Martin Lewis sends 'warning' to Halifax and Lloyds Bank customers

Martin Lewis says he has a "warning" for Bank of Scotland, Halifax and Lloyds customers. The BBC Sounds podcast and ITV star, who is a Martin Lewis Money Show said: "Warning: Lloyds, Halifax, Bank of Scotland customer? It could be about the increase your overdraft to 50%. Full help and who's impacted here..."

"Ouch," a Twitter/X user wrote. Twitter/X user Jay said: "This should be criminal. Absolutely outrageous behaviour from the institutions that were bailed out and help by the taxpayers they are now screwing."

"I've just a letter saying the interest rate on my Halifax overdraft fee is going down to 19% from 39%! Never used it, had no idea it was such a high rate. Shocking really. Letter said they assess it every year yet this is the first letter in years I've had about it," a third said.

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Money Saving Expert explained: "If your rate is going up, you'll be given 60 days' notice of the change – and your rate will rise from August 2024. In this scenario, you'll first be put on a 34.9% rate for six months to "limit the impact" of the increase; after that, your rate will rise again to 39.9% or 49.9%.

"If your rate is going down, you'll be given seven days' notice, with the lower rate coming into effect after that. The Group told us it started writing to affected customers in mid-May." Andrew Hagger, personal finance expert from MoneyComms, said a 49.9% interest charge was more often associated with sub prime credit card lenders and for people with poor credit records.

A Lloyds Banking Group spokesperson said: "We are writing to our customers to let them know we’re introducing new interest rate tiers on our overdrafts. The changes mean many will continue to pay the same or less than they do today, while some may see an increase."