2 months ago I received a call from my Lloyds TSB branch trying to get me to change to a Lloyds Premier account from a classic account as I have an overdraft of £3.5k and supposedly the interest rate and fees would be cheaper.
I declined as most of the services offered by the account were either useless to me or I had shopped around and got far better deals elsewhere. For example Home Serve came free with my home insurance and I got 15 months full European breakdown cover for £70.
At the end of May I got a call on my mobile, which I didn't answer, and then my works land line asking me to come into the branch to discuss my overdraft as it was up for renewal. My overdraft was not due to be renewed until September 11 according to my bank statement.
Obviously it's quite embarrassing getting a call like this at work in front of colleagues. So I reluctantly agreed to go into the bank on my day off to find out why it was so urgent that I had to come into the branch. I was told that I had to see them face to face as the FSA has told them to review all large overdrafts.
I have a number of loans and credit cards outstanding at the moment and manage to pay them on time and have done for a while. So I am not looking for any more loans or take on any more debt or costs esp. at far higher rates than I have now.
I got to the bank I was taken into an office by a Senior Account Manager who wanted to know my outgoings and debts so she could work out if I was eligible for a loan. I keep track of this monthly on spreadsheets
When I explained that I wasn't interested, I was told that the Premier account would be better due to the size of my overdraft as it has £500 interest free overdraft and 10.5% APR plus I would get lots of services. But the account costs £25 per month.
I said I was happy enough with the account I had and declined. I was told that if I didn't take the new Premier account I would be put on a 'plan' and my overdraft would not be renewed for another 12 months.
If I took the new Premier account, my overdraft would be renewed and I wouldn't have to speak to them again for another 12 months.
The Premier account with the fee and interest works out roughly the same as what I would pay in interest and charges with my classic account.
I am not in a position to pay back my overdraft until a loan clears next year or I get a better more paid job.
I agreed to the Premier account on the understanding that my overdraft would be renewed for another 12 months.
So I received my bank statement today which still tells me that my new Premier account is still up for renewal in September 11 and when I phoned telephone banking tonight there is no notes on the account and confirmed my account will be renewed again in September.
Has anyone else had this experience?
I am thinking this is the new PPI type scandal where the banks are forcing people to take products they don't want or need so that they can keep their credit facility.
Any advice is much appreciated as I am raging and it is yet another issue I have had with LTSB but unfortunately I am stuck with them for the moment.