond the agreed overdraft, charging £1 or £2 for the administration of this. None of this £20 a day ******** which is where the rip-off and injustice lies.

Ok I would accept that.

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