Lloyds bank changed my account, no longer to go overdrawn?

[ecovanwaruk]

Hi, I am just wondering if anyone else has experienced this?
I recently received a letter from Lloyds explaining they were changing my 'Cash Account' to a 'Classic Account'.
Until recently i was able to go slightly overdrawn (by £9.99) on my account with an unarranged overdraft by taking out £10 when i had a balance of £0.01.
I realise this does not bode well for my the status of my personal wealth (i am living right on the breadline), but as an emergency measure it was sometimes really helpful to know that option was there.
For the first time ever i tried to do this a few days ago and was told by the machine i had "insufficient funds" in my account.
Does anybody know if this for me (likely accidental) great feature has been removed?
Im wondering if maybe it was the cashpoints iv tried at, and it would be worth trying elsewhere, but the 2 iv tried that did not charge to use have both denied me a few times now.

Contact your bank

This happened to me with Lloyd's. They used to let me do it in places like Tesco, if I paid on contactless as long as there was a tiny bit in my account it wouldn't decline. It was really useful to get food in before payday if I was desperate. One day it just randomly stopped, j think they just didn't like me regularly going overdrawn

I think most banks have stopped doing this recently. I know there was a lot of shops that when contactless was used they didn't request funds straight away so accounts would go slightly overdrawn once the payments were taken.

All banks have removed this facility to avoid people going into unplanned overdrafts and incurring potential charges.

Thanks for quick responses.

molifly14 and Puppydogg1, i dont have a contactless card for this account but am apparently able to get one if i want since Lloyds changed my account.
Until last week i was able to withdraw £10 from an ATM but i could not go overdrawn paying by card in a shop.

Herbie0987 i might do that on Monday but i feel they will only say "you shouldnt have been doing that in the first place".

You did have insufficient funds!

If you need a buffer, it would be best to speak to them about a small authorised overdraft. They're not going to change your account to let you sneak out £9.99 when you need to.

All banks are removing the ability for people to go overdrawn like that - contactless is now an online transaction so reflects immediately.

If you paid at pump for petrol it only took £1 from your account and then took the rest a few days later, I've noticed that has also stopped recently which is sad.

Unfortunately I don't think there's much you can do.

Before the lockdown my bank offered me an overdraft. I never go over drawn, but I took for the "just incase scenario"

I believe they sent me a letter too, which advised that the rules surrounding authorised & non authorized over drafts had changed for all banks

Money saving expert website probably has more information

Or

Your bank

Would it be better to arrange a small authorised overdraft with them?

Thanks for responses Isleepinahedgefund S0faSurfer592 Drivingdownthe101.
An arranged overdraft would be a great idea but i cant see my bank approving one as i am the kind of person who quite regularly would go overdrawn by £10.
Ill just have to learn that £10 is no longer there i guess!

All banks have removed the free overdraft facility. If you want one you will need to pay for it

ITonyah I have a £250 free overdraft with my Lloyds classic account.

Definitely speak to them about it. They have a duty to treat customers fairly and a small (say £50-100) arranged buffer is reasonable to ask for, although there is no guarantee it’ll be approved as the system will see you have regularly been in unauthorised OD.

You will just need to ensure you see that as for sheer emergencies only otherwise if you use it and see it as part of your available cash you’ll once again find there’s no buffer.

If they decline, keep your account strictly in credit for 6 months then ask again.

I’ve got an arranged overdraft of £250. I hardly ever use it but it is useful in case something unexpected hits, at the end of the month. I do have a monthly salary going in though. I haven’t had any letters saying that they are withdrawing that facility though. I’d speak to Lloyd’s and ask if you can have an arranged overdraft facility if £50 or so, for emergencies. £50 is not a huge amount for a bank. Contrary to those people saying banks don’t like people going overdrawn, banks do like people going overdrawn and having a credit card balance because that’s how they make their money.

@tazsyd agree to an extent but they really don’t like people using unauthorised facilities as the risk of loss is so much greater.

Did the same to me . It was a little helping hand now and again. Piss take that they stopped it
Loyds dosnt want to give Mr my own money never mind expecting them to give me any overdraft