Lloyds TSB admits overdraft error

http://news.bbc.co.uk/go/rss/-/1/hi/business/7695384.stm

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Customers of a High Street bank had mistakenly received letters claiming they have gone overdrawn and were to be charged a fee, the BBC has learned.

Lloyds TSB said the blunder only affected a "tiny percentage" of their customers and their accounts would not be affected.

Letters were sent out last week informing customers that they had slipped into the red.

But these were being followed this week by letters of apology to customers.

'Error'

A spokeswoman for Lloyds TSB told the BBC that a "technical error" was to blame.

"A tiny percentage of our current account customers have received a letter mistakenly informing them that they have slipped into the red or gone over their overdraft limit and will incur an unplanned overdraft fee," she said.

"We sincerely apologise for this error and will be writing to these customers shortly to confirm that this letter was sent by mistake and that they won't be charged.

"In any circumstance where it is bank error, a customer will not be charged."

Lloyds TSB is one of a number of banks currently involved in a series of test cases, alongside the Office of Fair Trading (OFT), to consider whether overdraft fees are fair or not.