Lloyds Bank to abolish charges for unplanned overdrafts

Fees for unplanned overdrafts are to be scrapped for the 20 million customers of Lloyds Banking Group, which includes the Halifax and Bank of Scotland.
From November this year, any customer going over their overdraft limit will face no fees at all, Lloyds said.
However, the bank may continue to block payments from the account until the overdraft is paid off.
It follows criticism of high charges by consumer groups and the Competition and Markets Authority (CMA).
The Financial Conduct Authority (FCA) is also expected to propose measures on overdraft fees within the next few weeks, as part of its inquiry into high-cost credit.
Less revenue
Previously Lloyds customers taking out unauthorised overdrafts faced interest payments at an annual rate of 19.89%, a daily charge of up to £10, the monthly charge of £6, and up to £30 a day for returned (unpaid) items.
These will all now be abolished.
Fees for missed payments from basic bank accounts will also disappear.
Lloyds said that it expected to make less money as a result of the changes, although it said fewer people now use an unauthorised facility than used to be the case.
Barclays has already abolished unauthorised lending. Since June 2014, customers cannot exceed their overdraft limit, unless they obtain permission for emergency lending.

original source http://www.bbc.co.uk/news/business-40555175