Young family charged £1,000 in fees after going overdrawn… by 8p!

Daily Mail
26.10.2010
By Daily Mail Reporter

A young family has been forced to pay more than £1,000 in bank charges after becoming overdrawn by just 8p.

Angela Hannibal, 21, and Wayne Green, 23, claim they are facing homelessness after the charges from Lloyds TSB spiralled out of control.

Miss Hannibal, from Colchester, Essex, opened a basic current account with the bank when she was 15 but in 2008 it was upgraded to a ’silver’ account.

For an £8 monthly payment, the new account offered a range of benefits to the customer, such as travel insurance, mobile phone insurance and breakdown cover.

But Miss Hannibal said that after the monthly charge for the service was taken out, she was left with an unauthorised overdraft of 8p and ordered to pay a penalty of £170.

Struggling to pay her bills and the rent, Miss Hannibal offered to pay the bank charge at a rate of £30 a month.

However, she said that before the debt was paid, even more charges were added and she and her partner have now shelled out £1000 in instalments and lump sums since 2008.

The couple, who had a baby daughter Ashlyn two weeks ago, still owe £700 and the young mum said she is still being charged £10 a day for the overdrawn account, which she has not used since 2008.

Now the family are facing homelessness after Mr Green was made redundant and can no longer keep up the payments to the bank.

He said: ‘Because we have been paying so much to Lloyds and now I have lost my job, we have been struggling to keep up our rent and council tax payments.

‘So we are paying all this money out for the sake of an 8p debt which wasn’t our fault.’

The couple said they have visited Lloyds TSB nearly every week to try to find a solution but had been unable to resolve the problem.

Full article

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