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Original poster

Lloyds banking is planning to sell 3 million customers without consent.

29 replies

HonestlyBanking · 04/09/2011 20:11

Lloyds banking is planning to sell 3 million customers without consent. This is part of their plan to sell 600 branches. 20% of the customers will be sold as well and not consulted. This is being driven by the EU. More information at: wp.me/p1JryN-4k

This is pretty shocking. If you are a Lloyds customer, it might be time to think about which bank you want to be with rather than being forced into something.

OP posts:
Ben10WasTheSpawnNowWeLoveLego · 04/09/2011 20:14

Really?! Where is this information from - apart from your blog that is

Original poster
HonestlyBanking · 04/09/2011 20:19

The information was published by the Chartered Institute for Securities and Investment in it's september review, page 5. I will try and find a link, but I only have a printed copy. Shocking isn't it. Their website is: www.cisi.org

OP posts:
Ben10WasTheSpawnNowWeLoveLego · 04/09/2011 20:21

THank you. I just found the list here I am very disappointed to see that my branch is on that list. I don't want to bank anywhere else but it looks like somehow I won't have a choice to stay with LTSB. :(

hermioneweasley · 04/09/2011 20:24

Customers belong to the branch, not the bank. Lloyds have no choice in this. If you want to stay with that bank then open an account at a branch they are not selling, but yours might be bought by a much better bank.

Ben10WasTheSpawnNowWeLoveLego · 04/09/2011 20:26

Although I did find this on the Lloyds banking group website which sounds very hopeful that I will be able to move to the other branch in town.

  1. Can I transfer to a branch that will definitely stay?

Other than Lloyds TSB branches in Scotland and all current C&G branches, we have not yet identified the additional Lloyds TSB branches in England & Wales that will be sold. We won?t be able to do this until we start the sale process.

When a sale is agreed, we will ensure that the transfer of customers is handled with sensitivity and care and that any disruption is minimised.

We cannot actively encourage customers with accounts based in the affected branches to stay with us. However, you will be free to move your accounts between banks at any time as you are able to today. We will continue to be delighted to welcome any customers that wish to move their banking back to Lloyds Banking Group.

Ben10WasTheSpawnNowWeLoveLego · 04/09/2011 20:28

Hermione I work for one of the major banks, DH has worked at the rest so I know that I like the internet banking and service that I get with LTSB :)

freakymare · 04/09/2011 20:28

As a customer of the 'bank' you are not tied to that branch, certain branches are closing, but are not closing customer accounts they stay with Lloyds.

EdithWeston · 04/09/2011 20:34

Here's the FAQs on Lloyds' website about this. It was the first I'd heard about it, though googling does show it has been reported in the press regularly.

freakymare · 04/09/2011 20:38

You can walk into any Lloydstsb in the country and access your accounts, take money out, put money in. The branch you opened the account at is in many cases irrelavant.

Ben10WasTheSpawnNowWeLoveLego · 04/09/2011 20:55

But Freakymare that is what happens at the moment and it is pretty arbitrary where your branh is. But it sounds like customers assigned to those branches will be migrated across to whoever the new owner of the branch is. Lloyds are saying that they will accept any migrated customers back however.

CogitoErgoSometimes · 04/09/2011 21:07

"it might be time to think about which bank you want to be with "

Which is true for any bank customer at any time, surely? Wouldn't it be better for Lloyds customers to wait and see what the service is like before reacting? Changing accounts can be a PITA. Banks have bought or sold branches in the past so it's not 'shocking'. When Santander took over Alliance & Leicester I'm sure many of their customers didn't notice much of a difference.

MerylStrop · 04/09/2011 21:35

Thanks for the heads up about this. Our branch is listed and I will be looking at moving our accounts asap. I know Lloyds have been told to shed some customers but to "migrate" my account without consent isn't acceptable to me.

Under no circumstances do I want to be a Santander customer again, even momentarily. Their service is shockingly bad (as I know from bitter experience).

scaryteacher · 05/09/2011 00:09

This has been known about for ages. I spoke with my branch of Lloyds in May to confirm that they weren't on the list.

Lloyds are however having problems finding a buyer for these branches, so it is worth keeping an eye on the financial pages to see what is going on. I for one will be moving my account at the branch that is transferring as all my other accounts are Lloyds and it is easier to have them all with one bank, especially as I am overseas. Furthermore, I will not be dictated to by the EU about where I can or cannot bank. If Lloyds hadn't been strong armed into buying HBOS by the last Govt, then they may not have needed the bail out and could have kept the branches.

SarahBumBarer · 12/09/2011 15:20

What a pain in the arse. My branch is on the list. Well that said - I have two lloyds accounts with difference branches and one is on the list and one is not. Confusing.

I will be staying with lloyds. Apart from anything else the fact that I have banked with them for 15 years counts for quite a lot in terms of credit rating.

What happens to my credit card - is that linked to a branch so does that mean this could be moved too? I will have some quick paying down and budgetting to do if there is any risk of this being moved to Virgin/MBNA!

SarahBumBarer · 12/09/2011 15:25

Thing is if LLTSB have to sell 4.6% of their customer base presumably if we all move now to branches that are being retained they will just be forced to sell more branches...

So do you have to wait and move after the sale - in which case will this be a PITA because you are moving between banks or will there be some point after the deal is fixed but before completion when customers can move from a Lloyds branch which is being sold to a Lloyds branch which is not being sold without this affecting the number of branches being sold?

scaryteacher · 12/09/2011 16:20

I think they are relying on customer inertia; but they have to tell you when the sale is going through. I am pre-empting this by moving my account early.

Dh has had the Lloyds account since he was 17 and is 51 in January, so we don't want to lose that history.

Original poster
HonestlyBanking · 13/09/2011 21:36

There is a glimmer of hope - see this link:

www.telegraph.co.uk/finance/newsbysector/banksandfinance/8758311/Lloyds-Banking-Group-wins-branch-sale-concessions-from-ICB.html

What is also interesting is the proposal to allow the transportability of sort code and account numbers. This would allow people to switch more easily - much like taking your mobile number with you when you switch providers.

OP posts:
scaryteacher · 14/09/2011 10:16

But,
'However, the ICB has added a new requirement to the process ? that the new "challenger bank" created out of Verde should have a 6pc share of UK current accounts. ' How are they going to achieve that? they cannot force me to go with the new bank.

'The Co-operative Bank, Hugh Osmond's Sun Capital and start-up bank NBNK are believed to be through to the second round of bidding.' Again, no bloody way; I don't bank woth the Co-op through choice; Hugh bloody Osmond is a shark who screws up people's long held endowments (has done it to me once, and is the process of doing it again), and who are NBNK? I don't want to leave my dosh with people I wouldn't trust as far as I can spit.

'Alternatively, Lloyds could be made to transfer "more relationship deposits to Verde", the ICB said. It said that increasing the deposits in Verde would be a better outcome, but stressed that either would be "an effective means of improving competition".' Don't the ICB get that people will walk? If I can't keep all my accounts with Lloyds, then I will move to another of the big 4. I will not bank with this new bank and no-one can force me to do so.

Original poster
HonestlyBanking · 30/09/2011 16:50

Latest update on Lloyds bank sale from Robert Peston
www.bbc.co.uk/news/business-15123855

OP posts:
Original poster
HonestlyBanking · 07/10/2011 09:24

Lloyds have just been downgraded by Moody's rating agency. That's reassuring then!

OP posts:
scaryteacher · 07/10/2011 12:28

Not as scary as Dexia over here! perhaps some of the European banks will now have to sell off branches as they receive help - especially as the ECB has said they will provide loans for the banks.

scaryteacher · 07/10/2011 12:31

see here www.telegraph.co.uk/finance/financialcrisis/8782663/Debt-crisis-live.html

Lloyds doesn't seem to be too worried, and neither does Robert Peston.

nickelbabe · 07/10/2011 12:43

i just looked on that list for my branch, but forgot that my branch isn't the branch where I live.
They're selling the biggest branches in Nottingham! (Low pavement is one)
Thankfully, my branch isn't being sold (yet!)

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