In a move which will cause many consumers to sit up and take notice it has been announced that Lloyds Bank is the worst offender when it comes to charging customers for brief dips into the red. A survey found that a Lloyds TSB Classic Plus account holder who over ran their overdraft limit by £50 for just two weeks would receive a bill for £195!

This compares with the likes of HSBC (£25.10), Barclays (£30.52) and Alliance and Leicester (£95) putting Lloyds firmly at the top of the league. It also begs the question as to whether Lloyds has most to lose if the claim against unfair bank charges is rubber stamped by the courts over the next few weeks. We could literally be talking about repayments which would total billions of pounds, but also put an end to ‘free’ banking - if ever such a thing existed.

The regulator also queried why so many banks were not more upfront and clear about their charges when communicating with customers. To be fair this is something which is sector wide, not just a Lloyd’s issue, but one which the regulator has threatened to change unless the industry reacts in a positive manner.

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