Bailed-out Lloyds slams up overdraft fees by huge 17%
LLOYDS Bank’s fees for authorised overdrafts are rocketing by almost 17%.
From January customers will pay 1p on every £6 owed instead of every £7 – a yearly equivalent of 60% interest and more than the credit card rate for people with poor credit histories.
The bank – bailed out with £20.3billion of taxpayer cash in 2008 – will charge someone who dips into the red by £1,200 for seven days each month £153.72 a year. This compares to £32.48 with First Direct and £48.16 with Nationwide.
Lloyds said: “Having been the first to remove all fees and charges for unarranged overdrafts, customers continue to benefit from this and the cost of arranged overdrafts remains simple and transparent.”
Personal finance expert Andrew Hagger said: “That comes at a huge cost. These charges are very steep.”