January 2020

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56 Robin Lane qQqQq1QQqQ1q1QqQqQ1Q

Wellingborough
Northamptonshire
NN8 4TJ

Account number ending: 9168

Your arranged overdraft charges Your interest rate will be

49.9% EAR variable
are changing There are no other fees or
charges for using your
Dear Mr Day
arranged overdraft
From 6 April 2020, we’re making changes to the way we charge for using your arranged
overdraft. This is because new regulations mean all banks will charge a single interest rate for See the enclosed Overdraft
arranged overdrafts to make it easier to compare the costs. The interest rate for your arranged Guide for more information
overdraft is based on how you manage your account and on the credit information we hold about about your current charges
you – it will be 49.9% EAR / 0.111% daily variable. and new EAR.
No other overdraft fees or charges
We won’t charge you for unarranged borrowing, or for refusing a payment if there is not enough
money in your account, where other banks might. I’ve enclosed an Overdraft Guide that shows
how your current arranged overdraft is calculated and explains EAR – Equivalent Annual Rate. If you have any questions
Your interest-free amount will stay the same Visit us in branch
Your interest-free amount isn’t changing – the table below shows you how much you’d pay using
an example interest-free amount of £1,500. Go to lloydsbank.com
How your arranged overdraft charges will change with your new 49.9% EAR and an
example interest-free amount of £1,500 Call 0345 124 1332
Lines are open 7am to 11pm,
The table below shows you how much it will cost to borrow based on different arranged 7 days a week.
overdraft amounts.
Example arranged The current The daily cost Difference Turn over for
overdraft amounts daily cost from 6 April in daily cost more details
£100 £0.00 per day £0.00 per day £0.00
£500 £0.00 per day £0.00 per day £0.00
£1,000 £0.00 per day £0.00 per day £0.00 Plus information on
the Current Account
£2,000 £0.71 per day £0.55 per day £0.16 less Switch Service
£4,000 £3.29 per day £2.77 per day £0.52 less

Your interest charges will come out of your account each day
You’ll still pay at the end of each day you use your arranged overdraft and we’ll continue to send
text alerts to help you stay on top of your finances. I’ve included information about changes to
text alerts in the Overdraft Guide.
If you are in a fee-free period or on a repayment plan it will stay the same
The changes to arranged overdrafts will happen on 6 April, but if you’re not currently being charged for using your overdraft because you’re in a
fee-free period or you’re on a repayment plan, the new interest charges won’t apply until your arrangement comes to an end.

Make sure your account is still right for you

We’ll update your arranged overdraft agreement and current account terms and conditions from 6 April to reflect these changes and also
change references to daily arranged overdraft fees and fee-free amounts to interest and interest-free amounts. You can get an updated copy
of your current account terms and conditions at lloydsbank.com/current-accounts or ask in branch.
If you think these changes mean your account no longer meets your needs, you can choose to close it. If you decide to do this, you’ll need to
repay your overdraft balance if you have one. There’s no charge for closing it and you can do so any time before the changes take effect on
6 April 2020. If we don’t hear from you by then, we’ll take it to mean you accept the changes. To ask about other accounts or if you have any
questions about this letter, please contact us using the details on the front.
Yours sincerely

Darren Tong
Head of Personal Current Accounts

About the Current Account Switch Service

You can refer to the Current Account Switch Service to switch your current account from one bank or building
society to another in 7 days in a simple, secure and stress-free way. For more information please read the
Switching Current Account guide which can be found at lloydsbank.com/switch and FAQs at
www.currentaccountswitch.co.uk

If your vision is impaired – please contact us for an alternative format

If you need
extra help such as large print, Braille or audio CD.
If your hearing or speech is impaired – you can contact us using the Next Generation Text (NGT) Service or via Textphone on 0345
300 2281 (lines are open 24 hours a day, 7 days a week). If you’re Deaf and a BSL user, you can use our SignVideo service at
lloydsbank.com/signvideo

If you need to make a complaint – you can visit your local branch or call 0800 072 3572 or 01733 462 267. Textphone
0800 056 7614 or 0173 334 7500 if you have a hearing impairment. Find out more at lloydsbank.com/contactus
If you need
When you call us – your call may be monitored or recorded in case we need to check we have carried out your instructions correctly
to tell us and to help improve our quality of service. Not all telephone banking services are available 24 hours a day, 7 days a week.
something
Overdrafts – subject to application and approval and repayable on demand. This means we can ask you to pay
some or all of it back at any time.
Things
Fair lending – we adhere to The Standards of Lending Practice which are monitored and enforced by the LSB:
you need www.lendingstandardsboard.org.uk
to know
Keeping your money protected – eligible deposits with us are protected by the Financial Services
Compensation Scheme. We are also covered by the Financial Ombudsman Service.

Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065. Lloyds Bank plc is authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.
This information is correct as of November 2019 and is relevant to Lloyds Bank plc products and services only.
Overdraft Guide
From 6 April 2020 when we charge you for using your arranged overdraft we’ll charge a single rate of interest each day instead of the
different daily fees you pay now that are based on how much you borrow. Below shows how the current daily fee is calculated and your
new interest rate.

How we currently calculate your daily fee From

6 April 2020
Up to £1,250 Between £1,250 and £2,500 Over £2,500
a single EAR rate
1p for every full £6 1p for every full £7 1p for every full £8 49.9%
More about EAR
Your new rate is calculated using an Equivalent Annual Rate (EAR). This is the actual annual interest rate of an overdraft. This means you
are charged over the year based on how often and how much you are overdrawn by, and the effect of compounding it – charging interest
on interest already charged. This does not include any other fees and charges.

There is a useful calculator at lloydsbank.com/overdrafts so you can see how much your daily interest charge will be based
on how much of your arranged overdraft you have used.

Overdrafts are intended to be used over a short period of time. Being in your arranged overdraft for a long time may mean you pay a lot
in interest, so if this happens, please consider whether you can reduce your overdraft and contact us if you would like any help.

Independent advice
If you’re concerned that these changes mean you won’t be able to make a repayment please speak to us. We've also included some
independent services you can speak to if you need advice or find yourself in financial difficulty.

Citizens Advice StepChange National Debtline

Call 03444 111 444 Call 0800 138 1111 Call 0808 808 4000
www.citizensadvice.org.uk www.stepchange.org www.nationaldebtline.org

Text alerts
If we have your mobile number, we will send text messages to help you manage your balance and minimise charges.

Arranged overdraft alerts Unarranged overdraft alerts

• You have less than £50 in your account • You are within £50 of using an unarranged overdraft
• You're about to use or you've started using your • You need to pay money in to cover a standing order
arranged overdraft • We refuse a payment
• We have started to charge you for using an arranged • You’re about to use or have started using an
overdraft. unarranged overdraft.
To stop these alerts text STOPA to 61112. To stop these alerts text STOPU to 61112.
To opt back in text STARTA to 61112. To opt back in text STARTU to 61112.

You can stop all overdraft alerts by texting STOP to 61112 or to opt back in, text START to the same number. Stopping alerts may mean
you incur avoidable costs. Your preferences to opt in or out of alerts will be applied to all your current accounts. You can check if we
have a valid mobile number for you, or set one up, through Internet Banking, in branch or by calling us.
To find out more please visit lloydsbank.com/alerts
Text message alerts are sent from 8am UK time, 7 days a week including Bank Holidays. This is a free service for all eligible current
account customers. We won’t charge you for this service, but if you receive texts while abroad, your network service provider may
charge you.
Your money is protected by the Financial Services Compensation Scheme
Basic information about the protection of your eligible deposits
Eligible deposits in Lloyds Bank plc are protected by: The Financial Services Compensation Scheme (“FSCS”)1
Limit of protection: £85,000 per depositor per bank2. The following trading names are part of your bank: Lloyds Bank, Mayfair Private
Banking, Lloyds Bank Private Banking and Scottish Widows Bank. Some savings accounts under the Charities Aid
Foundation brand name are also deposits with Lloyds Bank plc.
If you have more eligible deposits at the same bank: All your eligible deposits at the same bank are “aggregated” and the total is subject to the limit of £85,0002
If you have a joint account with other person(s): The limit of £85,000 applies to each depositor separately3
Reimbursement period in case of bank’s failure: 20 working days4
Currency of reimbursement: Pound sterling (GBP, £) or, for branches of UK banks operating in other EEA Member States, the currency of
that State.
To contact Lloyds Bank plc for enquiries relating to your account: You can visit one of our branches, call us, go online or write to us at: 25 Gresham Street, London, EC2V 7HN
To contact the FSCS for further information on compensation: Financial Services Compensation Scheme, 10th Floor Beaufort House, 15 St Botolph Street, London, EC3A 7QU
Tel: 0800 678 1100 or 020 7741 4100 Email: ICT@fscs.org.uk
More information: http://www.fscs.org.uk

Additional Information
1
Scheme responsible for the protection of your eligible deposit – Your eligible 3
Limit of protection for joint accounts – In the case of joint accounts, the limit of £85,000
deposit is covered by a statutory Deposit Guarantee Scheme. If insolvency of your applies to each depositor. However, eligible deposits in an account to which two or more
bank should occur, your eligible deposits would be repaid up to £85,000 by the persons are entitled as members of a business partnership, association or grouping of a
Deposit Guarantee Scheme. similar nature, without legal personality, are aggregated and treated as if made by a single
2
General limit of protection – If a covered deposit is unavailable because a bank is depositor for the purpose of calculating the limit of £85,000.
unable to meet its financial obligations, depositors are repaid by a Deposit Guarantee 4
Reimbursement – The responsible Deposit Guarantee Scheme is the Financial Services
Scheme. This repayment covers a maximum of £85,000 per bank. This means that all Compensation Scheme, 10th Floor Beaufort House, 15 St Botolph Street, London,
eligible deposits at the same bank are added up in order to determine the coverage EC3A 7QU. Tel: 0800 678 1100 or 020 7741 4100 Email: ICT@fscs.org.uk. It will repay your
level. If, for instance a depositor holds a savings account with £80,000 and a current eligible deposits (up to £85,000) within 20 working days until 31 December 2018; within 15
account with £20,000, he or she will only be repaid £85,000. working days from 1 January 2019 until 31 December 2020; within 10 working days from 1
This method will also be applied if a bank operates under different trading names. January 2021 to 31 December 2023; and within 7 working days from 1 January 2024
Lloyds Bank plc also trades under those trading names detailed above. This means onwards, save where specific exceptions apply.
that all eligible deposits with one or more of these trading names are in total covered Where the FSCS cannot make the repayable amount available within 7 working days, it will,
up to £85,000. from 1 June 2016 until 31 December 2023, ensure that you have access to an appropriate
In some cases eligible deposits which are categorised as “temporary high balances” amount of your covered deposits to cover the cost of living (in the case of a depositor
are protected above £85,000 for six months after the amount has been credited or which is an individual) or to cover necessary business expenses or operating costs (in the
from the moment when such eligible deposits become legally transferable. These case of a depositor which is not an individual or a large company) within 5 working days of a
are eligible deposits connected with certain events including: request. If you have not been repaid within these deadlines, you should contact the
Deposit Guarantee Scheme since the time to claim reimbursement may be barred after a
a. Certain transactions relating to the depositor’s current or prospective only or main certain time limit. Further information can be obtained under http://www.fscs.org.uk
residence or dwelling;
Other important information – In general, all retail depositors and businesses are covered
b. A death, or the depositor’s marriage or civil partnership, divorce, retirement, by Deposit Guarantee Schemes. Exceptions for certain deposits are stated on the website
dismissal, redundancy or invalidity; of the responsible Deposit Guarantee Scheme. Your bank will also inform you of any
c. The payment to the depositor of insurance benefits or compensation for criminal exclusions from protection which may apply. If deposits are eligible, the bank shall also
injuries or wrongful conviction. More information can be obtained under confirm this on the statement of account.
http://www.fscs.org.uk

Financial Services Compensation Scheme exclusions list

A deposit is excluded from protection if:
1. The holder and any beneficial owner of the deposit have never been identified in accordance with money laundering requirements. For further information, contact your bank.
2. The deposit arises out of transactions in connection with which there has been a criminal conviction for money laundering.
3. It is a deposit made by a depositor which is one of the following: credit institution, financial institution, investment firm, insurance undertaking, reinsurance undertaking, collective
investment undertaking, pension or retirement fund1, public authority, other than a small local authority.
For further information about exclusions, refer to the FSCS website at www.FSCS.org.uk
1
Deposits by personal pension schemes, stakeholder pension schemes and occupational pension schemes of micro, small and medium sized enterprises are not excluded.

Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065 Lloyds Bank plc is authorised by the
Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278
This information is correct as of November 2019 and is relevant to Lloyds Bank products and services only.