The bank is changing the way it charges customers who go into the red from 2 October.
Lloyds is introducing a free planned overdraft amount of £25 on Classic accounts and £50 on Silver accounts. Meanwhile it is increasing the free overdraft on premium accounts.
The bank is increasing the monthly overdraft usage fee by a fifth, from £5 to £6. It's also increasing the interest rate charged by up to 24 per cent. That's on the £25-a-month Premier account.
The bank claims its move will "help customers". That is simply not true. Those that need to go into the red will end up being charged much more. If you have an account with the bank, October could be the time to consider switching to a rival.
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