Lloyds Bank Draft Credit Card Terms and Conditions

Please refer to the summary box for product specific information displayed as ‘X’s in this document, for the card(s) you’re considering.

Part A: Credit Card Agreement

Credit Card Agreement regulated by the Consumer Credit Act 1974

These are the conditions of an agreement between “us”: Lloyds Bank of 25 Gresham Street, London, EC2V 7HN, any person we may transfer our rights to and “you”:


Name of customer:


Address





The credit intermediary was not applicable.

Your agreement with us is made up of both Part A (Credit Card Agreement) and Part B (Additional important terms). You should read both parts carefully and ask us if there is anything you don't understand.

Part A shows some key points, and you will find more detailed information in Part B on these points including the meanings of some words we use. We use the same paragraph numbers in both sections to make it easier to find information. For example, your rates of interest are in Section A3 and more information about types of interest rates is in Section B3.


A1. Your credit limit

Your credit limit is the total amount you can borrow under this agreement. We set this limit and tell you what it is in writing soon after opening your account. It is important that you stay within your credit limit.


A2. Using your credit

We will provide you with a card and security details soon after opening your account. You must keep them safe as they give access to your credit.


A3. Interest rates

The table below shows you the rates and fees that will apply to some transactions during your introductory promotional period.

! You will lose any promotional offers if your minimum payment is late or you go over your credit limit.

Introductory promotional offers

Balance type Interest rates and durations Introductory fee

Purchases

XX.XX% p.a. fixed for the first X months from account opening.

N/A

Balance transfers within the first 90 days

XX.XX% p.a. fixed for X months from account opening, on the transferred amount and the promotional fee.

XX.XX%

We may make other promotional offers available to you in the future and will show them on your monthly statement if you use them.

The table below shows the standard interest rates that apply to transactions made outside of any promotional offers, and on any remaining balance after the end of a promotional offer period. Section A5 shows the standard fees.

Standard interest rates - annual (variable)

Balance type Simple % Effective %

Cash transactions (any currency)

X.XXXXX%

XX.XX%

Purchases

X.XXXXX%

XX.XX%

Balance transfers and money transfers (if available)

X.XXXXX%

XX.XX%

Default charges – The simple interest rate is X.XXXXX%.

Simple rate means the actual rate we use to calculate how much interest we will charge you.

Effective rate shows the effect of compounding the simple rate over one year. Compounding is when we add interest to your balance and then charge interest on the increased balance (including any interest already applied).

Personal rate is a rate we add to Bank of England Base Rate to calculate your effective rate if your rate is linked to Base Rate. We call it a personal rate because it is based on what we know about you, including your credit status.

What sort of interest rate do you have?

Your standard interest rates are not currently linked to the Bank of England Base Rate but may be linked to it in future.

If your standard interest rates are linked to the Bank of England Base Rate, we work out the effective rate you pay by adding together your personal rate and the Base Rate. For details see Section B3.

! We may change whether your rate is linked to Bank of England Base Rate. We may also change your standard interest rates or, if your standard interest rates are linked to Base Rate, your personal interest rates. If we make such changes, we will write to you. Section A8 says more about this.


A4. How interest is worked out

We calculate interest daily based on the total amount you owe. We add together all the daily interest amounts in each statement period and add the total to your balance on your statement date.

There are three exceptions to this rule:

  • Annual fees: We do not charge interest on annual fees (Section A5 says if your card has an annual fee).
  • Purchases: We do not charge interest on purchases made during your latest statement period if you pay off your full balance (including any balance transfers and money transfers) by the payment due date and you also paid your previous month's balance in full by the due date.
  • Default charges: We do not charge interest on default charges for the first 28 days after the day we give you notice (usually in your statement) that these charges are payable. After that we charge simple interest, so we will not charge interest on interest.

A5. Fees and charges

Fee description Amount

Annual fee

£X

Cash transaction fee (any currency)

3% of Sterling value (min £3).

Non-Sterling transaction fee (including non-Sterling cash withdrawals)

0% of the converted Sterling amount.

Non-introductory balance transfers and money transfers fee (if available)

3% of transfer (min £3).

Statement copy fee

£5

! A single transaction may attract more than one fee. For example, for a cash withdrawal in a foreign currency we charge a cash transaction fee and a non-Sterling transaction fee.

When default charges apply Amount

Your minimum payment is late

£12

You go over your credit limit during the statement period

£12

A payment is returned unpaid

£12

We will add fees and default charges (and any interest incurred) to the most relevant balance type set out in A3. For example, we would put a cash transaction fee, and any interest incurred on that fee, with the cash transaction balance.

We may also charge you reasonable costs for enforcing the agreement, for example, court costs, tracing costs and third-party collection costs.

If you or we have given notice to end your agreement, we may still apply these fees and charges until you have repaid the full balance.


A6. Annual Percentage Rate (APR) and Total Amount Payable

The APR allows you to compare this agreement with those of other providers at the time you sign it. When we calculate the APR and Total Amount Payable we ignore any promotional offers and we assume that:

  • we both keep to the terms of this agreement;
  • we charge your annual fee (if any) immediately;
  • the interest rates and amounts of any fees do not change; and
  • your credit limit is £X,XXX.XX, you make a single purchase of this amount immediately and you repay this amount over one year by 12 equal monthly payments.

Your APR at account opening is XX.X% (p.a. variable).
Your total amount payable is £X,XXX.XX; this includes your annual fee, if any.


A7. Payments

You must make at least the minimum payment by the payment due date if you owe a balance on your statement. You must also pay immediately the amount of any missed payments and any amount you owe above the credit limit. You can always pay more than the minimum payment.

We do not treat payments as received until they reach us in cleared funds. You may need to allow extra time for clearance (for example, if you pay by cheque). Your statement will tell you the minimum payment and any other amounts you have to pay with it, and when you need to pay us. For details of how to make payments see Section B7 and your statement.

! You will lose any promotional offers if your minimum payment is late or you go over your credit limit.

The minimum payment we ask for will be the higher of £5 or the total of;

  • any interest charged; plus
  • any default charges payable; plus
  • 1/12th annual fee; plus
  • 1% of the balance you owe, as shown in your statement.

If you owe less than £5, you must pay the full amount you owe.

Section B7 explains the order in which your transactions are paid off.

! We recommend that you do not pay only the minimum payment for long periods of time. If you do this, clearing your balance will take longer and cost you more in interest. If you need help with your payments, please contact us as soon as possible.

! Missing payments could have severe consequences, such as legal action against you to recover your debt or negative feedback from us to credit reference agencies, which may make getting credit more difficult for you in future. We may take legal action to recover money you owe us, which may include asking a court for an order that we can be paid from the sale proceeds of your home.


A8. Making changes to this agreement

Section B8 explains in more detail when we may change rates, fees, charges and other terms and how we will tell you about all the changes we may make. This may include making changes to rates that are personal to you if our view of your ability to repay us changes, for example because of the way you manage the account or based on the information we get from credit reference agencies.

We will give you at least 60 days' notice before increasing the interest rates we charge you. You may tell us before the change takes effect that you want to end the agreement and repay what you owe at the existing interest rates.


A9. Ending this agreement

This agreement has no fixed or minimum duration and can be ended by you or us. You can end it at any time by telling us by phone or in writing (see “Our contact details” below) and paying off your balance in full.

If we end the agreement, we will normally give you at least two months’ notice but may end it immediately in exceptional circumstances, for example, if we reasonably suspect criminal or fraudulent activity connected with the account, you seriously or repeatedly break this agreement or we would break the law by continuing the agreement.


A10. If things go wrong

A10.1 Claims for unsatisfactory goods or services

If you receive unsatisfactory goods or services costing over £100, but not over £30,000 for a single item and you paid for them directly using credit provided under this agreement, you may have the right to make a claim against the supplier, us, or both.

! This protection will not apply for cash withdrawals, money transfers or if you use your card to fund an account with a third party provider (like Paypal) and then pay for goods or services with that account. Please ask us if you are unsure.

A10.2 Lost or stolen card or security details

You should tell us as soon as possible (using the details in “Our contact details” below) if a card is lost or stolen, or a card or your security details are misused (or you think they may be). If you later find the card, please destroy it. Section B10 explains when each of us will be liable if your card is used without your consent.


A11. Our contact details

If you wish to write to us, please use the following address: Lloyds Banking Group PLC, Pitreavie Credit Card Operations, BX1 1LT.

Otherwise you can reach us in the following ways:

 

From the UK

From abroad

Reporting your card lost or stolen

0800 096 9779

01702 278 270

Textphone

0800 056 3874

01702 332953

Customer Services

0345 606 2172

01702 278 272

Textphone

0345 603 7276

01733 347 500

We will keep a record of your calls, and may record or monitor them.


A12. Changing your mind

You can withdraw from this credit agreement for any reason within 14 days starting with the day after you receive your first card. If you want to withdraw you must tell us by telephone or in writing (see “Our contact details” above), and must repay any balance you owe without delay but no later than 30 calendar days after you tell us. If you have used your card, you must also pay any interest due but do not have to pay any fees or charges. You can ask us to tell you the interest charged per day.

Part B: Additional important terms

Contents

B1. Your credit limit
B2. Keeping your card safe and using your credit
B3. Interest rates
B4. How interest is worked out
B5. Fees and charges
B6. APR and Total Amount Payable
B7. Payments
B8. When and why we can change this agreement
B9. Ending this agreement
B10. If things go wrong
B11. Contacting each other
B12. Changing your mind
B13. Loyalty (if applicable)
B14. Other important terms


B1. Your credit limit

Your monthly statement will show your credit limit, and how much of it is available to use at the time we produce your statement. You can spend up to your credit limit at any time, but you cannot use more than 95% of your credit limit for balance transfers and money transfers. We may introduce additional limits on particular transaction types in the future. If we do, we will do so as set out in Section B8.

When we work out how much credit is available for you to use, we take into account transactions we have already authorised but which we have not yet added to your account.

We can change your credit limit at any time. We will give you 30 days’ notice if we increase your credit limit, but you can tell us if you do not want this increase. You can also ask us at any time to consider increasing your credit limit, or tell us that you would like a lower credit limit (but we may require a minimum limit), or that you do not want to receive any future credit limit increases.

We may reduce your credit limit. Section B8 explains in more detail when we may make this change and how we will tell you about it. We may also limit your ability to use your card without advance notice even if you have not used your full available credit if we reasonably believe there is a significantly increased risk of you not being able to repay us what you owe. If we do this we will tell you as soon as possible afterwards and the amount we will let you spend will be shown in your statements and on Internet Banking immediately.

! It is important that you stay within your credit limit. We may refuse to carry out transactions that will take you over your credit limit, but if we authorise these, you will incur the charge detailed in Section A5 for going over your limit. This may also have other consequences like us giving negative feedback to credit reference agencies or changing our understanding of your ability to repay.


B2. Keeping your card safe and using your credit

Meanings of words we use
Card
Any credit card or credit card number issued under this agreement, including renewal, replacement or additional cards.

Security details
Details or security procedures you must follow or use to give an instruction, confirm your identity or access a device – for example a password, security code, PIN or biometric data such as a fingerprint.

Working day
Monday to Friday (except English bank holidays).

B2.1 Keeping your card safe

You must:

  • follow instructions we give you that we reasonably consider are required to protect your card and security details from unauthorised use;
  • not use your card for anything illegal or for any business purpose;
  • not let anyone else give instructions or access information on your account unless there is a separate arrangement with us;
  • keep your card secure and protected from damage;
  • if there is a place for signature, sign your card as soon as you receive it; and
  • do all you reasonably can to prevent anyone else finding out your security details.

For example
You should not:
- tell anyone your security details;
- choose obvious passwords or codes (such as your date of birth) as part of your security details;
- write your security details on (or keep them with) your card or banking documents or write them in a recognisable way;
- let anyone listen to your calls with us, or watch you using your security details.

B2.2 Transactions and how to make them

Different types of transactions are explained below.

Transaction type What is it? How do you make it? Other important information
Purchases

Card purchase

Paying for goods or services with your card.

Using your card and security details.

If you want to make regular card transactions to someone (e.g. for magazine subscriptions) you can set up a recurring transaction with them using your card.

Contactless purchase

Using your card to pay for low-value goods or services without using your security details.

A transaction limit applies. We do not set this but you can ask us what it is by contacting us.

By holding your card in front of a contactless card-reader.

If your card contains contactless technology we will tell you when we send you your card.

Occasionally you may be asked to use your security details or sign for some transactions that could otherwise be made using contactless technology.

Transfers

Balance transfers

Using your available credit to pay some or all of your credit card balance with another provider.

The minimum transfer amount is £100.

By completing the balance transfer request details when you apply for your card.

You can also ask us to process a balance transfer in branch, by phone or online after we open your account. If there is any other way to process it, we will let you know.

If you ask us to process a balance transfer or money transfer, we will transfer the agreed amount once we have completed our security checks, using the Faster Payment Scheme on the working day we approve your request. The payment will normally reach the account within 2 hours and no later than the end of the next working day after we receive your payment instruction.

If the other bank or lender is not a member of the Faster Payment Scheme, we may not be able to carry out your request. We will not be responsible for this but you can contact us to see if other methods of making the transfer are available.

If you make a balance transfer, you should continue to make any payments required by your other lender.

Money transfers
(if available)

Using your available credit to pay money into your current account.

We may make money transfer offers available to you in the future if we believe these are appropriate.

The minimum transfer amount is £100.

If we offer you a money transfer, you can ask us to process it by phone. If there is any other way to process it, we will let you know.

Cash transactions

Cash withdrawals

Using your available credit to obtain cash.

Using your card and security details at an ATM or in branch.

When you make a cash transaction (including gambling and bureau de change transactions):
- we charge interest from the date of the transaction
- we charge a cash transaction fee
- cash withdrawals in a foreign currency also incur a non-Sterling transaction fee.

We may treat any transaction at a gambling establishment (e.g. casino) as a gambling transaction, including buying food and drink.

ATMs have a daily cash withdrawal limit of £500 unless we tell you otherwise.

Gambling transactions

Using your card to make transactions such as those at casinos, betting outlets and bookmakers, and buying online lottery tickets or gaming chips, share trading or spread betting.

Using your card and security details.

Bureau de change

Using your available credit to pay for foreign currency at a bureau de change.

When we are asked to authorise a transaction, we assume we are dealing with you, and that you agree to us acting on any instructions, without getting further confirmation from you if:

  • your security details or the contactless functionality on your card are used to request a transaction (as long as we have completed any relevant security checks); or
  • you have signed a document containing the payment instruction.

Generally you can use cash machines and make purchases using your card at any time wherever your card type is accepted. Sometimes repairs, updates and routine maintenance on any systems and those of any suppliers may mean a particular service is out of action for a short time (usually just minutes).

B2.3 Foreign currency transactions

The exchange rate we use is set by the payment scheme. You can find out the current exchange rate by calling us.

! We add a non-Sterling transaction fee to the converted transaction amount (see Section A5). For American Express transactions, this includes a fee of 1.5% that is paid to American Express.

If you use an American Express card for a non-Sterling transaction, American Express converts the transaction into Sterling when processing it, which may not be on the same day we add the transaction to your account. In all other cases, we convert your payment into Sterling when we add it to your account.

! American Express converts Sterling transactions made abroad and all non-Sterling transactions into U.S. Dollars before converting into Sterling. Transactions in U.S. Dollars are converted directly into Sterling.

B2.4 Can you cancel a transaction?

You can cancel a future dated transaction (including a recurring transaction) if you tell us by the end of the working day before it's due to be taken. If you do this, you should also tell the person taking payment to cancel the payment instruction so that they do not keep trying to take the payment (but this will not end your agreement to pay them). You will need to tell them if you want to cancel your agreement or if your card details change, as we cannot do that for you.

You cannot cancel any other transaction after you have authorised it. For example, you cannot cancel a cash transaction or a payment for goods or services that are provided at the time of payment. In some cases we may still be able to help you after the times set out above; you can call us to find out whether this will be possible.

B2.5 Can we stop you using your card or refuse to authorise a transaction?

Meanings of words we use
Lloyds Banking Group
This means us and a number of other companies using our brands, which include Lloyds Bank, Halifax and Bank of Scotland, and their associated companies. More information on the Lloyds Banking Group can be found at www.lloydsbankinggroup.com.

We may cancel or suspend use of the card, refuse to replace or reissue a card, or refuse to authorise a transaction if:

a) the transaction would result in you going over or going further over your credit limit or any limit on the transaction type;
b) we believe there is a significantly increased risk of you not repaying what you owe us. This could be because of the way you manage this account or other accounts you have with us, information we get from credit reference agencies or us finding that you are bankrupt or have made an arrangement with your creditors;
c) we have reasonable grounds for suspecting fraudulent or unauthorised use of the account, including if the transaction seems unusual compared with your normal card usage;
d) we consider it necessary to protect the security of the account or card;
e) authorising the transaction would cause a breach of this agreement;
f) we have reasonable grounds for suspecting that you, any additional cardholder or another person has committed or is about to commit a crime or other abuse in connection with use of the card or the account;
g) we believe it is necessary as part of our procedures to prevent fraud or misuse of cards. You may be asked for further information, including proof of your identity, when we are asked to authorise a transaction; or
h) we believe that doing so may cause us (or another company in the Lloyds Banking Group) to breach a legal requirement or may expose us (or another company in the Lloyds Banking Group) to action from any government or regulator.

Unless the law prevents us, we will tell you if we refuse to make a balance transfer or a money transfer. For any other transaction, you will usually find out that we have refused it because the retailer will ask for payment by another method or the ATM will not dispense cash. If this happens and you call us, we will tell you why we have refused the transaction unless the law prevents us.

A retailer may be unable to immediately tell you that a transaction has been refused. You can contact us to check a transaction or (unless the law prevents us from telling you) to find out why we have refused one. We can then tell you whether or not you can take action to fix the problem that led to the refusal. Please see Section A11 for our contact details.

We are not responsible for any loss if a retailer or supplier refuses to accept your card or, for the reasons set out above, we refuse to process a transaction or delay in doing so or we suspend use of your card.

To help us prevent misuse of your account, we use systems to identify transactions that seem unusual. If you are planning an unusual transaction, please let us know beforehand so we can try to avoid delays. We may contact you about any transactions made using your card that seem unusual.

B2.6 Incorrect transfers

Without delay, we will refund the amount of a transfer (including any interest, fees or charges we charge you as a result) if you instruct us to make a transfer and we do not properly make it or it never arrives. If there was a mistake in your instruction or we can show that the other bank received the transfer, we will not be responsible but we will try to recover the money for you on request. We may charge reasonable costs for our efforts to recover this payment.

B2.7 Additional cardholders

You can ask us to add another cardholder on your account. If we agree, we will send you an additional card. You must give this to the additional cardholder and make sure they are aware of, and keep to, all conditions about the use and safety of cards and security details. Additional cardholders may be able to access information about your account and give us instructions on it as well as make transactions. You can tell us if you want to check or change what they can do.

You are responsible for all use of the additional card and any charges payable as a result. Transactions made by an additional cardholder are treated as if you had made them. This means you must pay for all transactions that are authorised before an additional card is cancelled, even if they make you break this agreement, or are charged to your account after the card has been cancelled. Contact us if you wish to cancel an additional card. As this agreement is personal to you, additional cards will be cancelled if we receive notice of your death, or you end the agreement.


B3. Interest rates

B3.1 Promotional offers explained

These are interest rates that can apply to your account for a fixed period of time. Any offers we give you when you take out your card are detailed in the introductory promotional offers table in Section A3. We will put a message in your statement to remind you when a promotional offer is coming to an end.

B3.2 Bank of England Base Rate explained

This is the official bank rate set by the Bank of England on a monthly basis. If your account is linked to Bank of England Base Rate, your standard interest rates will be the Base Rate plus a personal rate we tell you.

B3.3 When are there changes in rates linked to the Bank of England Base Rate?

If an interest rate on your account is linked to Base Rate, your effective rate will change by the same amount as Base Rate but will not track any movements in Base Rate below 0%. The simple rates detailed in Section A3 will change by an amount slightly lower than Base Rate because Base Rate includes interest on interest. The change will take place on the last working day of the month in which the Base Rate changes. We will confirm the new rates on your statement in the calendar month after the Base Rate change.


B4. How interest is worked out

We do not charge interest on purchases made during your latest statement period if you pay off your full balance (including any balance transfers and money transfers) by the payment due date and you have also paid in full your previous month’s balance by the due date.

For example
Scenario 1
If you pay your May balance in full, then make a purchase in June, we will not charge interest on that purchase if you pay your June balance in full.

Scenario 2
If you make a purchase in May and pay less than the full balance shown on your May statement, then make another purchase in June, we will charge interest on both purchases from the date we add each to your account, even if you pay your June balance in full.

! All cash transactions start incurring interest immediately.


B5. Fees & charges

Fee Balance type When does the fee apply?
Annual fee
(if it applies)

Purchases

Section A5 tells you if your credit card has an annual fee. If it does, the annual fee will appear on your first statement after account opening. We charge any subsequent annual fees in the same month each year.

! We charge the annual fee (if it applies) even if you have not used your credit card, and you will still need to make minimum payments on your account.

Non-Sterling transaction fee

Purchases

This fee applies if you make a purchase transaction in a non-Sterling currency.

! This could be a purchase on your credit card while abroad or making an international purchase online from the UK.

Cash transaction

This fee applies if you make a cash transaction in a non-Sterling currency.

! The cash transaction fee (see Section A5) also applies.

Statement copy fee Purchases

We charge this fee when you request a paper copy of a statement from us. If you are registered for Internet Banking, you can view and print your statements online and we will not charge for this.

Default charge Balance type When does the charge apply?
Your minimum payment is late

Default charge

We do not charge interest in the first 28 days after the day we give you notice that these charges are payable. After that we charge simple interest.

If you do not make at least your minimum payment to us by the due date requested on your statement.

! You will lose any promotional offers if this happens.

You go over your credit limit

If you go over your credit limit at any point during your statement period.

! You will lose any promotional offers if this happens.

! We may decline transactions you try to make. If you go over your limit at any stage, you must immediately take steps to bring your balance within your credit limit.

A payment is returned

If you make a payment to us that we are not able to process (rejected direct debit, cheque with insufficient funds or any other returned payment).


B6. APR and Total Amount Payable

No additional information - see Section A6 for details.


B7. Payments

B7.1 How to pay

Payments must be made in pounds Sterling and must reach us by the payment due date. You will need to allow time for us to receive the money before the due date. You will not break this term if a payment is late only because we have failed to process it as soon as we get it. You must always make your minimum payment, even if you have received refunds on your accounts between your statement date and your payment due date.

Method of payment How it works When does it reduce your balance?
Direct Debit

You can use direct debit to automatically pay your full balance, your minimum payment, or a fixed amount or percentage each month. To set up or amend a direct debit:
- call Customer Services (see Section A11 for details);
- use Internet Banking (if registered); or
- visit a branch.

Your direct debit amount will automatically reduce to take account of any payments you make between your statement date and the date 4 clear working days before your direct debit payment is taken from your bank. This date will be shown on your statement.

We will take the payment on the date shown on your statement or, if this is not a working day, on the next available working day. We will apply the funds to your card account the same day.

To cancel your direct debit, you need to contact your current account provider. Please also tell us if you do this.

Internet Banking
(if registered)

If you have a Lloyds Bank current account you can use Internet Banking to make payments to your credit card online.

Your payment will normally be credited to your card account within 2 hours and at the latest by close of business on the next working day.

Another bank’s online banking service

You can also make a payment through another bank's online banking service using:
a) the sort code and account number on your statement; and
b) your Lloyds Bank credit card number as your reference.

We will apply the funds to your card account on the working day we receive them. Please check with your bank when we will receive your payment.

Telephone

If you have a Lloyds Bank current account, you can make payments by phone (see Our contact details).

If you are registered for Telephone Banking, your payment will normally be credited to your card account within 2 hours and at the latest by close of business on the next working day.
If you are not already registered, we will normally credit your payment to your card account on the next working day.

Branch

You can pay by cash or cheque at any Lloyds Bank branch.

You can also instruct us in branch to transfer funds from your Lloyds Bank current account to your card account.

You should make cheque payments at least 4 working days before your payment due date. We will credit cash payments to your account on the same day we receive them.

You can pay at any other bank using the payment details on your credit card statement.

We will apply the funds to your card account on the working day we receive them. Please check with your bank when we will receive your payment.

Post

Send us your cheque quoting your name and card number (see the ‘How to pay’ section on your statement for details).

You must allow 7 working days for the payment to reach us.

B7.2 Repayment example

The amount you choose to pay off your credit card each month can make a big difference to the overall amount of interest you pay. The following example highlights the difference between only paying the minimum and paying a fixed amount based on a one off purchase of £1,000 at an example effective rate of 18.94% with no annual fee.

If you pay the minimum payment only each month

If you pay a fixed amount of £50 each month

What was the starting balance?

£1,000

£1,000

How much interest would I pay overall?

£1,263

£201

Total cost of credit

£1,000 + £1,263 = £2,263

£1,000 + £201 = £1,201

How long would it take to clear the balance?

18 years, 4 months

2 years, 2 months

! Only making your minimum payment will cost you more and take you longer to pay off your credit card balance.

The above example assumes the following:

  • The transaction takes place on 1 January and you make no further transactions.
  • You always make the payment each month on the 15th.
  • Your statement is produced on the 1st of each month.
  • No introductory promotional rates for purchases.
  • The effective rate remains the same.

B7.3 Payment amount

You must make at least the minimum payment by the payment due date if there is a balance payable to us on your statement. You can always pay more than the minimum payment at any time, including repaying everything you owe.

You must not pay us more than you owe when you make payments to your account, or transfer funds from another credit or store card if this creates a credit balance on your account. If there is a credit balance on your account at any time, we may apply it to any recent transactions not yet shown on your account, or to transactions made after the date your account goes into credit. We may also return any credit balance to the account from which the money has been sent or pay the funds into a deposit account you hold with us. We do not pay interest on any credit balances or take them into account for the purpose of any reward schemes.

If you normally pay a fixed amount or percentage by direct debit, we will:

  • increase the fixed amount, if needed, to cover your minimum payment; or
  • reduce the direct debit, if your balance due is lower, to avoid putting your account into credit.

Your direct debit amount will automatically reduce to take account of any payments you make between your statement date and the date 4 clear working days before your direct debit payment is taken from your bank. This date will be shown on your statement.

Refunds and credit adjustments to your account between the statement date and your payment due date will reduce your overall balance. But they will only count towards your minimum payment for that month (excluding arrears and any amount you owe above the credit limit) if they reduce the balance to less than that minimum payment amount. If this happens, and you have not yet paid your minimum payment, we will reduce the minimum payment needed so that it equals the full remaining balance (if any).

For example
Scenario 1
If you have a balance of £100, and the minimum payment we ask you for in your statement is £20, and there is a refund to your account of £50 between your statement date and your payment due date (or your direct debit date, if earlier), then we will still require you to pay the full minimum payment of £20.

Scenario 2
If you have a balance of £100, and the minimum payment we ask you for in your statement is £20, and there is a refund to your account of £90 between your statement date and your payment due date, (or your direct debit date, if earlier), then we will reduce the minimum payment needed so that it equals the full remaining balance of £10.

Scenario 3
If you have a balance of £510, and:
- your credit limit is £500;
- your arrears are £50;
- the minimum payment we ask you for in your statement is £70; and
- there is a refund to your account of £200 between your statement date and your payment due date;
we will still require you to pay the full minimum payment of £70. We will use both the £200 refund and your £70 payment to reduce your balance.

B7.4 How we apply your payments

We use your payments to clear any overdue amounts before we apply them to your latest minimum payment.

We will reduce the amount you owe in the following order:

  • any overdue amounts from previous statements; then
  • the remaining balance on your statement; then
  • any recent transactions not yet shown on your statement.

We use your payments to pay off balances charged at the highest interest rate first and so on down to balances with the lowest interest rates. This means the more expensive balances are always paid off first.

If there is more than one type of balance at the same interest rate, they are paid off in the following order: cash transactions, purchases, balance transfers and money transfers, and then default charges (plus any interest or charges incurred as a result of those balances). For each type of balance, your payments will pay off the oldest balance (and related fees, charges or insurance) first.

B7.5 Statements

We will send you a statement each month there has been activity on your account or if you owe us anything at your statement date. This will show the balance from your previous statement, all activity (payments, transactions, fees & charges) on your account since that statement, and the balance owed as at your statement date. You may change your statement date up to twice in any 12 month period.

If you miss a minimum payment one month, your statement for the next month will show that month’s minimum payment and the minimum payment you failed to make the previous month.

It is important that you check your statements (paper or electronic), and any other information we provide with them.

! You must pay us even if you do not get your monthly statement. You should tell us as soon as possible if your statement seems wrong or you do not receive one.

We will also send you an annual summary at least once every 12 months showing how you have used your account.

B7.6 Paperless statements

You can request paperless statements or ask us to start sending you paper statements by contacting us or by logging into Internet Banking and going to the ‘Manage Online and Paper Preferences’ page. By stopping paper statements, you are agreeing that we will send statements electronically in PDF to your personal account area in Internet Banking. You can view your statements online by logging into Internet Banking and clicking on the account statements section. We will not amend or delete statements held in Internet Banking. If you receive online statements, you can print copies but we will make a charge if you ask us to send you a paper copy of a statement; see Section A5 for details.

B7.7 Refusing a payment

We may refuse a payment to your account if:

  • the payment would create or increase a credit balance on the account; or
  • we believe that doing so may cause us (or another company in the Lloyds Banking Group) to breach a legal requirement or may expose us (or another company in the Lloyds Banking Group) to action from any government or regulator.

B7.8 Interest when a court orders payment

We will charge interest at the relevant rates in Section A3 on amounts you owe us both before and after a court orders you to make a payment to us.


B8. When and why we can change this agreement

Meanings of words we use
Card type
Visa, Mastercard®, American Express or other card scheme branding.

As this agreement could last a long time, we may need to change its terms occasionally. We can foresee some of the reasons we may want to do this and have listed them below, but in future we may also want to make changes for other reasons. We will tell you in advance about these changes and how they will affect you. You can end your agreement if you do not want to accept some changes, as explained below.

B8.1 What can we change?

We can change (including introduce new):

  • interest rates;
  • fees or charges; and
  • any other term in Part A or Part B (such as your credit limit or card type).

We cannot change terms that we tell you are fixed (such as interest rates fixed for a set period).

B8.2 Why may we make a change?

a) We may make changes for a reason set out below. If we do, the change will be a reasonable and proportionate response to a change that is affecting us or that we reasonably think will affect us.

Reason For example

A change in the cost of running our accounts, including changes in our funding costs.

If there is a change in the amount we have to pay to borrow the money we lend our customers, we may need to change what we charge for borrowing.

A change in law, regulation, code or industry guidance that applies to us including a requirement of a court, ombudsman or similar body, or an undertaking we give to a regulator.

We may have to update our security terms because new legislation introduces tighter standards.

A change in the products or services we provide or the way we provide them, including our IT and accounting systems.

We may need to make changes if we introduce additional services on card accounts, or if a change to our computer systems means we can no longer provide a feature of your account or need to provide it in a different way.

Any other change that affects us, if it is fair to pass on its impact to you.

We may introduce new measures to combat fraud or make changes to reflect developments in digital payments.

To do something positive for you.

Our terms may have to change because new technology allows you to make payments in new ways.

b) We can make changes (except changes to default charges), if we think there is an increased likelihood that you will not be able to pay us what you owe on time. This may be because of things that are personal to you such as if:

  • you have broken this agreement, for example you have missed payments, gone over your credit limit several times or a payment you make to us is not honoured;
  • the types of transaction you make (or their value or frequency) indicate riskier behaviour, e.g. unexpectedly high cash withdrawals or large gambling transactions;
  • you have broken the conditions of another agreement you have with us or another part of Lloyds Banking Group;
  • we are told by credit reference agencies about changes in your financial status.

We will not increase your interest rate if we know you are at risk of financial difficulties.

c) We can make changes to reflect the way you use your account (for example, we may reduce the number of days between the statement date and the payment date if you always pay off your balance in full).

d) We can also make changes for any other reason.

For example
We may need to respond to changes in the banking sector, caused by increased competition, which affect how we provide our services and what we charge for them.

B8.3. Changing your card type

We may change your card type or issue a different card type from the one you applied for, as well as or instead of an existing card. By signing the agreement you are asking us to do so. If your card type changes, we may also change your card and account number. We will also tell you if the standard interest rates, fees, charges, credit limits or promotional offers will change. We cannot change the terms of promotional offers you have already taken up.

B8.4 How and when will we tell you about changes to this agreement and what are your rights?

We will tell you in writing about any changes (except changes to Bank of England Base Rate where your standard interest rates are linked to Base Rate – see Section B3 for details). The table below shows when we will tell you about different changes, and when you can end the agreement if you do not want to accept the change.

Type of change When we tell you Can you reject the change?
Change to your advantage At least 7 days before the change No
Change to your disadvantage At least 60 days before the change Yes but this will end your agreement – See Section B9


B9. Ending this agreement

We may end this agreement immediately if:

  • there is illegal or fraudulent activity on or connected to the account;
  • you are or may be behaving improperly – for example, in a threatening or abusive way;
  • by continuing the agreement any company in the Lloyds Banking Group may be exposed to action from any government, regulator or other authority or may break a regulatory requirement; or
  • you have seriously or repeatedly broken this agreement in any other way

In any other case, we will give you two months' notice in writing. You can give us notice to end the agreement at any time.

If either of us gives notice to end this agreement:

  • you must stop making any transactions, destroy all cards, cancel any recurring transaction instructions and repay your full balance;
  • the agreement will continue until you have repaid all amounts you owe us including amounts added to your account after notice was given; and
  • if your standard interest rates are linked to the Bank of England Base Rate, they will no longer be linked to it from the last working day of the month in which your notice was given. But if you give us notice in the last 7 working days of the month, we may not be able to prevent any Base Rate changes in that month taking effect on your account.

If we say you can end the agreement in response to a change we make, this means you can tell us before the change takes effect that you want to end your agreement. The change will then not apply to you unless we have to make the change to comply with regulatory requirements. You will be able to repay your balance by making monthly payments at the existing rate and terms and conditions, and this agreement will not end until you have paid everything you owe.

We may require immediate repayment of everything you owe under this agreement if you die, are made bankrupt, act fraudulently or break this agreement repeatedly or seriously. But before demanding payment we will always follow legal requirements for your protection.


B10. If things go wrong

B10.1 Claims for unsatisfactory goods or services

No additional information – see Section A10.1 for details.

B10.2 Lost or stolen card or security details

No additional information – see Section A10.2 for details.

B10.3 When are we responsible for transactions on your account?

You will not have to pay us anything for any unauthorised transactions on your account made by someone other than you or an additional cardholder unless we can show that you gave someone your card or security details to make the transactions. In this case, you will be liable for all use of the card before you give us notice under Section A10.2. You will not have to pay us for any unauthorised transactions made with the card at a distance, e.g. online. If you are not liable for a transaction, we will refund it and any charges and interest resulting from it. We will not have any further liability.

You must give any information and help we reasonably ask for to deal with misuse or unauthorised access to your account, or regarding any transaction that we, the police or other authorities are investigating. We may pass related information to other banks, to those involved in processing card payments, or to the police or other authorities, in the UK or (if appropriate) abroad.

B10.4 Refunds and mistakes

You can ask us to refund a purchase (and any interest we have charged on it) if all the following conditions are satisfied:

  • The payment was made to a retailer in the European Economic Area (EEA) (which means EU member states, Norway, Iceland and Liechtenstein).
  • You did not specify an exact amount to be paid.
  • The amount taken was more than you could have reasonably expected in the circumstances (including your previous spending patterns).
  • You request a refund within 8 weeks of the payment date.

If these conditions are not satisfied, we do not have to refund you but we will tell you if we can help or suggest other steps you could take. We may ask you to provide information that is reasonably necessary to investigate whether you are entitled to the refund. You may also find it helpful to contact the person you paid.

If we are told, for example by another bank, that money has been paid into your account by mistake, we can take from your account an amount up to the mistaken payment amount. We do not have to ask you to agree to this, but will let you know if it happens. We will act reasonably and try to minimise any inconvenience to you.

B10.5 What if your circumstances change?

As soon as possible, you must let us know if your circumstances change in a way that we may not otherwise know about and that is likely to change our assessment of your financial standing. Examples include losing your job or your income significantly reducing, say because you are off work with long-term sickness.

If you have financial concerns or find yourself in financial difficulty, please contact us to discuss your options. If you prefer to speak to someone independent before you speak with us, several free advice services are available. We can give you details if you require them.


B11. Contacting each other

We will contact you using the details you give us. If we say we will write to you, we will send a letter or write to you individually in some other way (such as by email, text or including a message in your statement) that we reasonably think is appropriate.

You must tell us if your name or contact details change by calling us, visiting a branch or going online. Otherwise, we will continue using the details you last gave us, and will not be responsible if we cannot contact you or if we send confidential information to the wrong address using those details.

! We may charge you our reasonable costs of trying to find you if your contact details are not correct.


B12. Changing your mind

No additional information – see Section A12 for details.


B13. Loyalty (if applicable)

No additional information – see Section A13 for details.


B14. Other important terms

B14.1 Complaints

If you have a complaint in connection with this agreement, please write to or call us (see Section A11 for details). If our Customer Service Department cannot resolve the complaint, you can apply to have it resolved by the Financial Ombudsman Service. You may also be able to ask them to look at your complaint in some other circumstances (please see www.financial-ombudsman.org.uk for details). If you live outside the United Kingdom or if you prefer not to deal directly with the Financial Ombudsman Service, you may be able to submit a claim through the European Online Dispute Resolution Platform (available at http://ec.europa.eu/consumers/odr/).

B14.2 Rights and obligations under this agreement

You may not transfer any of your rights or obligations under this agreement.
We may transfer our rights and obligations under this agreement (including our obligation to lend) to someone else. If we do so, your rights under this agreement will not be affected.

If we choose not to enforce any of our contractual rights against you, we can still enforce them at a later time unless we tell you that we have chosen to give up our right to do so.

A person who is not a party to this agreement has no rights to enforce it.

B14.3 What happens if we break the terms of this agreement?

We are responsible if you suffer loss because we have broken this agreement. There are four exceptions to this rule:

  • We are not liable if a retailer or bank (or its cash machine or other machine) does not accept your card or card number.
  • We are not liable for losses or costs caused by abnormal and unforeseeable circumstances outside our reasonable control, which would have been unavoidable despite all efforts to the contrary. These include delays or failures caused by industrial action (e.g. strikes), problems with another system or network, mechanical breakdown or data-processing failures.
  • We are not liable for losses or costs if a regulatory requirement means we must break this agreement.
  • We make this agreement with you as a personal customer. So we are not liable for any business losses or costs you suffer, such as loss of business, profits or opportunities.

These exceptions do not apply to:

  • losses caused by us acting fraudulently or very carelessly; or
  • any other liability to the extent that the law does not allow us to limit or exclude that liability.

B14.4 What is set-off and how can we use it?

If we owe you any money under this agreement, we may use that money to reduce any arrears you owe. This is called the right of set-off. If we intend to use this right, we will tell you.

If you owe us money under this agreement, we may take payment from current or savings accounts you have with us if you don’t pay us on time. This includes joint accounts, and you should ensure you make any joint account holders aware of this. If we choose to exercise this right, we will first check that you have enough left in your accounts to cover essential living expenses. We will also follow any relevant guidance in a code of practice that applies to us, or as required by our regulator or another similar body.

B14.5 Law applying to this agreement

(a) Unless you are resident in Scotland at the time this agreement is entered into, English law will decide any legal questions about it, and about our dealings with you with a view to entering into this agreement. In addition, the courts of England and Wales will have exclusive jurisdiction regarding this agreement, subject to (c) below.

(b) If you are resident in Scotland at the time this agreement is entered into, Scottish law will decide any legal questions about it, and about our dealings with you with a view to entering into this agreement. In addition, the Scottish courts will have exclusive jurisdiction in relation to this agreement, subject to (c) below.

(c) However, if you have a dispute arising out of the operation of one of our branches, agencies or other establishments, the dispute may be brought in the courts where that branch, agency or other establishment is located. In such circumstances, the law of the place in which the branch, agency or other establishment is located will decide any legal questions about this agreement and our dealings with you with a view to entering into it.

General law (for example, about banking or consumer protection) applies to this agreement and the services we provide to you under it. For further information about these legal rights, contact your local Trading Standards Department or Citizens' Advice Bureau.

This agreement applies even if any term of it contradicts or overlaps with any law that applies, unless the law says we cannot agree with you to change or exclude the effect of that law.

B14.6 How we are regulated

We are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278. The Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS is the supervisory authority.

B14.7 Other key information

Any security you give us under another agreement will not apply to this agreement.

We may offer (and withdraw) extra benefits and services that are not covered by this agreement. If we do this, we will provide separate terms at the relevant time.

Our charges include any delivery costs and any tax you have to pay through us. You may have to pay other taxes or costs that you do not pay us or through us.

We provide this agreement in English and will communicate with you in English.