The week unzipped: Lloyds TSB cuts unauthorised overdraft fees following consumer pressure

LLOYDS TSB has announced that from December it will be cutting its overdraft fees if you dip into the red without asking, after pressure from customers and banking lobby groups. However, those with authorised borrowings will have to pay a monthly fee for the first time.

All customers who use an unagreed overdraft facility will pay less under the new structure, with nearly three-quarters paying less than half what they currently pay. But authorised borrowers will now incur a 5 a month charge.

The reductions include:

• A new fee-free and interest-free "buffer" zone (10) will be introduced for both planned and unplanned overdrafts.

• The 15 monthly overdraft fee will be cut to a 5 usage fee on authorised or non-authorised borrowings.

• Customers who have an Added Value Account or Student/Graduate account with an interest and fee-free overdraft arranged will not pay the 5 fee as long as they stay within the interest and fee-free amount.

• Charge for bouncing a cheque cut to 10.

• No interest on balances in credit which currently earn 0.1 per cent.

The consumers association Which? said that, despite the cuts, it would still be expensive for Lloyds TSB customers who went into the red without permission.

Vera Cottrell of Which? said: "The fees are still high, and customers with authorised overdrafts will now have to pay 5 where they did not before."

Collision of sexes

MEN and women may continue to argue about who are the better drivers, but one area where there is a clear difference between the sexes is the type of accidents they have in their cars.

Research by women's car insurance specialist Diamond has found there are certain types of accidents in which women are more likely than men to be involved.

The list for women includes accidents in car parks, bumps on roundabouts and prangs at traffic lights, including driving into the car in front, hitting another vehicle while reversing and colliding with a wall or lamppost.

On the other hand, male motorists are more likely to have a head-on collision, crash while changing lanes, drive their car up or down an embankment or hit a crash barrier.

Women are also more likely to have their car broken into and something inside stolen.

However, men are more likely to have their car stolen outright.

Men's cars are also more likely to catch fire than women's and they're more likely to drive through a flood. Men are also more likely to claim for fuel contamination.

Shake-up for life

AXA policyholders with traditional with-profit, life, protection and pension contracts could soon be transferred to Friends Provident amid plans for Axa to sell its life business.

These will include some customers with the old Sun Life and Equity & Law investments. However, the deal will not be finalised until September, so contract holders will not see any change to their policies for the time being.

Mortgage security

BORROWERS facing mortgage difficulties are to be given greater protection from unscrupulous lenders following new rules from the Financial Services Authority governing arrears handling. The watchdog is also launching a crackdown on agents running sale and leaseback arrangements.

Customers in arrears must not be charged a monthly arrears fee where an agreement is already in place. Payments must first be allocated to clearing the missed monthly payments, rather than settling arrears charges, which can be repaid later. Repossessions should always be the last resort.

From 30 June, sale-and-rent-back customers will be better shielded from firms using aggressive or unfair methods. Exploitative advertising and high-pressure sales techniques are to be banned along with emotive terms like "fast sale", "mortgage rescue" and "cash quickly" in promotional literature. Tenure is to be secured for five years.