Lloyds overdraft fee alert

LLOYDS and Halifax customers with large overdrafts could see their bills treble when the bank overhauls its fees on November 2.

As well as scrapping costly unauthorised overdraft fees, the bank is changing the way it charges customers who stay within an agreed overdraft limit.

But the move will leave one in ten people worse off.

Currently there are different fees and interest rates across different brands within the group. From November all accounts will charge 1p a day for every £7 borrowed. One Money Mail reader who has a £1,950 overdraft with Lloyds says her charges will treble from £32 to £86 a month. That’s equal to an interest rate of 52 pc.

A spokesman for Lloyds Banking Group says: ‘Our new approach to overdrafts is simple and clear, giving customers more control of their overdraft borrowing and how they manage their finances.’