Lloyds TSB, the subsidiary of the
UK’s largest retail bank Lloyds Banking Group, is revising its
overdraft fee structure for all of its existing and new personal
current account customers from 2 December.
Almost 70% of customers who use an
unplanned overdraft will pay less than half of what they currently
pay, the bank said.
Go deeper with GlobalData
Among the changes in force is a new
fee-free and interest-free ‘buffer’ zone of £10 ($15) for both
planned and unplanned overdrafts, a £5 monthly usage fee for using
an overdraft down from £15, and the right to use the bank’s mobile
banking service free of charge.
The Office of Fair Trading, the UK
government department charged with enforcing consumer protection
and competition law, has called on the country’s banks to change
their policies regarding unauthorised overdrafts within the next
two years, including the right for customers to opt out.
The bank’s sister brand, Halifax,
last year changed its overdraft fee charging structure.
