I have recently received a letter from LLoyds TSB to inform me that as I exceeded my overdraft limit for 2 days, I will be charged £45!!!! £15 monthly charge plus 2 x £15 daily charges. I accept that I was in the wrong and understand that I will be charged for it but £45 for 2 days.....Is this reasonable? I rang them and was basically told tough, there was nothing they could do and to pay up. To be honest, I can't afford this charge and will probably end up over my limit again as they will take the charge direct from my account. They won't increase my overdraft to compensate for my shortfall either. Does anyone have any suggestions of what to do or do I just have to roll over and accept it?

Many Thanx

One option is to roll over and accept it.

Another option is to start using another bank and tell them that you dispute the charge and will not be paying unless they put the matter before a magistrate for him/her to decide its validity. The second option is only realistic if you can pay off your overdraft (less the charges) and manage with whatever another bank will offer a new customer.

A third option is to write to say that you dispute the charge but stay with the bank and, once you are in a better situation, try to reclaim the charges through a court.

Thanks for your reply. I'm not in a position to pay off my overdraft at the moment so think I will have to go with the 3rd suggestion. I will be sending a strongly worded letter though in the meantime.

Many thanks
Katkins

Dear katkins

What do you mean by ...."Is this reasonable?" The charges are clearly stated in the link below AND are post the furore over bank charges and reclaiming them. The banks said they would be transparent and certainly by implication said they were going to introduce charges that would stick. Did Lloyds draw your attention to the charges at any stage?

The charges are in black and white and they've told you over the phone that they won't budge. You are not in a position to move your account. You are going to write them a strongly worded letter which bearing in mind the previous sentence will have no effect. Now I imagine this letter will stay on your file and behind the scenes in the future, which none of us can foretell, may or may not be taken into consideration for something or other in a negative way. I HAVE NO IDEA but as the letter's not going to get you all or part of your money back, why send it?

http://www.lloydstsb.com/rates_and_charges/current_account_charges.asp#overdraftcharges

... another option is to write to them thanking them gratiously for mentioning the exhorbitant charges in their terms and conditions.

If received wisdom is that katkins writes a letter I think a civilised couple of lines along your suggestion steam but leaving out the word "exhorbitant" would at least "do no harm". Even better advice than your earlier advice - now you're cooking with gas!