Lloyds Banking Group (which includes Halifax and Bank of Scotland) is changing the way it charges customers who go over their overdraft limit. The changes mean that millions of customers pay less or better still, they won't go into their overdraft limit.
Lloyds says that the changes will affect about 18 million customers of the bank when the changes come into effect in November 2017.
What changes are coming
- Customers will pay 1p a day per £7 borrowed on arranged overdrafts.
- No more unarranged overdraft fees and charges.
- Accounts get a fee-free zone eg £25 on Lloyds accounts (see bank for full details)
- Missed payments will not incur a fee
- Text messages will be sent to customers who have a low bank balance
Will any customers be worse off by the changes?
Yes. Unfortunately, the changes to the bank charges will affect around 2 million customers who may be worse off as a result of the changes. They may find themselves paying more charges and interest. You should check to see how the changes will affect you and if necessary, take steps to cut your overdraft or move to a new bank account with 0% overdraft fees