Daily Banking Industry News
Monday 22nd of February 2010

Banking Sectors:

By company:

By organisation:

New!

Also see:

September 11, 2007

Lloyds TSB leads the way to lower charges

by Gill Montia

Story link: Lloyds TSB leads the way to lower charges

Lloyds TSB is the first of the High Street banks to announce that it will be reducing its charges for unauthorised overdrafts, from 2nd November this year.

The bank will cut its interest rates for unauthorised borrowing by approximately one-third, whilst also lowering charges for unauthorised overdrafts and bounced cheques.

From November, customers who had been charged £30 for an unauthorised overdraft will pay £15 a month plus between £6 and £20 a day, depending on the size of the overdraft.

The cost of bounced cheque, standing order, or direct debit will go down from £35 to £20.

In the six months to the end of June 2006, Lloyds refunded £36 million to customers who complained about charges that they alleged were unfair.

It is estimated that during the same period High Street banks and building societies returned £570 million in total to customer threatening to sue over charges.

The move by Lloyds TSB is likely to prompt similar responses from other leading banks.

Currently eight UK bank’s are involved in a case in the High Court which has been brought by the Office of Fair Trading to establish the legality of the penalty charges.

The outcome of the case is not expected until 2008 and Lloyds TSB is being defensive about plans to reduce its charges, describing them as a response to consumer feedback, rather than an attempt to anticipate the outcome of the High Court case.

The Consumer Action Group (CAG) has been a leading opponent of unreasonable bank charges.

On hearing the news from Lloyds, a spokesman for the CAG said that the revised charges were still excessive, given that the group estimates the true cost to a bank of sending a letter dealing with a bounced cheque is £2.00.

 

Add to Bookmarks:

ADD TO NETSCAPE     ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL


Related stories to: Lloyds TSB leads the way to lower charges

BMO facing $12bn outlay  ...

Which? advises consumers on claiming back bank charges  ...

Lloyds Banking Group posts £4bn first-half loss  ...

RBS heads unreasonable overdraft charges league  ...

OFT brings test case on overdraft charges  ...

No Comments »

No comments yet.

Leave a comment


Previous: « City jobs at risk
Next: Record high for CAB debt enquiries »

Visited 1120 times, 1 so far today

Investment Banking News


Savings & Investment News




Financial Reports News