September 2013 Update - Well, following on from the various hitches where my business debit card would not work in my card reader and I had to use my personal card for a while, my transfer from LloydsTSB to TSB eventually went through without too much trauma.
I realised that the transfer had taken place when my personal card stopped working. Popping in the business card that I had flung to one side several weeks previously and remembering the PIN number that applied, it still wouldn't work. So, I typed in tsb.co.uk rather than the other Lloydstsb.co.uk url and tried there. I was in like Flynn without a hitch.
If your business debit card does not work, you have a couple of telephone options
- the TSB Business Centre on 0845 835 3858
- the Lloyds Bank Business Centre on 0845 072 5555
- or the TSB Helpline on 0203 284 1575
I believe that new cards with the TSB branding will be with us before the end of the year.
From a personal point of view, I still have to work out whether I am going to open an account with the Lloyds Bank closest to me so that I can be sure I always have cash available over the counter- if the cashpoint machine outside is not working. The TSB branch is nearly two miles away whereas Lloyds is much closer. You can draw money out at The Post Office.
Posted in June 2013
Over the past few months, I have received several letters from LloydsTSB Bank explaining how Lloyds Banking Group is preparing to make part of its business into a new UK Bank called TSB.
This will take place on 14 August 2013.
This is because of a ruling by the European Commission in 2009 which said that there needed to be increased competition and customer choice in the UK. Funny that, when for the previous decade, the banks had been engaging in numerous take-overs that made them into big conglomerates. I recall unhappy TSB customers and Cheltenham & Gloucester customers being forced to change to new LloydsTSB accounts.
Basically, what has happened is that LloydsTSB will divest themselves of some of their branches and run them under the Lloyds TSB Scotland plc licence which will then become known as TSB.
However, it is not a case of first in, first out. Oh no, what has happened is a curious post code lottery where customers, like my Dad, who have been with Lloyds Bank for over 60 years are being forced to become TSB customers.
You can find out if your accounts are based at one of the branches to be tranferred at lloydstsb.com/transfer. There will be over 630 new TSB branches across the UK.
At some point in the future, TSB will be transferred to new ownership through an Initial Public Offering on the London Stock Exchange.
Can I Opt In and Change from LloydsTSB to TSB?
My Dad had the issue where two of his accounts were going to TSB but the rest were staying with Lloyds. However, the branch in his town is changing to TSB so he will not be able to manage any of his Lloyds accounts at his local bank.
Yes, you can call the telephone numbers listed below and opt in so that all your accounts will go to TSB. BUT - and it's a big BUT - all your account numbers will change. This means that you will have to remember new banking details AND ensure that anyone who regularly PAYS YOU MONEY - like salary or pension - will have to update their details. Whilst LloydsTSB will handle any Direct Debits or Standing Orders that go out, anything coming in is down to you to sort out.
For many elderly people, this is a big ask all in one go. So most will opt to stay with Lloyds and endure the inconvenience of having to build relationships with a new branch of Lloyds.
When it comes to drawing cash, you can use an ATM at any TSB branch to get cash from your LloydsTSB accounts but many older people don't feel comfortable doing this. The best way forward is to open an account at the new TSB branch AFTER 14th AUGUST and set up a standing order for cash to be paid into it from your LloydsTSB account. This will mean that you can draw money at the counter up to the amount that is in the account.
Opt Out of Lloyds TSB Change To TSB
Yes, there is the opportunity to 'opt out' of the move but this has its own difficulties. If you normally draw your cash out from a LloydsTSB branch but you become a TSB customer, then you will no longer be able to use that service or other facilities for free because you are now with a different bank. Hard to explain all this to an 80 year old who will now have to drive three miles to the nearest TSB rather than use the branch at the end of his road!
LloydsTSB customers will be receiving a letter explaining about the opt out over the next few weeks but you need to think through a few ramifications.
If you choose to do as your told and become a TSB customer, you don't need to do anything. All your standing orders and direct debits will remain the same - whether payments are coming in or going out - because the account numbers and sort codes will not change.
Telephone Numbers For Opt Out of TSB Move
However, should you decide that you want to stay with LloydsTSB, you will need to call a freephone number and express your desire to opt out.
There are two numbers:
For Business 0800 0964315
For Personal 0800 0280428
They are open from 7am to 8pm Monday to Friday and 9am - 2pm on Saturday
Once you have registered your decision, you will then receive a letter of confirmation. This will contain a number that you can call to confirm that you do want to change and to receive your new account number and sort code. LloydsTSB will ensure that any existing standing orders or direct debits going OUT of your account are sorted out. However, anything that COMES INTO your account will need to be changed.
So, you will need to sort out any salary or pension payments and get new details registered.
Things To Think About If You Have A LloydsTSB Business Account And Want To Opt Out Of The Change To TSB
If you have a business account, this means that any standing orders that your customers have set up to pay you will need to be amended. It was this latter realisation that made me decide to cancel my previous decision to opt out.
I suddenly remembered how long it had taken to get some of my customers to set up a standing order and stop paying by cheque. That memory at 7.30am on a Saturday morning sent a cold shiver down my spine and I was on the phone to the helpline to reverse my decision at 9am.
The nice lady on the phone explained that there was a cooling off period and that, although I would receive a letter of confirmation that I had opted out, I should ignore that and not call the number listed to finalise the arrangement.
New Business Credit and Debit Cards - Issues With 'Regular Payments'
The new TSB business account holders will be sent new debit and credit cards. The literature says that they will work in the same way as they do now but there will be a new card number. This means that if you make regular payments to retailers, you will need to update the retailer with the new card number. However, regular payments do not include Direct Debits or Standing Orders so you may need to have a think about whether you have this type of payment set up.
These could be magazine subscriptions, car insurance or membership renewals.
Things To Think About If You Have A Lloyds Bank Personal Account
I was informed that the accounts themselves would not change. Although, it might be nice to think that TSB might offer some nice interest rates once they are floated. Probably only to new customers though - not the rabble who were forced through their doors by LloydsTSB.
I also queried what would happen if I wanted to be able to send funds immediately to any desperate offspring. We all bank with LloydsTSB but some of us will be going to TSB and others not. At the moment, if I get one of those pleading telephone calls, I can despatch funds online within minutes. I was advised that the new Faster Payments will have money in an account within two hours - even if it is between different branches. I don't think they quite understand what it's like when you have a child saying they need money immediately. Two hours is not immediate in those circumstances.
I suspect that personal account holders will also receive new debit and credit cards with the same issues over 'regular payments' as mentioned above for business customers.
As mentioned before, if you try to make cash payments into your TSB account at a LloydsTSB branch, it will NOT be available or earn interest straightaway and there may be a charge for this service.
If you use a LloydsTSB cash machine, you will not be able to print a mini statement, transfer or deposit funds, see credit card balances or make bill payments on your TSB account.
You should also remember that if you have a TSB credit card and you try to make a payment to it, it will take longer to reach the account and you may be charged a fee.
On the plus side, we are told that our internet banking login details will not change for business or personal accounts.
New Current Account Switching Service in September 2013
It would appear that, in September 2013, the banking industry will be bringing in a new current account switching service. This will guarantee to move eligible current accounts within 7 working days. It will automatcially arrange for payments to be redirected or forwarded.
New debit cards for TSB customers remain branded with LloydsTSB details
Late June 2013. I received my new business and personal debit cards this week. The instructions said they could be used immediately. Sadly, when I tried to use the new business debit card with my card reader, it would not work.
I was advised by the error message to call a number. When I called the number, the business section was closed - it was 2.30 on Saturday afternoon. When exactly do they think that small businesses do most of their online banking? Not during regular business hours, that's for sure. It would have been nice to have been able to sort out the issue caused by them straightaway.
Fortunately, I had not cut up my old card - as per their instructions. This still worked. So I was able to do my important banking. Other business customers report that it has taken up to two weeks to get the new card to work. Very poor!
Apparently, our new cards with proper TSB branding will be sent out over the course of the next few months with all customers having the correct card by the end of the year.
I have not yet tried to use the personal card to draw out money from a cashpoint. I will let you know how I get on.