Lloyds Bank has addressed fierce criticism after deciding to remove a feature that allowed customers to nickname their accounts in online banking. One dissatisfied customer contacted the bank, calling the change 'completely incomprehensible.'
Customer Frustration
The customer took to social media to voice their complaint, stating they were 'very tempted to follow Martin Lewis advice and switch bank' despite being a loyal customer for decades. Consumer champion Martin Lewis often encourages account holders to consider switching if a better deal is available elsewhere. Many banks currently offer switch incentives to attract new customers, such as Barclays offering £200 and Nationwide Building Society providing £175, along with other attractive deals from various providers.
'Inexplicable' Change
The customer's frustration stemmed from Lloyds having 'inexplicably removed the nicknames I've used on my various accounts and cards for the last 35+ years in online banking.' They pressed the bank for an explanation as to why the feature was scrapped.
Lloyds initially apologized for the customer's experience and urged them to send a direct message regarding their complaint. However, the customer pointed out they had already contacted Lloyds about the matter, claiming to have received a letter from the complaints department 'saying I just have to put up with it, there's no longer an option to use nicknames in online banking.'
Bank's Response
Lloyds responded: 'I am sorry to hear you are unhappy with this decision, this is a business decision which has been made. While renaming won't be available online, you can still view and manage nicknames in the app.' The customer was far from satisfied with this response, firing back: 'It's still completely incomprehensible. What possible reason is there for such a 'business decision'? And - as you're probably aware - if you deal with someone's accounts with power of attorney you cannot use the app.'
Power of Attorney Concerns
The customer later revealed that they hold power of attorney for their mother and cannot use the app to manage her accounts, meaning the loss of nicknames makes it 'even more difficult to differentiate between her accounts and mine.' Lloyds offered further clarification: 'You can still rename accounts in the mobile app, but nicknames have been removed from online banking and credit card renaming is no longer available. We appreciate this won't fully help if you rely on online banking due to power of attorney.'
Small Business Impact
The customer continued to voice frustration, arguing that removing the nickname feature is 'really unhelpful if you run a small business and have several accounts.' They asked how to get the decision reversed. Lloyds responded: 'We understand this matters. Changes like this are carefully considered, and while we're not able to reverse it directly, we understand it may not meet everyone's needs.' The bank also indicated that if the customer wanted to submit additional feedback or escalate the issue, they could contact them via the complaints section on the group's website.
