Lloyds TSB has recently been advertising a grace period for customers who go into unauthorised overdraft. But Which? research reveals that several of the bank’s rivals already offer a better grace period.
The TV advertisement states that current account customers who dip into the red but rectify their deficit by 3.30 pm on the same day will not be charged overdraft fees. However, customers of other banks, including Halifax, which is part of Lloyds Group, have until midnight to correct their account position.
First Direct’s cut-off is 11.15 pm, while Nationwide will not penalise account holders who are out of their unauthorised overdraft by 8pm and Norwich and Peterborough customers will have until close of business (at 5pm).
Overdraft charges ‘too high’
Which? advocate Chris McBride said: ‘It’s strange that Lloyds would promote a grace period that is worse than those offered by many of its rivals. Grace periods can help customers who switch money between accounts, but not everyone can do that. For those living on the breadline, grace periods are of little use. We still think overdraft charges are too high and are campaigning for the government to ban unfair charges.’
See the Which? overdraft campaign guide for more information..
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