Found 27th Mar 2007
Jeez!!

Just opened up a letter from Lloyds TSB and was advised that they have upped their APR from 14% to a whopping 26.52% !!

I guess they are trying to recoup the money they lost through people claiming back their bank charges! Moving credit cards i reckon!!

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3 Comments

Save the Change could have affected it too

Original Poster

lol thats what I was thinking!

Seriously tho, surely it cannot be legal to increase the APR by so much.

Lloyds makes £4.25bn profit but no 'free banking' pledgeLast Updated: … Lloyds makes £4.25bn profit but no 'free banking' pledgeLast Updated: 11:39pm GMT 24/02/2007# Views from City analystsLloyds TSB has refused to commit to free current account banking for its customers despite making profits of £4.25bn last year.Chief executive Eric Daniels put the issue of monthly or quarterly handling fees for current accounts back on the agenda after Barclays and Alliance & Leicester both pledged to maintain Britain's 23-year-old "free banking for those in credit" system.advertisementMr Daniels, who is pinning Lloyds' growth strategy on customer service, said he would not commit to free banking because he cannot predict the outcome of an ongoing Office of Fair Trading investigation into charges on unauthorised overdrafts."If there were to be a sizable change from the OFT, how that would manifest itself God only knows but you'd think the UK would follow other markets," he said. "We will have to see when it comes."Europe and the US already impose fees on current accounts. There are currently five inquiries into the banking industry, of which overdraft charging is the most contentious.Credit Suisse estimates the industry makes £1.2bn in overdraft penalties a year. The average bank overdraft penalty charge is about £39 but the sum could be slashed to £12 by the OFT. Mr Daniels said the bank would "face challenges" from the "increasing cost of regulation".Last year, Lloyds received £652m in "UK current account fees" but it is not clear how much came from overdraft penalties.The bank recently demonstrated it was not averse to fee structures after levying £35 a year on the 1pc of credit card customers who do not use their cards much and pay off the balance in full each month. Some 4m of its 12m current account customers are already paying fees for a premium service.Lloyds' position emerged as it reported an 11pc increase in pre-tax profits to £4.25bn. Bad debt charges jumped 20pc to £1.56bn and, unlike other banks, Lloyds said its provision would rise again this year although at a "significantly lower [rate] than experienced in 2006".The bank is also losing ground in mortgages because it refuses to take a big stake in the riskier buy-to-let market. Its share of new lending was 6.3pc compared with a 9pc market share. It also faces "challenges in terms of the slower rate of growth in the unsecured consumer credit market".The final dividend of 23.5p, unchanged on last year, is payable on May 2.


Our brilliantly-selfish rich wealthy Free Market Laissez-Faire Economy where the few line their greedy fat pockets (profits) and the rest of us look at our bank statements and suffer the humiliations....:oops:..they don't call all of us cust-o-m-ers for nothing. Plenty of good profitable reasons for 'pitiful' existence. Then, there is dying and death. Cheers financial institutions.
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