Martin Lewis' MSE sends warning to every Lloyds, Halifax and Bank of Scotland customer
Millions of Lloyds, Halifax and Bank of Scotland customers are being warned about possible changes affecting their bank accounts. Some customers could see changes to overdraft rates from January 31.
Martin Lewis' Money Saving Expert (MSE) has urged customers to ensure they understand the changes and how they might impact them if they use an overdraft. They explained all Lloyds, Halifax and Bank of Scotland customers would be moved to a rate of either 19.9%, 29.9%, 39.9% or 49.9%.
They said most would remain on the 39.9% rate. MSE explained: "If you have an overdraft with Lloyds, Halifax or Bank of Scotland, the interest rate you're charged for using it could be going up from Friday, January 31 as part of a shake-up announced last year.
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"Lloyds Banking Group, which owns all three brands, said most customers would be charged the same or less – but others will pay more, and some Club Lloyds customers will see their rate nearly double, from 27.5% to 49.9%.
"The changes have been rolled out in stages, as follows: "If your rate is going up, you will have had an increase in August 2024 and you'll now see a further rise on Friday, January 31 2025. Those whose rates were being increased were first put on a temporary 34.9% or 44.9% rate in August 2024 in order to "limit the impact" of the overall rise.
"Those temporary rates are now expiring – depending on which one you were on, your rate will rise again to either 39.9% or 49.9% on Friday, January 31. If your rate is going down, this will have come into effect last year. The Group told us it started writing to affected customers in mid-May 2024 to give them seven days' notice of the change."