If you are a customer of Lloyds Bank I don’t need to tell you about the disgusting change they have made to their overdraft fees just before Christmas. In the literature, they boast that they will be saving a high percentage of their customer’s money on their fee’s. In reality, this is another great example of the rich getting richer whilst the poor get trampled on.
To explain the fee’s quickly you are charged 1p for every £7 you owe daily. An overdraft of £1200 will cost you £1.71 a day, £53.01a month. Although this will go up as the fee’s of £1.71 mount up, soon you will owe £1207 which put the daily fee up to £1.72 and so on always accumulating more debt. The average person on benefits can have an overdraft as high as £3000 which would be a daily fee of £4.28 and a monthly charge of a staggering £132.68 all taken out of you incomings before you can buy food and heat.
This change in fee means that if you are a poor family living in your overdraft you will be paying daily for your fees. This money will be removed as soon as money enters your bank. Those on benefits will potentially have their benefits paid in at midnight to have them removed as fees by 1am. No transactions are allowed to be processed between 12-1 in order to allow the bank the opportunity to remove their fee’s. In addition to this change previously Lloyds bank charged overdraft fee’s two months behind so for November and December you will be paying two sets of fee’s, the daily charge and the backdated old monthly charge from October and September.
Many people may say take a loan and pay off your overdraft for a cheaper monthly fee. We are talking about the poorest families. The ones who don’t have the credit rating in order to qualify for a loan. Lloyds bank is forcing hundreds of families into poverty. Poverty where they can’t afford heating in the coldest months, or food on the table. Lloyds bank has turned into a real-life Ebenezer Scrooge. I can only pray for three ghosts to visit the fat bank executives this year with their festive spreads and warm houses.
The big question here is how as a society we can allow people to be treated like this. As a nation, we are charitable giving generously to causes such as Comic Relief and Children in Need now it is time to look after our own.
What can we do?
After watching Martin Lewis last night I am pleased to say The Financial Ombudsman will make the bank give your money back if the charges have caused you to go into financial difficulty causing you to go into poverty and not be able to pay your bills. I urge you to contact them if you are having problems.
As a customer who is not directly affected but, still believes this practice is wrong I have switched my bank account. I even got £100 for switching. It is time to stand as a society and stop banking officials starving our kids.