UK: Claims of 'religious discrimination' for overdraft fees

UK: Claims of 'religious discrimination' for overdraft fees

I don't see the problem. Lloyds TSB offers various ways to control overdrafts. For example, they offer a 'control' account option, which limits your overdraft options and which, for a monthly fee, will only charge you £15 a month for unplanned overdrafts. It sounds like the interest-free accounts have the same restrictions as a 'control' account.

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Many Lloyds TSB customers are being hit with charges of up to £200 a month if they go into the red - while Muslims who use the bank are only being charged £15.


The part-nationalised bank has been accused of religious discrimination over the disparity between overdraft charges on its standard current account and its Islamic account.


The Islamic account was set up by the high street bank to attract Muslim customers by allowing them to keep faithful to their religion.


Sharia law does not permit the payment of interest so the 'typical' Islamic account at Lloyds TSB has been set up without an overdraft facility.


No interest is charged on Islamic accounts, while customers with a normal account are hit with charges of up to £200


If a Muslim customer who has insufficient funds in the account tries to make a payment, it is blocked and a 'return item fee' is charged.


However, on some Islamic accounts such a payment is authorised and an 'unplanned overdraft fee' of £15 is then levied.


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Source: Daily Mail