Board strikes back as Lloyds doubles corporate account fees
Board strikes back as Lloyds reveals plans to double fees on commercial accounts
Lloyds Bank faces backlash after revealing plans to double fees on its trading accounts.
The lender has sent letters to its customers announcing that it will increase the monthly fees for its Business Extra and Electronic Business tariffs, available to companies with more than Â£ 3million in turnover.
The move angered administrators, who accused the bank of hypocrisy for vowing to help businesses weather the pandemic while increasing charges even before Covid restrictions were lifted.
Higher fees: Lloyds has sent letters to its customers announcing that it will increase the monthly fees on its Business Extra and Electronic Business fares
A client from Southport, Merseyside, who declined to be named, said: “This is just another kick in the teeth for businesses that are already struggling, just as we are lucky to get back on our feet. ”
Referring to Lloyds’ pandemic motto “Helping Britain Recover”, the customer added: “This is a joke”.
Lloyds has revealed that the monthly account fee for Business Extra will drop from Â£ 7.50 to Â£ 15 in June.
The monthly e-business rate, for businesses that make most of their payments electronically, will drop from Â£ 12.50 to Â£ 20.
The amount charged to businesses for placing or withdrawing money at a branch, issuing or paying checks and using other services will increase by up to 60%.
Damien Moore, Tory MP for Southport, said: “I am extremely concerned about this. This should not be happening at a time when we are supposed to help businesses bounce back.
During the last financial crisis the banks were bailed out, so it’s only fair that they help rather than force customers with more fees. ‘
The All-Party Parliamentary Group (APPG) on Fair Business Banking has urged Lloyds to waive the fee.
Its chairman, Tory MP Kevin Hollinrake, said: âLloyds will be fully aware of the difficulty some companies have in switching banks, so they know that business customers are pretty much sitting ducks for these huge increases.
Lloyds’ board of directors will rightly be accused of profiting from the Covid crisis, and the APPG calls on the bank to reverse this decision.
Lloyds said: âAt the end of last year, we informed our small and medium-sized customers with turnover over Â£ 3million of a planned change in the cost of their core banking services, changes that we have postponed to 2020 due to the pandemic and this is the first increase in two years.
âThe average increase is Â£ 15 per month. For any customer who may be experiencing difficulties, we have processes in place and encourage them to contact us. ‘
Lenders are struggling to maintain profitability, in an environment of extremely low interest rates, which means they cannot make as much money from loans to clients.