I just logged on to my UK bank account with LloydsTSB to find out that I have received a 75 pound fine for going into my overdraft. This charge is for ‘unplanned use of the o/d’.

This is a unreasonable fee in my opinion, especially as I went into the red as a result of an account fee and interest charge. It’s not as if I was flashing the Visa card around. I was just over 20 pounds into the red!

The fee is totally disproportionate!

I contacted the call centre to voice my concern and appeal for the removal of the fee or at the very least a reduction in this harsh penalty. I spoke to two operators but the charges will apply. I was told I could write a letter.

I later discovered that the UK Office of Fair Trading has launched a test case against banks on the topic of overdraft fees.

The BBC explains that: The OFT is asking the court to support its view that it has the right, under the 1999 Unfair Terms and Consumer Contracts Regulations, to decide if banks overdraft charges are unfair.

The banks have managed to secure an injunction which means that they do not have to respond to any appeals from customers until the case against the OFT has been decided – which could be more than 12 months away.

LloydsTSB announced 3.7billion pounds in pre-tax profits in 2007. None of the seven banks involved in the test case will disclose the amount that they generate from account charges on personal accounts but this is expected to be in the region of 4 billion pounds in 2007 alone!!

The Bank Action Group has been formed to help consumers re-claim these unfair charges. The group has been successful in claiming re-funds.

Like most people, I will have to take this charge on the chin, I don’t have time to go through the appeal process. I will pay the fee and close my account and never have anything to do with LloydsTSB again.

Tags: , bank, banks, charges, corporate, fees, greed, LloydsTSB, OFT, overdraft