Lloyds TSB business customers incorrectly charged for three years

| September 5, 2012 | 0 Comments

Dan Hyde

18:37 EST, 4 September 2012


03:21 EST, 5 September 2012

Business customers with Lloyds TSB have been incorrectly charged for routine transactions for three years.

Since 2009, Britain’s biggest bank has been unfairly taking up to 40p each time money is moved between customers’ different current accounts.

Customers were told these transactions would be free, and many were left unaware of the error.

Lloyds TSB sign reflected in a window

Bad reflection: Lloyds has more than one million small business customers but says the number affected is ‘small’

Bills, standing orders and simple transfers were all hit by the bungle. In an extreme case, someone who made one transaction a day could be due £440 in refunds as a result.

Lloyds has more than one million small business customers but says the number affected is ‘small’.

Hundreds of shopkeepers, plumbers, and other business owners are thought to have been hit.

In addition, some customers at Bank of Scotland, owned by Lloyds, have also been incorrectly charged.

Lloyds admitted the error in a letter to customers last month. The bank
insists only business customers who pay for their current account

Lloyds offers 18 months’ free banking to newly formed
companies, and six months for existing businesses switching from another
bank. After that it applies charges ranging up to £45 a month, meaning
loyal customers are likely to be worst affected.

also forgot to levy some charges on the accounts altogether, which it
claims means the overall extra bill faced by customers has been

The vast majority of charities and clubs, which typically use a different type of business account, escaped unharmed.

The issue stemmed from a ‘systems error’ in setting up the accounts, a Lloyds spokesman says.

are some customers who have not been charged certain fees on their
accounts, but who have also been incorrectly charged some other fees,’
he adds.

‘We will refund
all fees that have been overcharged and we will, of course, not seek to
reclaim any of the fees in cases where we have undercharged.’

Filed Under: finance news

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