The Office of Fair Trading announced that banks are still making billions from unauthorised overdraft fees. But in a move which may surprise cynics, LloydsTSB has launched a scheme to help customers avoid going into the red, and therefore steer clear of associated penalty charges.
The bank’s new SMS alerts inform account holders if they are about to go overdrawn or have exceeded their agreed limit, giving them the opportunity to curb their spending or to top up their account. With financial fraud on the increase, the alerts will also help customers keep tabs on their accounts, so that unauthorised spending can be identified promptly.
Customers should be aware that there are 2 different SMS alerts on offer:
Customers can sign up for this experiment in mobile money management online or by calling 0845 3000 000. Instructions for those not registered for internet banking or wishing to register by text message can be found on the relevant section of the LloydsTSB website. Do bear in mind that although the text alerts could potentially save you money, the charge for the Limit Alerts service adds £30 a year to the cost of managing each account even if your account is never overdrawn. This could hardly be classed as free banking!
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