Enough is enough

Wednesday March 11th 2009

Letter to:
Cardnet Merchant Services, Basildon House, Christopher Martin Road, Basildon, Essex, SS14 9AA


11/03/2009

Re: Overcharges and lack of action and accountability in dealing with it

Account Name: G***** Ltd
Merchant Numbers: 54043650******* (website terminal customer direct entry)
54043650******* (online terminal manual entry)


Dear Lloyds

Complaint about the Complaints Procedure
First let me complain that I have to write this letter at all. We are now in 2009 and telephones were invented in 1876, a full 133 years ago. However, despite numerous telephone calls and emails our problems and overcharges continue without any resolution or refunds from Lloyds. For all I know, we are still being overcharged as I write this.

The Main Complaint
On April 23RD 2008 we (Geyser Ltd) signed an agreement to put all of our card processing transactions through Lloyds TSB Cardnet. The prices were agreed and I still have the documentary proof to show what was agreed. However, on receipt of the worst invoice layout I have ever seen in my life, I was able (after studying for a Maths PHD and purchasing the strongest bi-focles in Specsavers) to actually decipher the invoices from yourselves.

Lo and behold the vast majority of our processing costs are being charged at a fee that was never agreed! And surprise, surprise, it was not a ‘bank error in our favour’ but an overcharge. Here are the details and an example from one bill covering the period October 1st 2008 to October 31st 2008……..

VISA NON-QUAL SERVICE CHARGE - £7,119.45 at 1.65% charges
MASTERCARD NON-QUAL SERVICE CHARGE - £42,976.92 at 1.69% charges

1. We were never quoted any non-qual service charge percentages.
2. Non-qual service charges were never even mentioned at the time of signing the contract.
3. Your explanation of the reasons why were are being charged non-qual in your letter to us (your ref 338086500885) is nonsense. Firstly any ‘international cards’ and world signia cards’ do not represent 80% of our processed transactions. Any person at Lloyds TSB doing a proper investigation would have seen this. Secondly, 3D secure IS switched on and live on our website and always has been to our knowledge. If you think it has not, prove it! Send us details of specific transactions for each month that were processed and were not 3D secure. Protx have confirmed on the telephone that the 3D secure process is working perfectly on our site. This second Lloyds TSB reason for NON-QUAL service charges is also nonsense.
4. Our AGREED visa and mastercard processing charges are 1.15% and 1.19% respectively. Therefore you OWE US approximately 10 months worth of overcharges amounting to around £2500.00. We want this money back urgently!
5. We want written proof that your systems have been fixed to prevent any further overcharges.
6. We were quoted a contract release fee for leaving Lloyds TSB card processing within the first 12 months. Unless you can direct me to a clause either in the contract we signed or in the accompanying operating manual, this charge is illegal and not enforceable. Please show me exactly where this charge appears in any documentation we have signed or seen.


So far we have been trying in vain to get this solved since the beginning of this year. This ridiculous time span without even a single telephone call back or email from Lloyds TSB Cardnet just shows your lack of customer care. By April 1st, we will have taken our £1,000,000 of card processing to the HSBC and by April 2nd I will start proceedings to take you to court.

What I want from Lloyds now
An answer
A full refund of our money (could be as much as £2500 or more)
Confirmation in writing that there will be no future overcharges
A refund of our costs of endless telephone calls to Lloyds
A refund for out time wasted dealing with you
A refund for my time writing this letter

Free Marketing for Lloyds
Of course you love to tell everyone that they should ‘come along for the journey’. Well our journey has been diabolical and I am very keen to let your millions of customers and competitors know it. So I have created an online blog for the world to see at
http://lloydstsbcardnet.blogspot.com/ . I am considering creating a Google adwords campaign to promote it, but I am sure Google will find it anyway.

Also the following will be sent a copy of this letter…..
Lloyds Banking Group Major Shareholders
Financial Services Authority
Financial Ombudsman
BBC Online Business Editor
HSBC Head Office
Santander Banking Group Head Office
Royal Bank of Scotland Group Head Office
Barclays Banking Group Office

I look forward to hearing from you (before I spend £25 taking you to court I hope).