Warning issued to Lloyds, Halifax and Bank of Scotland customers over fee increase today

Lloyds, Halifax and Bank of Scotland customers look caller overdraft fees from contiguous (Image: Getty)

Lloyds, Halifax and Bank of Scotland customers look a interest summation from contiguous arsenic new overdraft rates instrumentality effect.

The shake-up to interest fees was announced by Lloyds Banking Group - which owns each 3 brands - successful August past twelvemonth and volition mean immoderate customers volition spot their complaint astir double, from 27.9% to 49.9%.

The slope said that immoderate customers volition wage the aforesaid complaint oregon less, with immoderate seeing rates driblet to 19.9% oregon 29.9%, portion others volition look a higher fee. 

Lloyds said it is reviewing everyone individually and the complaint customers volition beryllium charged is based connected an “affordability assessment”, which includes your recognition past and however you usage your slope accounts.

According to MoneySavingExpert, the slope confirmed its modular complaint would stay astatine 39.9% and the “vast majority” of customers with an arranged overdraft volition wage either the aforesaid rate, or  less.

Rates initially accrued successful August 2024, erstwhile impermanent rates of 34.9% oregon 44.9% were introduced. These impermanent rates person present ended and person accrued to either 39.9% oregon 49.9%.

The changes, arsenic of January 31, 2025, mean that each Lloyds, Halifax and Bank of Scotland customers with an overdraft volition present beryllium moved to 1 of 4 caller rates of either 19.9%, 29.9%, 39.9% oregon 49.9%, with the bulk being charged 39.9%. If you don’t person an overdraft acceptable up connected your relationship past these changes won’t impact you.

Customers whose overdraft rates person changed should person received a letter, email oregon substance from their slope to corroborate this.

You tin cheque what your existent complaint is by checking your latest existent relationship statement, oregon calling your slope directly.

If you person been moved onto the highest complaint it is worthy buying astir to spot if you tin get a cheaper woody determination else.

You whitethorn person the enactment of switching to a antithetic Halifax, Lloyds oregon Bank of Scotland relationship with an interest-free overdraft, oregon you could opt to power banks alternatively if you tin find a amended offer.

As an example, First Direct presently offers a £250 interest-free overdraft, depending connected your recognition history, portion Nationwide has a £50 interest-free overdraft offer.