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

Transcription

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

2 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

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 11 We need some help with our account 15 Joint and Several Liability 19 Current Account Switch Guarantee 21 Your Current Account Switch Agreement 22 Help when you need it 25 Our service promise 28

4 What you need to know We offer convenient and flexible banking to support your organisations needs, including; Online for Business, our 24/7 Internet Banking service1, gives you access to your accounts whenever you need. Securely access your business accounts on the move with our Business Mobile Banking app2. A business management team who are on hand to help you with your day-to-day tasks and more complex banking needs. Any questions? Simply call us on Lines are open 7am 8pm Monday to Friday and 9am 2pm Saturdays. Once you have an open and active current account with us, depending on your eligibility, there are two services available. Current Account Switch Service We take care of everything and guarantee to complete your switch in seven working days, finishing on the day you choose. All your incoming and outgoing payments will be transferred and guaranteed3. We ll arrange for your old bank to close your previous account and transfer any credit balance to your new Lloyds Bank account. Any payments to or from your old account will be automatically redirected or forwarded for a period of at least three years. 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. Transfer of Payment Arrangements Service You tell us which parts of the switch you want us to handle. We ll automatically transfer any payments you specify. If you require us to transfer any outstanding credit and/or debit balance from your old account, we will. We ll arrange for your old bank to close your previous account if you ask us to. For more information about switching your account, visit the 'Help & Support' section at where you will find details of frequently asked questions. 1. Occasionally we may need to carry out essential maintenance to our internet banking service, resulting in some interruption to the service. 2. We don t charge you for Mobile Banking but your mobile operator may charge you for certain services such as downloading or using the app, so please check with them. You will need a smartphone running ios or Android. The app is not compatible with some older versions of the operating systems check the Apple App Store or Google Play for more details. Business Internet Banking registration required. Services may be affected by phone signal and functionality. Use of Mobile Banking is subject to our Business Internet Banking Terms and Conditions. 3. SEPA Direct Debits cannot be cancelled or transferred for you. You will need to advise your Creditor that you wish to cancel the mandate or transfer your SEPA Direct Debit to your new account. 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? Speak to us for help Help when you need it You can talk to your business management team on the phone. They will work with you to support your individual business needs and help you take advantage of opportunities as they arise. As your business grows, they can also offer support for more complex banking needs. You can speak to our advisers on between 7am 8pm Monday to Friday (except Bank Holidays) and 9am 2pm on Saturday. 2

6 The clearing cycle Day 6 The funds from a returned cheque will not be debited*. Day 0 Your cheque payment goes in 6 working days 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 business management team or your local branch. More information about how the clearing cycle works across UK banks can be found at *Unless you are a knowing party to fraud. 3

7 We need to get the most out of our account Flexibility and convenience Organisations with annual turnover below 50,000 Lloyds Bank Treasurer s Account is designed for non-profit organisations with an annual turnover below 50,000 as there are no charges for day-to-day banking1. 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 Business Banking Charges for additional services leaflet. Annual turnover of 50,000 to 1million If your organisation has an annual turnover of 50,000 or more, you will qualify for our Business Current Account. There is a monthly fee and charges for cash, cheques and other services. However, all electronic payments2 such as Debit Card, Standing Orders and Faster Payments are free and we have plenty of ideas about how to help you keep charges as low as possible. We don t pay credit interest on our Treasurers account. For more information on all our charges please call our business management team on or ask in branch for a copy of our Business Banking Account Charges brochure. We don t pay credit interest on our Business Current Account. 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 Proving your identity leaflet. Copies are available in branch. 1. Free business banking includes cheques, standing orders, cash, UK Sterling Direct Debits, deposits and withdrawals. All we ask is that you operate your account in credit or within agreed limits. 2. Free electronic payments include UK Sterling Direct Debits, Standing Orders, Debit Card Transactions, Lloyds Bank/Other Bank ATM Withdrawals, Internet/Phonebank Debits/Credits, Faster Payment Debits/Credits, Internet Bulk Payments and Automated Credits. 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: Within 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. Within 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 Business Banking Payment Transactions 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. Card Payment Processing Lloyds Bank Cardnet helps your business meet customers needs by accepting payments from all major cards in person, online or over the phone. Our merchant services are tailored to your specific needs and business size, and are flexible to change and grow with you. Cardnet offers high levels of security and fraud protection, intuitive online reporting tools and excellent UK-based customer support all at a competitive price. For more details on accepting card payments, visit lloydsbankcardnet.com 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 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 Business Banking 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. 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 services 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 business management 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 45 days interest-free credit on all retail transactions 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 1 A cost-effective way of paying for everyday expenses and helps cashflow by providing up to 45 days interest-free credit on all retail transactions. You can decide how many cards to issue and what limits to set 2. 1 Our Charge Cards are now Contactless. 2 SEPA Direct Debits cannot be used to settle your balance on your Business Charge Card. Business Debit and Charge Cards are approved subject to status. 88

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. Internet banking1 Use Internet banking for quick and secure financial transactions all year round. depositpoint TM Make deposits quickly in branch with depositpoint. 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. 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. Mobile Banking You can now access your business accounts on the move with our new, secure Business Mobile Banking app2. You can also register for our free Text alerts service to receive daily or weekly updates on your account balance and recent transactions. 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 for these services are covered in the leaflet inside the back pocket of this brochure. Deferred checking Instead of checking the details of an over-the-counter deposit while you wait, we check and credit your account. Deposits made during branch opening hours will be credited to your account by the end of the branch working day. This is available in most branches. 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, 32-Day GBP Notice Accounts if you don t need instant access and Fixed Rate 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 business management team. 1. Occasionally we may need to carry out essential maintenance, resulting in some interruption to service. Cash machines You also have access to Lloyds Bank, Bank of Scotland or Halifax cash machines where you can check balances and, of course, withdraw cash. 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. Immediate Deposit Machine You can use your Business Debit, Cashpoint Card or on selected accounts by entering your Sort Code and Account number without the need for a card, to make fast cash and cheque deposits in our Immediate Deposit Machines, which are available at most Lloyds bank branches. 2. We don t charge you for Mobile Banking but your mobile operator may charge you for certain services such as downloading or using the app, so please check with them. You will need a smartphone running ios or Android. The app is not compatible with some older versions of the operating systems check the Apple App Store or Google Play for more details. Business Internet Banking registration required. Services may be affected by phone signal and functionality. Use of Mobile Banking is subject to our Business Internet Banking Terms and Conditions. 10

14 Borrowing for your club, charity or society Financial flexibility 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 business management 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 12 months. We will require a first legal (of first standard security) charge over property as security. Your business management 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 business management 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. * 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. 11

15 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 business management team for a copy or visit lloydsbank.com/financeapplicationchecklist 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 Õ Please call Õ If you need to call us from abroad, 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. 12

16 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/businessloansandfinance 13

17 14

18 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 business management 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 Having problems logging 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 business management 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 on-screen 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. * Occasionally we may need to carry out essential maintenance, resulting in some interruption to service. 15

19 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. For more information go to our Privacy Statement at lloydsbank.com/businessibprivacy 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. * Lloyds Banking Group includes companies using brands including Lloyds Bank, Halifax and Bank of Scotland and their associated companies. More information on Lloyds Banking Group can be found at lloydsbankinggroup.com 16

20 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 contact us 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. Don t recognise a transaction on your account Call our team of UK-based 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. 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 business management 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 Business Banking 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 Business Banking 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 Business Banking 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 lloydsbank.com/businessretailratesandcharges 17

21 18

22 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 Business Banking 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. 19

23 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. 20

24 The Current Account Switch Guarantee The Current Account Switch Guarantee ensures your current account will switch on a day of your choice, your payments will be automatically transferred and redirected to your new account, and in the unlikely event anything goes wrong with your switch, we will refund any interest (paid or lost) and charges (incurred on your old or new current accounts) as a result of this failure as soon as it is brought to our attention. Current Account Switch Guarantee We have designed the Current Account Switch Service to let you switch your current account from one bank or building society to another in a simple, reliable and stress-free way. It will only take seven working days. As your new current-account provider we offer the following guarantee. The service is free to use and you can choose and agree your switch date with us. We will take care of moving all your payments going out (for example, your Direct Debits and standing orders) and those coming in (for example, your salary). If you have money in your old account, we will transfer it to your new account on your switch date. We will arrange for payments accidentally made to your old account to be automatically redirected to your new account. We will also contact the sender and give them your new account details. If there are any issues in making the switch, we will contact you before your switch date. If anything goes wrong with the switch, as soon as we are told, we will refund any interest (paid or lost) and charges made on either your old or new current accounts as a result of this failure. 21

25 Current Account Switch Agreement (A) (B) (C) (D) This Current Account Switch Agreement ( Agreement ) is made between you (the individual(s) or entity who or which demonstrates consent to its terms) and us, Lloyds Bank plc. The Agreement is made up of the Consent, the Service Conditions and information about Your Right to Cancel the Agreement. Please read it carefully as you will be legally bound by it. If you do not understand any part of it, please contact us (please refer to section 5 for details of how to do this). The Agreement will end 3 years after your selected Switch Date, e.g. if your Switch Date is 10th October 2016, this Agreement would end on the 9th October 2019; or if your switch date was 8th October 2013 this agreement will end on 7th October In some circumstances, the Agreement may automatically be extended in accordance with clause 1.14 of the Agreement. In this Agreement: Your New Account is the account held with us that you are switching to. Your Old Account is the account that you are switching from at your Old Bank. Your Old Bank is the bank, building society or other payment account provider displaying the Current Account Switch Service (CASS) Trustmark that you are switching from. The Switch Date is the date that we will arrange for any credit balance to be transferred from your Old Account to your New Account. We will complete the switch of information about your payment beneficiaries and your regular payment mandates from your Old Bank to your New Account on the same day. The Switch Date must be a working day and not a bank holiday that is observed by either your Old Bank or us. For CASS a Current Account means a sterling (GBP) account held in the name of one or more persons and used to make or receive payments. Consent You (or each of you, if more than one of you is required to authorise your account switch) agree and confirm that: You will be bound by the terms of this Agreement (made up of this Consent, the Service Conditions and information about Your Right to Cancel the Agreement). You have given your consent for us to switch your Old Account, which is a qualifying sterling current account, to your New Account. You have satisfied yourself that your New Account meets your needs and delivers the services you require although the protections, features and benefits may not be the same as your Old Account. You will select and agree a Switch Date with us. The switch process begins 6 working days before the Switch Date. You have provided us with an Account Closure Instruction for your Old Account which cannot be reversed or cancelled by you any later than the close of business 7 working days before the Switch Date. You have given your consent to the redirection of all payments to and from your Old Account to be made to and from your New Account for 3 years after your Switch Date, or longer in accordance with clause 1.14 of the Agreement. All information that you have given to us for the purposes of the switch is complete and correct. Service Conditions 1. The Current Account Switch Service 1.1 The Current Account Switch Service Guarantee is issued by us after you have consented to this Agreement and Account Closure Instruction. This means that if you have any questions regarding your switch these should be directed to us, unless otherwise advised. 1.2 There is no charge for the Current Account Switch Service, although there may be other taxes or costs that are not charged by us or paid via us. 1.3 You can change the Switch Date at any time up until the close of business 7 working days before the Switch Date that you have previously agreed with us. 1.4 The switch process begins 6 working days before the Switch Date. We will tell you that the switch is underway and when it is completed, and also if there is any reason why your switch request cannot be initiated or completed. 1.5 We will ensure that your existing regular payment mandates (e.g. Standing Orders, Direct Debits and bill payment mandates) are set up on your New Account and details of your existing payment beneficiaries are transferred to your New Account. In cases where we cannot match the payment frequency of your existing regular payment mandates, we will contact you to agree alternative arrangements. Note: If you have arranged to make recurring payments using your Old Account debit card number, your Old Bank won t know your New Account debit card number so won t be able to transfer these to your New Account. This means that there is no guarantee that payment requests sent to your Old Account will be redirected to your New Account. The supplier may contact you to request the details of your New Account debit card. We recommend that you contact the supplier to set up a new recurring payment to ensure any service you receive (e.g. insurance) is not interrupted. 1.6 We will also transfer any future dated payments (e.g. with a due date after your Switch Date) that you set up on your Old Account to your New Account to ensure these are made on the date originally requested. 1.7 The regular payment mandates that we will set up on your New Account as part of the switch will be in operation from the day after the Switch Date. 1.8 If you have any existing regular payment mandates that are non-sterling, or that quote a BIC or IBAN, these won t be switched to your New Account automatically. If we can facilitate non-sterling mandates, or ones that quote a BIC or IBAN, you will have to provide us with the relevant details separately so that we can set them up on your New Account. 1.9 If you make any changes to your regular payment mandates on your Old Account or set up any new payment beneficiaries on your Old Account on or after the 6th working day before the Switch Date you must tell us, otherwise these changes will not be implemented on your New Account Your Old Bank will forward any funds remaining in your Old Account to your New Account on the Switch Date. There may be a short period when the balance is being transferred when it will not be possible to access the funds being transferred Funds will be retained by your Old Bank to cover any transactions made before the Switch Date on your Old Account which are still in the process of being cleared on the Switch Date. On the day that your Old Bank no longer needs to retain funds to cover transactions that are being cleared, it will transfer them to your New Account and they will be credited to your New Account no later than the next working day. Funds will also be retained by your Old Bank to cover debit card transactions that have already been authorised but which have not yet been paid out of your Old Account If you have outstanding debt on your Old Account (including any fees or charges) after the Switch Date, your Old Bank will tell you. You are liable for any outstanding debt on your Old Account remaining after the Switch Date For 3 years after the Switch Date if your Old Bank receives payments or requests for payments which relate to your Old Account, subject to compliance with applicable laws, it will redirect these to your New Account. However, if there is an outstanding debt on your Old Account, your Old Bank is entitled to use any funds or payments it receives (including by cheque) in full or part settlement of the debt on your Old Account. The originators of any redirected payments or payment requests will be advised of your New Account details. 22