Higher fees being introduced for Lloyds credit card holders

From the beginning of June this year, millions of holders of a Lloyds TSB credit card will face an increase in the amount they pay for cash withdrawals, and will also have to pay more interest on their account.

Lloyds TSB, the UK’s biggest bank, and its airmiles card Duo, are introducing higher charges for withdrawals, and cutting back on their interest-free period for purchases if customers don’t repay their full balance each month.

Although Lloyds credit cards do not currently charge interest up to 56 days after purchase, the new scheme means that for those who do not clear your balance in full on the previous statement, all purchases will immediately be charged interest.

Lloyds TSB are also increasing the charge for cash withdrawals by 50 pence, from GBP2.50 to GBP3. However, the company is also evolving how minimum repayments are calculated, so that cardholders will pay 2 per cent – or interest and fees plus 0.5 per cent – whichever is greater. Another change involves missed payments or transactions that have bounced – these will now not be charged interest.

However, these new rules mean that those Lloyds credit card holders who pay in full each month will still benefit from the interest-free period on new purchases.