NOT-FOR-PROFIT ORGANISATIONS. A guide to your new account

Transcription

1 NOT-FOR-PROFIT ORGANISATIONS A guide to your new account

2 Your organisation is different. It s not run for profit, it s run because you re passionate about what you do. So you want a bank that s committed to the customers and communities it serves. In 2012 we invested 85 million in communities across the UK. We ve been awarded Business Moneyfacts Best Charity Account Provider three years in a row and received Community Mark Accreditation for excellence in community investment.

3 Contents What you need to know 1 Who can I contact when my organisation needs extra help? 2 We need to get the most out of our account 4 How can my account support me as my organisation grows? 9 Borrowing for your club, charity or society 12 We need some help with our account 16 Joint and Several Liability 20 Help when you need it 23 Our service promise 24

4 What you need to know Account features Our UK-based customer advisers can help with day-to-day tasks. And when you re ready, a relationship team is on hand to talk through more of your banking needs. Moving your account is simple If you re switching your organisation s account from another bank, we ll make things quick and simple and do as much of the work as possible. Any questions? Simply call us on Lines are open 7am-8pm Monday to Friday and 9am- 2pm Saturdays. We ll need you to complete one or two formalities like proving your name and address. That aside, our dedicated team will take care of everything: We ll transfer all your standing orders and UK Sterling Direct Debits*. We ll move the balance from your old to your new account. We ll make sure your old account is closed. Our team will answer any questions you have. If anything goes wrong with the switch, as soon as we are told we ll refund any interest or charges you have incurred on your old or new account as a result of a delay caused by us. This does not cover charges or interest resulting from required tasks you or your old bank do not complete. * SEPA Direct Debits cannot be transferred for you. As a debtor, you will need to advise your creditor of your new account details. 1

5 Who can I contact when my organisation needs extra help? You may need to speak to us for help for example if you re thinking of moving your organisation in a new direction. When you need answers, fast Opportunities arise and you need decisions to be made quickly. Our relationship team understand this and they ll respond as quickly as they can. Available as and when you need us Your organisation may need to save money or require an overdraft or loan. If a face-to-face meeting isn t necessary you can speak directly to your relationship team over the phone to discuss the options, simply call us on Lines are open 7am-8pm Monday to Friday and 9am-2pm Saturdays. Any property given as security, which may include your home, may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it. All lending is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on you and your organisation. You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action. simply call us on Lines are open 7am-8pm Monday to Friday and 9am-2pm Saturdays. 2

6 Day 6 The funds from a returned cheque will not be debited. You can be certain that even if the cheque is later returned unpaid, the funds will not be debited from your account without your agreement*. The clearing cycle 6 days Day 1 Your cheque payment goes in Day 2 Your money will earn interest Day 4 Your money will be available If you have any questions about the cheque clearing process, please ask your relationship team or your local branch. More information about how the clearing cycle works across UK banks can be found at *Subject to fraud. 3

7 We need to get the most out of our account You want daily tasks to be simple and effortless. That s why we ve built as much flexibility and convenience as possible into your account. Organisations with annual turnover below 50,000 Lloyds Bank Treasurer s Account is designed for non-profit organisations with a turnover below 50,000 as there are no charges for day-to-day banking. This includes paying in or taking out cash and issuing or paying in cheques. All you need to do is make sure you keep your account within agreed limits and don t go overdrawn without prior agreement. If you wish to use other services such as Bacs, originating UK Sterling Direct Debits and Telepay you will be charged for these. For details see the Charges for Other Services leaflet. Annual turnover of more than 50,000 If you have an annual turnover greater than 50,000 you may have specialist requirements. Our commercial customer service advisers can discuss these with you, and you ll be able to choose from three tariffs: Monthly PricePlan Our Monthly PricePlan gives you a maximum number of transactions each month for a fixed fee. This makes it easier for you to budget for your day-to-day banking putting you in control of your account charges. For more information about Monthly PricePlan please see our Monthly PricePlan brochure. Business Extra Tariff You pay a set price for each of your basic transactions. Electronic Business Tariff This includes lower charges for electronic or automated transactions as long as you keep at least 1 in your account. For more information on our Business Extra or Electronic Business Tariffs please ask for a copy of our Account Charges Your account charges explained brochure. We don t pay credit interest on our Monthly PricePlan, Business Extra or Electronic Business Accounts. If you re not sure on the right type of account for you, please speak to your relationship team or call and ask for the Clubs and Charities team. Identification and why we need it from you If you make any changes to an existing account we will need to identify new signatories and all key account parties. We request proof of identity and address for certain parties before you open a new business account. From time to time we also carry out a search with fraud prevention and credit reference agencies. We do this to protect all of our customers and prevent money laundering. This is also required by law. For full details of our identification procedure, please see our Identification we need from you leaflet. 4

8 Key account parties Key account parties include anyone who has control or influence on the organisation, for example: Anyone who can authorise transactions verbally, in writing or electronically. Anyone who has injected significant capital into the business. Anyone with a shareholding of 25% or more. Principal controllers/directors and shadow directors. New signatories to existing accounts. Your payments going in Most cheques go through a system called the clearing cycle, used by most British banks to transfer money between accounts. This is often referred to as the process, or for deposit accounts and is illustrated on page 3. This is how it works for a cheque paid in on a Monday morning: After two business days, your cheque will start to earn interest from Wednesday, or if you have an overdraft it will start to reduce the interest charged. After four business days your money will be available in your account from Friday although the cheque could still be returned unpaid. This means you ll be able to withdraw cash or make payments. Also, money will normally be available through the usual way at the ATM, on Internet banking and to use through your debit card. After six business days, in this example the following Tuesday, you can be certain that even if the cheque is later returned unpaid the funds will not be debited from your account without your agreement unless you are a knowing party to fraud. This does mean that a cheque can be taken from your account up to six business days after you pay it in, even if you have already spent the money. Our business day lasts from 9am to 5pm Monday to Friday, excluding Bank Holidays. Cheques or cash paid in after 5pm (in some cases 3.30pm) might not be processed until the next business day. Your payments going out When we make a payment on your behalf, we ll act on your instruction when received on a business day and before our payment cut-off time which is detailed in our Payment Transactions brochure. For full details of cut-off and transaction times for payments please refer to our Payment Transaction brochure. 5

9 Getting the most out of your card payments We can help your organisation take payment by credit or debit card in person, online and when the cardholder is not present. Ask about Cardnet, Lloyds Banking Group s card payment acceptance service with these additional benefits: Multiple channels for card payment acceptance. Flexibility as your organisation grows. Excellent reporting facilities including VAT reporting. Support at set-up and beyond. For more details, call our dedicated team on from 9am to 5pm, Monday to Friday. Our bulk payments service is a simple, convenient and secure way to make regular payments such as paying staff, expenses and supplier payments. It s ideal for small and medium-sized businesses that make up to 25 payments in one batch and can be done online. Over the counter. Write CASH on the pay line of a cheque and hand it over the counter of any Lloyds branch. If it s not your branch, you ll be asked for your card or another form of identification. There s a limit to how much you can take out in one day, but usually you can take out more money by agreeing it with us in advance. Stopping a cheque. If you ever need to stop payment on a cheque, call us first on and confirm your request in writing. You ll need to add details of any replacement cheque you ve written. This must be done before the new cheque is presented for payment. To stop a cheque, we need to know: The cheque number. The amount. The date it was issued. Who it was made payable to. To find out the cost of stopping a cheque, Please ask for a copy of our Account Charges Your Account Charges explained brochure. Remember, stopping a cheque doesn t cancel your legal obligation to pay for goods or services. Taking money out. Most cheques will clear according to the cheque clearing process detailed on page 3, but please be aware that if another Lloyds Bank customer pays in one of your cheques at a Lloyds branch, the money could leave your account on the same day. If you cash a cheque at any Lloyds Bank branch before 5pm, the money will leave your account that day. The total value of each month s Business Charge Card purchases is taken from your current account by non-returnable Direct Debit. To find out more, please see the Business Charge Card terms and conditions. Returned cheques. If there s not enough money in your account to cover a cheque you ve written, it may be returned unpaid. If this happens, we ll notify you within two business days and let you know how much you ll be charged. You can take convenient, secure payments with Cardnet. 6

10 Unpaid cheques. We ll write and give you the details of any unpaid cheques, normally within two business days of it being brought to our attention. However, things like postal delays could lead to a cheque being returned unpaid after the normal four business day clearing cycle. So, don t assume that a cheque has been paid just because it s marked as a cleared item on your account. It could be crucial for you to know whether a cheque has been paid or not if it s payment for goods you re waiting to deliver, for instance. Your branch will tell you how to check this (there may be a charge). Out-of-date cheques. In the past, banks generally treated cheques as out of date if they were written more than six months ago. Not because the cheque had become invalid, but just as a precaution in case it was lost or stolen. This practice is less common now and most banks will only return very high value cheques because they re considered out of date. However, you should be aware that it is still possible that we or another bank could return a cheque as out of date, so if you have one that s more than six months old you should ask the person you got it from to write a new one and destroy or return the old one. As a cheque that is more than six months old can be paid, you should never rely on us to return a cheque unpaid purely because it was written more than six months ago. If you don t want a particular cheque to be paid then it should be stopped. Faster Payments is a payment service which lets you make and receive Sterling payments within the UK in a matter of hours, and often minutes. Payments made through telephone banking and any Internet banking payments which are over the limit for same day will be processed overnight and will reach the recipient s bank the business day after the payment instruction was received by us. Details of same-day payment limits within Internet banking will be available to you at the time you make the transaction. You can go online to check that the sort code you are sending a payment to can receive Faster Payments. To find out more or to check a sort code go to the payments transaction section of our website at lloydsbank.com/business CHAPS is an electronic, bank-to-bank payment system that guarantees same business day payment of cleared funds in the UK. 7

11 Cards make it easy Debit and charge cards are less bulky and more convenient than cash and cheques. Your relationship team can help you apply for either of these cards. Business Charge Cards carry an annual fee of Withdraw up to 700 per day from our cash machines with a Business Debit Card 36 days interest-free credit on all Sterling purchases with a Business Charge Card Business Debit Card Offers easy payment tracking and can save money on cash withdrawals and the cost of writing cheques. You can withdraw up to 700 per day from our cash machines. Business Charge Card A cost-effective way of paying for everyday expenses and helps cashflow by providing up to 36 days interest-free credit on Sterling purchases. You can decide how many cards to issue and what limits to set *. *SEPA Direct Debits cannot be used to settle your balance on your Business Charge Card. 8

12 How can my account support me as my organisation grows? As your organisation expands and becomes more involved, you may want greater support and flexibility from us. Our additional services let you stay focused on running your organisation. 9

13 Better banking There are many ways to bank with us and we re never far from you. Business managers Get access to our business managers in one of our local business centres or at a branch near you. Deferred checking Instead of checking the details of an over-the-counter deposit while you wait, we check and credit your account by the end of the day this is available in most branches. Nightsafe Pay in money outside of banking hours at a time that is convenient to you your account will be credited the next working day. Telephone banking If you prefer, telephone banking is a flexible service for most day-to-day needs speak to an adviser based in the UK or use the automated function. Inter-bank agency agreement We are happy to discuss inter-bank agency agreements and charges for this service, if this is appropriate to your circumstances. Internet banking Use Internet banking for quick and secure financial transactions all year round. depositpoint TM Make deposits quickly in branch with depositpoint or use deferred checking to make over-the-counter deposits even faster. Balance availability You may only be able to withdraw part of your balance if there are payments that have not been debited from your account (e.g. a card transaction) or cheques that have not yet cleared. Text alerts We can also send out text alerts so you can check on your finances when you re on the move. Savings If your organisation has extra funds, it s important that they re working as hard as possible for you. We offer instant access accounts if you need to be able to get your money quickly, 30-day notice accounts if you don t need instant access and fixed-term deposits when you re investing for the longer term. To discuss your savings options and which one is right for you, please contact your relationship team. Statements You ll get a regular account statement to help you manage your money more efficiently. It will be sent monthly, quarterly, annually (minimum period) or on request. We usually charge for duplicates or copies. Details of the charges of these services are covered in the leaflet inside the back pocket of this brochure. Cash machines You also have access to Lloyds Bank, Bank of Scotland or Halifax cash machines where you can check balances, order cheque books and, of course, withdraw cash see Cash machines in Getting the best from your account leaflet for more information. A 2.5% transaction fee (minimum 2.50) is applied when you use your Business Charge Card to get cash. Cash withdrawals on a Business Debit Card are free, although if you use another bank s ATM, some providers may charge you a fee for using their machines. 10

14 We recommend that you get quotes from several banks or other sources before going ahead with any borrowing.

15 Borrowing for your club, charity or society From time to time, your organisation may require some extra financial flexibility, to invest in equipment or help with short-term cashflow. Before considering the possibility of a loan the trustees of the charity must check that their governing document gives them the power to borrow we will need to see this. It s also worth noting that your trustees should have a meeting to discuss how you are going to deal with borrowing money, and you ll need to produce a set of minutes that capture the conversation. They should also clearly outline your resolution to borrow the money and should include: Why the organisation needs money. Why it has decided to borrow money rather than look for funds in other ways. Why a particular form of borrowing and a particular lender have been chosen. We recommend that you get quotes from several banks or other sources before going ahead with any borrowing. What are my personal responsibilities for the borrowing? It is in your own interest to find out the extent of your personal liability and to be comfortable with this. Small groups or clubs may not be incorporated and will not therefore have an identity separate from the club members, committee or trustees appointed in accordance with the relevant constitution and rules. Individuals who enter into commitments on behalf of their organisation may ultimately be personally liable for payments. Please read the section Joint and Several Liability that appears on page 20. What are our borrowing options? There are a number of options available to you, depending on your circumstances: Overdraft: borrow any amount up to an agreed limit, and pay interest only on the amount you actually use. Base rate linked and fixed rate loans: there are different types of loans available to give you more options. There is always a possibility that interest rates may go down leaving a fixed rate loan at a higher level compared to a variable rate loan. However, if interest rates rise, a fixed rate loan will remain at the same rate. Break costs may apply upon full/partial early repayment of the loan. This will be calculated based upon the loan rate compared to market rates at the time of repayment. These may be substantial. Hire purchase: to borrow over 7,500 to purchase new vehicles or equipment, repaid over one to five years. Commercial mortgage: looking to buy, refurbish or invest in property? Then ask your relationship team about a base rate linked or fixed rate commercial mortgage for over 25,000. Usually, we lend up to 70% of the value of the property, but in some cases we re able to lend more. With the base rate linked mortgage, you can apply for flexible capital repayment holidays of up to two years. We will require a first legal (of first standard security) charge over property as security. Your relationship team will be able to talk you through these options in more detail. An arrangement fee is payable depending on the amount you borrow. Your relationship team will inform you of the appropriate charge before any facilities are agreed. For higher value loans we may also require security. The costs of taking any security will be discussed with you at the time of your application. Any property given as security, which may include your home, may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it. All lending is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on you and your organisation. You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action. 12

16 If you need to borrow money for any purpose or period, please talk it over with us first to avoid extra charges. Once we ve agreed terms we ll write to you, letting you know the interest rate, when it s charged and what fees are payable. In the case of an agreed overdraft, the limit, review date and current interest rate will be shown on your statement. What sorts of questions will the bank ask? Banks, generally, have standard questions they will ask if you want to borrow money. The bank will want to know what you want the money for, what it s going to do for your organisation, how long you want to borrow it for and how you will repay it, for example. You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action. Our finance application checklist gives more details about the type of information we may ask you to provide to support your application. Please ask your relationship team for a copy or visit lloydsbank.com/financechecklist Do we need a business plan? It may not be necessary for charities or small organisations to present a business plan. However, a business plan can be a useful tool and may ultimately dictate whether you will be offered a loan, as well as what terms the bank is prepared to offer. As a general guide, your plan should include: General information about your club or charity, its aims and objectives. The legal form of your organisation and proof that it has the power to borrow. Details of the organisation s assets and liabilities. Brief details of the people running the organisation. Details of the project and why you need a loan for it. A cashflow forecast for the next 12 months showing how you intend to repay the loan. A current balance sheet. Accounts for the past three years. Details of any previous borrowing. FOR MORE INFORMATION Please call If you need to call us from abroad, or prefer not to use our 0845 number, you can also call us on to speak to one of our advisers. Financial assessment Before we lend your organisation any money, or increase its overdraft borrowing limit, we ll assess whether we feel you will be able to repay us. This may include us looking over the business plan and accounts, including cashflow, profitability and existing financial commitments and: How your organisation s finances have been handled in the past. Information we get from credit reference agencies. Credit assessment techniques, such as credit scoring. Any security provided. If we can t help you, wherever practical, we will explain the reason why and suggest what steps you might take next. If we ask you for security to support borrowing or other liabilities, we will tell you why we need this security and we will confirm what we need in writing. We will make sure that any documents are easy to understand by avoiding technical language whenever possible. We will make sure that you have the opportunity to discuss with us anything you re not sure about. You should read the documents carefully and feel free to ask us questions and get independent advice. If you ask us, we will tell you under what circumstances we will agree to release the security. 13

17 We may agree to accept security provided by another person to support your organisation s liabilities. If you want us to accept a guarantee or other security from another person for your liabilities, we may ask you for your permission to give confidential information about your organisation s finances to the person giving the guarantee or other security, or to their legal adviser. If the guarantee or other security is provided by an individual rather than a company, we will also: Recommend that the person providing the guarantee gets independent legal advice to make sure that they understand their commitment and the possible consequences of their decision (where appropriate, the documents we ask them to sign will contain this confirmation). Tell them that by giving the guarantee or other security they may become liable instead of, or as well as, your organisation. Tell them what their liability will be. We will not take an unlimited guarantee from individuals other than to support your organisation s liabilities under a merchant agreement. We will only accept unlimited guarantees from companies. We deal with any financial difficulty sympathetically and positively. If you get into difficulty We will consider cases of financial difficulty sympathetically and positively. You ll usually become aware of problems first and should let us know as soon as possible. If we have any concerns we will let you know in writing or, if speed seems to be important, we may try to contact you by phone, fax or . These are some of the things which may concern us, particularly if you do not let us know what is happening: If you go overdrawn without our agreement. If you go over your agreed overdraft limit, especially more than once. If there are large increases or decreases in your organisation s turnover. If you are trading at a loss. If you suddenly lose a key customer or employee. If you sell a large part of your organisation s assets. If you use a facility for a purpose other than those agreed with us. If you fail to make a loan repayment. If you do not keep to conditions set out in a loan agreement. If you do not supply agreed monitoring information on time. If another creditor brings a winding-up petition or other legal action against your organisation. We will do all that we can to help you overcome any difficulties. This includes developing a plan with you for dealing with financial difficulties and confirming in writing what we have agreed. We follow the Lending Code, which includes details of how we can best work together to deal with problems of financial difficulty. A copy of A guide to the Lending Code is enclosed. The Lending Code can be downloaded from the Lending Standards Board at or our website lloydsbank.com/business/lendingsupport 14

18

19 We need some help with our account Solutions to help you Quite often there s a simple solution but if you need extra help you can speak to your relationship team, call us or visit your local branch. Can t access your Internet banking account Internet banking is a great tool but if you can t access your account go to the Internet banking logon screen and click the Unable to log on? button. Complete the online form, click Continue, then follow the on-screen instructions to get back online please make a note of any reference number we give you. You may be required to complete a form and return it to us. We will confirm your identity prior to your Internet banking account being reset. Organisation changes When you need to amend your organisation s details (change of address, change of name, etc.) call and we ll arrange for you to speak to your relationship team. Your PIN Your new card will include a chip which holds your personal identification number (PIN). When you use your card, you will be asked to enter your four-digit PIN into a PIN pad at the till. The number you enter is matched with one held on the chip in your card, and if the match is correct the transaction will be confirmed. Please note that if you do not know your PIN, you should not expect to be able to sign and your transaction may be declined. If you are unable to use a PIN because of a disability or a medical condition, please let us know. We will be happy to tell you about alternative options to ensure you can use your card in retail outlets. Customers who do not have a chip and PIN card, or make a purchase from a retailer who has not installed a PIN pad, will have their transaction authorised by signing a receipt. Keep your cheque book and cards separate. Don t tell anyone, or write down your PIN, password or other security information. Memorise them as soon as you receive them and destroy the evidence. Don t let anyone use your card and keep it safe at all times. The same applies to card receipts that you have. We ll send you and other authorised users a card only if you ask, or when it s time to replace your existing one. Never write down or record your PIN, password or other security information. When you change a card we ll send you a new PIN in a separate envelope. If you d like to change your new PIN you can do so at any Lloyds Bank, Bank of Scotland or Halifax cash machine. Just enter your new PIN and follow the onscreen instructions. You can t change your PIN during the month before a renewal card is due. Choose your new PIN carefully. You can find out more information on chip and PIN at or If you suspect card fraud a useful guide on what you need to do can be found on the APACS website Account aggregation View some, or all, of the online accounts you hold with several different banking or finance providers. We don t offer this service ourselves so please be aware that if you do use an external account aggregation service, you may be liable for any fraud or mistakes that occur as a result. 16

20 Your personal and organisation information This information (including your name and address) is kept private and confidential, even if you re no longer a customer. It isn t disclosed to anyone outside the Lloyds Banking Group* except in the following cases: If we re legally obliged to provide information. If we have a public duty to reveal information. If it is needed by our agents and others involved in running accounts and services for you or your organisation. If we or others need to investigate or prevent crime. If our interests are threatened where we suspect fraud, for example. This will not be used as an excuse for revealing information about you or your accounts to anyone, including other companies in our group for marketing purposes. If you ask us to reveal the information, or if we have your or the organisation s written permission. If we re asked to answer a query about your financial status, we ll make sure we have your permission before responding. There are simple steps you can take to keep your account more secure. Liability for losses Generally the following will apply: a) You will not have to pay anything in respect of the use of a card or card details that: Are used before you receive the card or card details. Are lost or stolen, provided you tell us you as soon as you become aware of such loss or theft. This will apply unless we can show that you or a cardholder have acted fraudulently or have not taken all reasonable care in keeping a card or card details safe and in accordance with our security requirements. b) You will not have to pay anything in respect of the unauthorised use of a card or the card details where the cardholder does not need to be present, unless we can show that you or the cardholder have acted fraudulently. c) We will refund the amount of any unauthorised card transaction, unless we can show that you or the cardholder have acted fraudulently or have not taken all reasonable care in keeping a card or the card details safe and in accordance with our security requirements. We will also refund any interest charged in respect of that transaction together with any charges directly incurred on your account which would not otherwise have been incurred. d) If you or any cardholder have acted fraudulently in connection with the use of a card or the card details or have not taken all reasonable care in keeping a card or the details safe and in accordance with our security requirements, you will be responsible for all losses arising out of or in connection with unauthorised card transactions. * The Lloyds Banking Group includes companies using brands including Lloyds Bank, Halifax and Bank of Scotland and their associated companies. More information on the Lloyds Banking Group can be found at lloydsbankinggroup.com 17

21 Extra security There are a few other precautions you need to take to protect your account. Regularly check your inbox for scams, never click on them and call us if you are suspicious. Be aware of calls from fraudsters, purporting to be from the Bank, or other official institutions. Don t tell anyone your account details or PIN. Always keep your cheque book and card separate. Check your statements regularly. Call one of the numbers provided with your card or cheque book, or get in contact with the Clubs and Charities team on We ll take immediate steps to protect your account from unauthorised access. Be on your guard against hoax calls or callers. They could be criminals trying to get extra information about your account. Lost and stolen business cards and cheques If your cheque book or any cards are stolen or passwords and any other secure information become known to others, please notify us immediately or you may be liable to cover the costs. In some circumstances you may not have to pay anything; however, if you have acted fraudulently or without all reasonable care, you will be responsible to cover all the losses in your account. Business account rates and charges We have a variety of business account tariffs and try to ensure our rates and charges remain competitive. We do our best to make the numbers easy to follow so you can compare them and choose the one which suits your business needs. Speak with your relationship team or look on our website for more information. Charges and interest We charge for the service you use, like any other business. We ll tell you what we re charging for and how much. Our main Account Charges brochure takes you through all our banking charges, in depth. It contains all the charges for our most frequently used UK mainland branch services, and full details of our charging cycle. It shows you how you could save money too. If you d like a copy of the main Account Charges brochure, please ask. For details of the charges to clubs, charities and societies for other services, for example Bacs payments, please refer to the Charges for other services leaflet at the back of this brochure. The information is also on our website lloydsbank.com/business You ll find our interest rates in your local branch and on our website lloyds.com/business/ratesandcharges Don t recognise a transaction on your account Call our team of business customer service advisers immediately with the transaction details on and we ll look into the item on your behalf. We may require you to sign a declaration form disclaiming your knowledge of the transaction(s) and we might block your account number for security purposes in cases where there is suspected unauthorised or fraudulent use of your account. 18

22

23 Joint and Several Liability This section explains the potential liability of authorised signatories in the event of there being outstanding liability to the Bank. Other matters to do with your account authority are also covered. Your account with us will be opened in the name of the organisation instead of its officials or authorised signatories. Where the organisation isn t a separate legal entity we may be able to take appropriate actions against each and every one of the authorised signatories to the account. For example, if the organisation s account becomes overdrawn, the Bank may take action to recover the whole of any debt from each and/or every one of the authorised signatories to the account. You and the other members of your organisation will be asked to sign an account authority. This is your contract with us and contains your instruction on the way you want to run the account and your promise to pay any debts. Although the members of your organisation who you ask to become authorised signatories on the account will give a specimen signature, it s up to you whether you have one or more member(s) to sign each cheque (or other instruction). What does Joint and Several Liability mean? The concept of Joint and Several Liability applies to the Club, Charity or Society Account. Joint and Several Liability arises when two or more people agree to pay a debt (or similar). This is a joint promise together to pay the debt. At the same time, each person makes a separate promise to pay the full amount of the debt on his or her own. This means that each authorised signatory (who these are depends on who is nominated in the account opening authority) is liable to pay the full amount of the debt. This means that you, personally, would be responsible for any overdraft even if another authorised signatory signed all the cheques. If you have a one to sign or two to sign authority then this means that those authorised signatories could withdraw the whole balance on the account. Running your Club, Charity or Society Account All payment instructions are to be signed the way you ve agreed in your account authority and in accordance with the Terms and Conditions. Usually, however, anyone can pay into your account. Statements will be sent to your organisation s correspondence address (as detailed on the account application form), marked for the attention of the organisation s contact name. You and the other members will need to check these statements for errors. Ask for additional copies if you need them although there will be an extra cost involved as detailed in our Charges for Other Services leaflet, which is available inside the back pocket of this brochure. Changing the authority You may notify us of a change to the account authority by completing our standard form to Vary the Instruction to Operate Our Account. This form should be signed by any two authorised signatories. If the committee have a disagreement We d like to know of any disputes as soon as possible. If there is a dispute, we may require all authorised signatories to authorise transactions until all authorised signatories agree how the organisation s account is to be operated. If we make this change, we may have to ask you not to use your Business Debit Card, Business Charge Card or to use Internet or telephone banking until things are sorted out. If the dispute becomes serious, we ll have to freeze the account until the dispute is resolved. 20

24 Freezing the account means that none of you will be able to take any money out of the account on your own (or carry out any other transactions, either). This enables us to ensure that no transactions are carried out unless you all agree. As you know, if your organisation is not a separate legal entity, the authorised signatories will each be jointly and severally liable for any overdrawn balance when the account is frozen. You might be able to open new, separate accounts, but we may ask you to keep these accounts in credit at all times and to put forward proposals for repaying the debt. If an authorised signatory leaves the organisation Please tell us immediately. If the organisation isn t a separate legal entity we may treat any continuing authorised signatories as having full power to carry on the organisation s business and to deal with its assets as if there had been no change in the organisation. This will apply unless we receive written notice to the contrary from any of the continuing authorised signatories. If the organisation isn t a separate legal entity and has an overdraft or any outstanding loans with us, each authorised signatory (including the authorised signatory who has left) remains separately responsible to us to repay all the debts. If an authorised signatory dies If the organisation isn t a separate legal entity we may treat any continuing authorised signatories as having full power to carry on the organisation s business and to deal with its assets as if there had been no change in the organisation. This applies unless we receive written notice to the contrary from any of the continuing authorised signatories or from the executors, legal personal representatives or trustees of any deceased authorised signatories. If the organisation is not a separate legal entity and has an overdraft or any outstanding loans with us, when an authorised signatory dies, the deceased authorised signatory s estate remains responsible for paying the debt and we may require payment from the deceased authorised signatory s assets. The organisation s account authority with us will not be affected by any change in the authorised signatories as a result of death, bankruptcy or retirement. If a new signatory joins If the organisation is not a separate legal entity, a new signatory might not want to become jointly and severally liable for any loans or overdrafts outstanding on the existing account. In that case, we can open a new account. But the old signatories will have to reach an agreement with us about paying the old debts. The organisation s account authority with us will not be affected by any change in the authorised signatories as a result of any new authorised signatory(s) joining the organisation. Closing the account If your account is in credit, you ll need to tell us where to send the money and how to deal with any regular payments in or out of the account. If your organisation isn t a separate legal entity, all authorised signatories will have to make proposals for repaying any debts. Normally, if it s our decision to close the account we will give you at least two months notice. Confidentiality We assume that all information about the organisation s account and the organisation in general can be discussed with any authorised signatory. You may want us to deal with one authorised signatory, solely. Personal accounts remain separate and confidential. Mortgages and guarantees If you take out a mortgage or sign a guarantee, the persons signing these documents may be jointly and severally liable in respect of any outstanding obligations. These are complex and legally binding documents and you should take legal advice before signing one. 21

25 Important information about compensation arrangements We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors including most individuals and small businesses are covered by the scheme. In respect of deposits, an eligible depositor is entitled to claim up to 85,000. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be 85,000 each (making a total of 170,000). The 85,000 limit relates to the combined amount in all the eligible depositor s accounts with the bank including their share of any joint account, and not to each separate account. For further information about the compensation provided by the FSCS (including the amounts covered and eligibility to claim) please ask at your local branch, refer to the FSCS website or call the FSCS on or Please note, only compensation-related queries should be directed to the FSCS. Deposits with us are held with Lloyds Bank plc and include accounts with the following: C&G Savings, Lloyds Bank, Lloyds Bank Agriculture, Lloyds Bank Commercial Banking, Lloyds Bank Private Banking and Worldwide Service. An eligible depositor s 85,000 limit relates to the combined amount in all accounts with Lloyds Bank plc. If you are unsure whether your account is held with Lloyds Bank plc, please check your account literature. 22

26 Help when you need it Putting things right If something goes wrong Help us by having the following information to hand when you call: All relevant bank details account number, sort code, card, policy or investment number. Photocopies of any supporting paperwork, keeping the originals for your own records. How to make a complaint If you are unhappy with something we ve done and would like to make a complaint: Make sure your usual contact at the bank knows about your complaint and tell them how you think it could be resolved. We ll respond to you, usually within five business days. Or you can call our Commercial Telephone Banking Centre on am to 8pm Monday to Friday or 9am to 2pm Saturdays. We re closed on all UK public holidays. To call us from outside the UK call You can also call us on Textphone Alternatively, you can raise your complaint with Customer Services. Write to The Manager, Lloyds Bank, Customer Services, Correspondence Centre BX1 1LT. Taking your complaint further Customers that are charities and have an annual income of less than 1 million may be eligible to take their complaint to the Financial Ombudsman Service. Customers that are micro-enterprises with a group annual turnover or balance sheet of up to 2 million (Sterling equivalent) and who have fewer than 10 employees may also be eligible to take their complaint to the Financial Ombudsman Service. If you have a complaint and we haven t issued our response within eight weeks from the date you first raised your complaint, or if you re dissatisfied with our response, you can ask the Financial Ombudsman Service for an independent review. The Financial Ombudsman Service will only consider your complaint once you ve tried to resolve it with us, so please take up your concerns with us first and we ll do all we can to help. Write to Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR. Or you can call on: Calls to this number are normally free for people ringing from a fixed line phone but charges may apply if you call from a mobile phone Calls to this number are charged at the same rate as 01 or 02 numbers on mobile phone tariffs. These numbers may not be available from outside the UK so from abroad call on For further information visit the Financial Ombudsman Service website at The Financial Services & Markets Act 2000 sets out timescales for dealing with such complaints. To reduce inconvenience to you, we aim to reduce those timescales wherever possible. Changing your mind When you open a new account we will inform you of any right to cancel. If you do want to cancel, please write to us at 1 City Road East, Manchester M15 4PU within 14 days of receiving our letter and we will be happy to cancel the account. Any requests for payment we receive after you exercise your right to cancel will be returned and products or services which require this account to operate will also be cancelled. We will repay to you any credit balance in your account together with any interest due if credit interest is paid on your account. You will be required to pay any charges for day-to-day banking or other services that you may incur before we receive your request to cancel the account and we will deduct these charges from the monies we return to you. If your account is overdrawn you must repay the outstanding balance together with any interest and charges that you owe us within 30 days of exercising your right to cancel. Where possible we will help you find an account from our range which better suits your needs. The right to cancel does not affect your ongoing right to close the account as set out in the terms and conditions. 23

27 Our service promise. If you experience a problem, we will always try to resolve it as quickly as possible. Please bring it to the attention of any member of staff. Our complaints procedures are published at lloydsbank.com/business/contactus

28 I d like to talk about our banking Go to lloydsbank.com/business Check eligibility, calculate payments, apply online Call us on Lines are open 7am-8pm Monday to Friday and 9am-2pm Saturdays Visit your local branch Please contact us if you d like this information in an alternative format such as Braille, large print or audio. If you have a hearing or speech impairment you can use Text Relay (previously Typetalk) or if you would prefer to use a Textphone, please feel free to call us on (lines open 7am-8pm Monday to Friday and 9am-2pm Saturdays). Important information Your call may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No Telephone: Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Licensed under the Consumer Credit Act 1974 under licence number We subscribe to the Lending Code; copies of the Code can be obtained from Lloyds Bank plc is covered by the Financial Services Compensation Scheme and the Financial Ombudsman Service. (Please note that due to the schemes eligibility criteria not all Lloyds Bank Commercial customers will be covered by these schemes.) Cardnet is a registered trademark of Lloyds Bank plc. Cashpoint is a registered trademark of Lloyds Bank plc. Rates and prices correct as at September M57275 (09/13)