O/d interest rates

[nelly55]

Very small od secured ,has anyone else had the bomb shell of lloyds going to charge 10.85% from May.

 

[Werzle]

Very small od secured ,has anyone else had the bomb shell of lloyds going to charge 10.85% from May.

Isnt that for going over the agreed OD?

 

[nelly55]

No just rang them the lady said it’s 6.20 %plus base until May then 10.85% she said it’s the same for all o/d .Total bloody rip off as a Rate was 2%.So do they want rid of O/ds ,rid of smallO/d s or what.Anyone had a letter from another bank doing the same.Told her it was a joke seeing as the tax payer bailed them out.

 

[SilliamWhale]

I think there's some confusion. Planned and negotiated overdraft rates should be different. Tell he you want to speak to ag banking specialist.

 

[C.J]

Very small od secured ,has anyone else had the bomb shell of lloyds going to charge 10.85% from May.

Me too - followed by another letter today telling me I haven't paid in for 35 days

 

[nelly55]

No agri manager seems I’m not big enough ,this needs reporting to Boris it’s one hell of a hike.So secured small lending is matching credit card interest nearly.Yes letter states 10.85% for unauthorised but that’s not what was said to me .

 

[SteveHants]

No agri manager seems I’m not big enough ,this needs reporting to Boris it’s one hell of a hike.So secured small lending is matching credit card interest nearly.Yes letter states 10.85% for unauthorised but that’s not what was said to me .

Reporting to Boris?
Boris has made it clear in many speeches that he wants less regulation on banking not more.

 

[d williams]

No just rang them the lady said it’s 6.20 %plus base until May then 10.85% she said it’s the same for all o/d .Total bloody rip off as a Rate was 2%.So do they want rid of O/ds ,rid of smallO/d s or what.Anyone had a letter from another bank doing the same.Told her it was a joke seeing as the tax payer bailed them out.

Personal banking or business???

 

[nelly55]

Business

 

[Goweresque]

Its probably related to the changes in OD rates for domestic banking customers. Instead of having negotiated rates with people who arrange overdrafts, and a system of fees for those who use an unauthorised OD (ie £30 to send you a letter saying you've gone into the red, and daily fees while you are overdrawn) now everyone will pay the same OD rate, authorised or not. Which is great for people who were constantly dipping into the red and getting letters all the time, they'll be quids in. Whereas people who actually arranged their OD will now pay more.

https://www.bbc.co.uk/news/business-51329091

 

[Chasingmytail]

Yes my accountant confirmed this the other day. I was annoyed that the bank manager offered to double our overdraft. I think not. Looking at options of remortgaging away from Lloyds for certain.

 

[nelly55]

I wonder if they will loose a lot of customers ,as it is going to hit all customers and all businesses.

 

[Jon 3085]

Also had this last year,unsecured overdraft. 1.99% arrangement fee too.?

 

[jimred]

I wonder if they will loose a lot of customers ,as it is going to hit all customers and all businesses.

Most of the banks are doing something similar.

 

[farmerm]

Fortunately we are now entering a new prosperous golden age of agriculture where no UK farmer will ever need to use an overdraft....

 

[icanshootwell]

Very small od secured ,has anyone else had the bomb shell of lloyds going to charge 10.85% from May.

A minimum £500 per year charge as well, what ever is the amount, if its above 50k then its another £100 every 10k.

 

[Exfarmer]

Its all about sheltering those people who use unauthorised overdrafts. They were paying penalty rates , but it has been decreed that this is unfair to them.
so the pain of there poor housekeeping is to be felt by all. The reason being , these people are very likely to completely fail to repay, which is why they get penalty rates.
the only way round is to negotiate a loan to cover the complete borrowing requirement, amd kerp it in your current account.

 

[Salt'n'Pepper]

Meeting our banker on Thursday(Clydesdale Bank)-anyone with recent experience of their attitude or rates going forward?
Have up until now been fair/reasonable to work with.

 

[jendan]

Yes my accountant confirmed this the other day. I was annoyed that the bank manager offered to double our overdraft. I think not. Looking at options of remortgaging away from Lloyds for certain.

Dont remortgage with Barclays! They will demand it back within 18 months.

 

[Werzle]

Its all about sheltering those people who use unauthorised overdrafts. They were paying penalty rates , but it has been decreed that this is unfair to them.
so the pain of there poor housekeeping is to be felt by all. The reason being , these people are very likely to completely fail to repay, which is why they get penalty rates.
the only way round is to negotiate a loan to cover the complete borrowing requirement, amd kerp it in your current account.

Seems to me all its going to do is stifle growth. I do think banks are pushing for people to take out long term loans rather than use overdrafts which is a pain for folks dipping in and out of overdrafts for short periods. Alot of low risk farmers havent got a dedicated manager anymore and end up with whoever answers the phone in a business manager call centre, these business managers have a very limited understanding of agriculture and farming seasons.