Staff in branches and call centres are reporting that customers are reacting angrily to the Bank’s decision to increase overdraft charges for those with agreed overdraft facilities. A few weeks ago the Bank announced “All fees and charges associated with unplanned overdrafts will be removed”. What the Bank didn’t say, was that the majority of those customers with agreed overdrafts would end up paying for its decision. The reality is now dawning on customers who have agreed overdrafts, and that will include many members of staff, that their monthly bank charges are going to increase by up to 150% in some cases. Since the letters to customers telling them about the changes were sent out last week, members have reported customers venting their anger at the Bank’s blatant attempt to force them to tale out personal loans to avoid the massive increase in bank charges. In its submission to the Competition and Markets Authority’s Retail Banking Market Investigation, Lloyds Banking Group (page 224 of CMA Provisional finding report, October 2015) made it clear that customers with higher overdraft limits would be less likely to be offered the same overdraft limits by other banks and it knows full well that it can charge what it likes and these customers either have to accept it and pay the higher charges or take out loans instead. And that, at a time when the Bank of England is warning that the rise in personal loans is dangerously high. In a speech to the University of Liverpool’s Institute for Risk and Uncertainty, Alex Brazier, the Bank of England’s Financial Stability director, said “the increase in debt was dangerous to borrowers, lenders and, most importantly from our perspective everyone else in the economy”.
Lloyds Banking Group staff are represented by an independent trade union committed to protecting their interests and their interests alone. LTU is not affiliated to the TUC or any political party and we are free to determine and pursue the best policies for Lloyds Banking Group staff.
LTU represents members in Lloyds, Scottish Widows, Halifax, BOS and the other companies within the Lloyds Banking Group.