17-May-2008

Cash point problems and bank charges

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I am disgusted with the way that Lloyd's TSB have treated me as a customer. I have been banking with Lloyd's TSB for nearly over 10 years and have had no problems with them until recently.

I received a new cash point card from them only to find that it wouldn't work on the usual cash point machines that use. After contacting the bank, they informed me that as from now on my account cash point card could only be used at Branch cash points. If I wanted I could get a chip and pin card which would allow me access to my money wherever I wanted.

I promptly agreed and waited for my card. When that came, I still couldn't use it at the usual cash point machine and when I used it for my shopping I had to sign my name on the back of the receipt. So much for chip and pin! I contacted the bank yet again and was told that although I could use this card at chip and pin facilities, I could still only get my money from branch cash points. Not much use if you need to check your finances and the nearest bank is 15 minutes away from the shop.

I cut my card up and decided to stick the first useless cash point card that I had. Then I discovered that this card didn't work anymore because no one explained to me that you could only have one card. Oh the choices… a cash point card (that you can only use at branch cash points) or a chip and pin (which you still have to sign for the transaction).

I decided that the easiest way to get my money from Lloyd's TSB was to transfer my money via on-line banking into another bank account and that way I could access it from whatever cash point I chose. I set up a straight transfer for the sum of £12.00 and waited for the transfer. Nothing happened because the bank had charged me and they made my account overdrawn so I therefore couldn’t transfer any funds!

Then I received a letter telling me I had insufficient funds in my account to pay the standing order of £12, they were going to charge me £20 charges and also try and send the money again within 28 days! I rang the customer helpline (0845 number) and explained that I had not set up a standing order, but a one off direct payment from my account to another personal account, so why was I being charged £20?

Wait for it.......

Apparently with Lloyd's TSB, as soon as you set up any kind of transfer, be it direct debit or straight transaction, it is then classed as paying a bill it is automatically treated like a STANDING ORDER. You then get charged £20 if it doesn't go through, even if it was the bank that put you in arrears in the first place! It doesn’t matter that the details of the account you are paying into clearly state that is it a personal account (mine was labelled mums account); it is still a bill and therefore a standing order.

I personally feel that this is a misappropriation of definitions and a misleading way to run any kind of banking system. There are no warnings stating that transfers are treated as standing orders. In fact anyone who banks online will know that there are three links to send money. One is transfers and payments, the other is direct debits and the third is standing orders.

This form of charging is I feel is a cheap way to get money out of the unsuspecting customer and in my case where I have the most basic account, it’s just a rip-off.

By: Tippyairie

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Angry Engineer 01-Mar-2008 20:59

In Australia, a much bigger country transfers take place on the same day!
The uk banking system is fat, lazy, monopoly exploiting a Dickenisan model in the 21st centuary. I can wait to emigrate or set-up my own bank.

Angry Engineer 01-Mar-2008 20:53

just a few answers to replies

Quote
My advice, if you don't have the cash, don't buy things you cant afford. Then, when you do need £12 for essential shopping then transferring from one account to another would not be a problem!
Reply
I did have the money otherwise I wouldn't have tried to transfer it.Lloyd's went in and took their money first leaving me with a minus balance.

Quote
And of course you've closed your account and gone to another bank..............bet you haven't 'cos you're not actually bothered enough about it to do that?
Reply
I withdrew all my funds from my account,stopped all my money going in (wages etc) and contacted the complaints department for Lloyd's TSB.I am still awaiting a second response after they contacted me and said that they would take a little bit longer than the usual 2 weeks notification period.Close my account?I can't until they close my complaint.

How I run my account is basically the best way that suits me,be it close to the wire every month or on a strict weekly budget.Whichever way I run it,I still do not agree with Lloyd's TSB treating my account as a take the money and run operation.If they are going to take charges they should give an exact date,not leave it to a lucky dip.
I don't mind constructive criticism but it sounds to me like sid,Lloyd's tsb (what a nickname huh!),and ste pre-suppose too much and maybe work for the bank in question?

P.S.Sorry about the delay in replying,I'm just not that sad to sit on this website all the time.

tippyairie 23-Jan-2008 17:25

Online banking is a nightmare when it comes dealing with logging on or calling the remote call centre. The banks have made online banking completely un-user-friendly with questions when you call that tax the mind and which are vastly more complicated than "who wants to be a millionaire": memorable names which one juut cannot recall, memorable dates that have slipped long into the obscurity of history. Then customer numbers, then account numbers, then sort code number and the third and seventh digit of a PON number or password which you have long forgotten. Did you pass the security test? No you didn't. You would need a first class degree in mental arithmetic to do so.

Banks which insist on this nightmare I will close my account with no matter how good their interest is. The whole logging on procedure has to be simplified.

Security test failure 06-Jan-2008 13:01

What really gets my back up is the time taken to transfer funds from one account to another.

Why, if you are using the internet banking service, does it take 4 working days to move your money? Why isn't it instantaneous?

I'll tell you why. Once the banks get your money by whatever means they have a monopoly on it. They want to keep it for as long as possible. During the 4 days they use when you try to transfer it, they are manaufacturing a huge profit from your funds.

Demand payment for this interest, or instant transfer. Banks have no right to keep your money longer than necessary. There should be consumer legislation and protection on this.

Make the Banks Pay 06-Jan-2008 08:16

Hmmmm...

Wanting to transfer £12 but not enough funds? Still able to get on-line and gripe about it though!
Mind you, this internet thing and the 'puters to work it are so cheap nowadays aren't they?

My advice, if you don't have the cash, don't buy things you cant afford. Then, when you do need £12 for essential shopping then transferring from one account to another would not be a problem!

Ste 25-Dec-2007 22:06

And of course you've closed your account and gone to another bank..............bet you haven't 'cos you're not actually bothered enough about it to do that?

In fact it rather sounds like, after your 0845 phone call, you have accepted the bank's perverse explanation for what they have done, even though you describe what has happened as misappropriation and misleading. In this case actions speak louder than words. Sounds to me like Lloyds TSB told you to Get Lost and so you did!

That it then?

Sid 24-Dec-2007 21:09

As far as student accounts go I have found Natwest to be the best.

It has a £2000 interest free overdraft for the length of the account, good in case your loan is late, and the staff are really friendly if your like me and you keep loosing your card :S

If you take a few deep breaths and go into your local branch with a smile on your face I'm sure you can chat with one of the cashiers and sort out what is best for you as far as your bank goes.

Never talk to somone on the phone and make a mess of it now when you can talk to them face to face tommorow and get it all sorted then and there.

Good luck!

Ariarnia 16-Dec-2007 20:45

Free £250 overdraft? Who is kidding whom? There is no such thing as a "free lunch". Banks are the archangels of capitalism. They are untouchable. Lucifer was an archangel who fell from grace. As a consumer, I died of consumption.

Tee Bee 15-Dec-2007 18:38

try First Direct.com much better than Lloyds and you get a free £250 overdraft

cash is best 15-Dec-2007 16:10

You obviously run your account close the wire each month hence the reason for probably limiting your cards authority levels and the need for you to get your hands on just £12.

"because no one explained to me that you could only have one card...." they didn't because this is common sense.

If you were online, surely you could have seen that you didn't have £12 in the account to transfer so you're obviously not telling us something else about your account, like, 'oh yeah, I forgot about that transaction just before the attempted £12 transaction'!

I await your defence if I'm wrong.......... oh....no reply, what a surprise....

Lloyds TSB 14-Dec-2007 13:42

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Cash point problems and bank charges

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