Lloyds Tsb Charge 127% Rate On Authorised Overdraft

[Imp]

I have at last been persuaded to close my accounts with Lloyds TSB, after about 15 years. Todat I got my statement, which included a £5.00 overdraft usage fee for using my authorised overdraft. In addition there is £1.26 interest. I have phoned them, and apparently received a letter before Christmas telling me about this fee. I've got my statement, and worked out the equivalent interest rate I am now being charged for my overdraft - 127% !!!!! It's enough to make a loan shark blush!

About six months ago, they cheesed me off, enough to check out the competition, and settle on Natwest. I didn't get around to changing, but now I think I will.

[Errol]

Yes, standard charge is now £5 for any month where an authorised overdraft facility is used.

[Venger]

About six months ago, they cheesed me off, enough to check out the competition, and settle on Natwest. I didn't get around to changing, but now I think I will.

Same with RBS and Nat West now, except it's £6 "Usage Fee".

Introduced back in July this year.

I wasn't aware of it, and looking back through some statements I see I've been charged for dipping into my authorised overdraft.

Seems reasonable to apply such a usage fee charge to me.

Millions of NatWest and Royal Bank of Scotland current account customers are to be hit with new charges of up to £72 a year – on top of the interest they must pay – if they go overdrawn by more than just a tenner.

http://www.theguardian.com/money/2013/may/18/rbs-natwest-fees-penalises-borrowers

[Eddie_George]

Are there any banks that don't let you have an overdraft in place, so when you try to take money out, you couldn't?

I guess that'd be a silly move for banks as they wouldn't make any money from people's accidents.

[longtomsilver2]

I recommend First Direct. £250 fee free, interest free comes as standard with their current accounts. I had a £1,500 overdraft facility with them and they charged an APR equivalent to only 9.9% no longer required this so had this revoked.

[gf3]

I recommend First Direct. £250 fee free, interest free comes as standard with their current accounts. I had a £1,500 overdraft facility with them and they charged an APR equivalent to only 9.9% no longer required this so had this revoked.

I was just looking up the details and was going to recommend first direct myself. Looks like you get a fee free overdraft limit of £500 the first £250 is interest free the next £250 is charged at 15.9%

[fluffy666]

Same with RBS and Nat West now, except it's £6 "Usage Fee".

Introduced back in July this year.

I wasn't aware of it, and looking back through some statements I see I've been charged for dipping into my authorised overdraft.

Seems reasonable to apply such a usage fee charge to me.

Hmmm.. Overdrawn - arranged overdraft - by £42 for 1 day due to a direct debit going out early incurring a £6 charge. One calculator makes that 515% APR.

I don't see that as reasonable. It can't possibly actually cost them £6, and it's a pretty major change to the T&Cs.

[hemichromis]

Barclays don't charge me a fee but the interest rate is 19.9%