Martin Lewis is warning bank customers to act quickly to avoid huge changes to charges

Halifax, Lloyds and Bank of Scotland customers will face significant increases in overdraft fees, with some customers facing almost double the charges for using overdrafts. Lloyds Banking Group, which comprises all three brands, is reviewing its fee structure.

Financial expert Martin Lewis took to Twitter to issue a “warning” to Lloyds, Halifax, Bank of Scotland customers. While the banking group says most of its customers will incur the same or lower fees, Club Lloyds account holders are among those who will see their overdraft interest rates rise sharply from 27.5% to 49.9%. account.

Current rates for some Bank of Scotland, Halifax and Lloyds customers are 39.9 per cent, with others already at 49.9 per cent; they will now move to a new rate ranging from 19.9% ​​to 49.9%, Express reports. An “affordability assessment” will determine individual rates, taking into account factors such as credit history and previous account usage.

Customers facing higher rates will be given a 60-day notice period, while those on reduced rates will be notified seven days in advance.

However, it’s worth noting that some banks, including First Direct and Nationwide, offer interest-free overdraft facilities. First Direct offers 0 per cent interest on overdrafts up to £250 (or 39.9 per cent over that amount) and Nationwide’s FlexDirect account offers 0 per cent interest on overdrafts up to £1,500 for the first 12 months.

Other alternatives are available, such as a credit card for money transfer. This allows you to receive money into your account, which is then borrowed from a credit card at 0 percent for a set period, essentially lending your money – for free as long as you pay it back in full before the set period ends .