Lloyds TSB, Halifax disregard their customers

Business banking news review: week ending 20 June 2013

Bad news this week as not one but two major banking providers go forward with plans to completely disregard the needs of their customers.

Hold on to your hats for this news: shedloads of Lloyds TSB customers are getting left out in the cold when it comes to using their old bank branches, thanks to the more than 600 Lloyds branches that are getting spun off from the firm thanks to a ruling from the European Commission. Some 632 branches, which will be trading under the name TSB, will no longer allow Lloyds customers to do their banking – and on top of that, they’ll charge a £5 fee every time a former customer uses the bank to reduce their credit card balances or pay in cash.

The worst part is that too many Brits probably have absolutely no idea of this incoming change. I know I certainly didn’t before I found out about this particular bit of nasty news; well, I knew there were some 600 Lloyds branches getting spun off but I didn’t know the bank would be completely disregarding the needs of their erstwhile customers!

This could cause some serious problems for anyone living in an area where the next-closest Lloyds TSB branch is miles away. Suddenly you just can’t go for a short walk to get your banking business done – and if you live in an area with poor public transport links you’re going to be hard-pressed to get your banking taken care of, aren’t you?

Of course it’s not just Lloyds TSB that is completely lacking in any sort of compassion for their customers; this week it became clear that Halifax is pulling the wool over the eyes of its own customers. The bank is targeting its cash ISA and fixed rate bond customers that are nearing the end of their term by allegedly moving their savings into products that have such a much lower yield than they were originally promised to receive, and in some instances the interest rates on these ‘bait-and-switch’ savings accounts are as much as 25 per cent less!

The worst part is that unless you as a saver stay atop your bank and keep a close eye on what they’re doing to you, you might end up getting taken to the cleaners even more as many of these new accounts only allow you to move your money within a very small window of time. If you miss your deadline you could end up being subject to a penalty, and that typically means forfeiting your right to several months’ worth of interest – sometimes as much as an entire year’s worth!

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