Lloyds TSB is planning to cut the daily and monthly fees for any of their customers who go overdrawn without permission.  The current £10 fee for a bounced cheque or electronic payment will also be halved to £10.  For their customers grappling with a need for debt relief from problems such as student debt or mortgage debt, the UK banking giant hopes these changes will help with their financial debt recovery.

Lloyds TSB plans to introduce these changes from the 2nd of December and admits the new plan comes in response to customer complaints.  For many in the UK debt is all too common a burden, and in recent years there have been a high number of customers of Lloyds TSB and other high-street banks who have sought to reclaim what some have seen as unfair bank charges.

Lloyds TSB director Mark Regnier said: "The reason we are making these changes is in response to customer feedback,"

"Our customers are telling us that they still think our unarranged overdraft fees are too high and we are responding to that very directly by cutting them - and it is as simple as that,"

Lloyds has stated that it will also be stopping the payment of interest on its current accounts to customers who are in credit.  There will also now be a £5 a month charge for customers who have an authorised overdraft, which is intended as a standard charge for the provision of the overdraft facility.  This will come in addition to interest charges.

The bank has stated that for most of its customers, going overdrawn without permission should now leave them paying less than half of their current amount in charges, and hopefully less in need of consulting a debt advisory specialist.

The overdraft plan changes are a glance are:

The £15 a month fee for those with an unplanned overdraft is to be reduced to £5.

The £20 'bounced payment' fee will be cut to £10.

There will be a £10 buffer zone for any customers who go up to £10 overdrawn.

A reduction in the daily frees for the overdrawn, from between £6 and £20 to between £5 and £10.

The maximum number of daily fees that can be imposed to go down from 10 per month to 8 per month.