TSB, overdraft and loans

cleverinvestor

Hi, after some advice if possible please. Ignore my sarcastic username, I'm not clever!

I banked with Lloyd's for over a decade before it merged with TSB. Following the separation I'm now with TSB.

I have an overdraft that I use every month and I pay charges against this agreed overdraft. It's a planned overdraft and I never go over that limit into an unplanned overdraft. I pay between 15 or 20 a month to use it. I know it's not clever but it's the situation I'm in and I'm doing my best to get out of it. I currently need the overdraft and I hope it to be gone within 6 months.

I recently transferred 1400 to a TSB credit card on 0%. So I now have my agreed over draft and credit card.

It's all in hand and I never miss a payment and I pay my wages into the account every month.

Since the move to TSB I keep getting phone calls from my local bank. I ignored at first because I didn't answer the phone as it was a number displayed as unknown on my mobile. They left a message to tell me it was URGENT I call them back to discuss my account. Basically they've looked at my situation and want to give me a loan over several years to pay off my overdraft and credit card. They sent me some paper work which basically trebled my monthly outgoings on the debts I have with them. They are being very aggressive in my view with trying to get me to have a loan.

Now, I don't want this loan. Financially it makes no sense, it's more expensive, the credit card will be moved elsewhere when the 0% finishes and I have my overdraft in control.

My concern is that I currently need the overdraft. If I refuse this loan, do you think TSB will remove the overdraft straight away and freeze the account? I assume they have rights to remove it but do they have to give me any notice. Lloyd's site says 30 days, I can find nothing on the TSB site.

I don't understand why they want me to take a loan on a higher APR to pay of something on either 0% or very low charges.

Do you think their staff now have to sell products to get bonuses and I'm just an easy target.

I'm really concerned they will just turn around and remove the overdraft and leave me In a tricky situation where I'm trying to get out of it. In addition not only did they offer money to pay off my current debts, she was very keen to ask me if I planned on buying a new car or holiday. Surely by the state of my accounts she would be foolish to offer me such a large loan. She had also been through my accounts and could see where my mortgage was going and said she would arrange to get someone from their mortgage team to call me. Why can't they just stop trying to sell me stuff?

If they remove my overdraft they will get no income from me, at the moment they get a monthly charge from me. Would they be happy to lose this if they cancel my overdraft just because I don't take a loan? I'm trying to get my debts down, not take on more debt to service another debt. I'm pretty annoyed
Many thanks

happy_bunny_2

It's a tricky one, they can remove the OD and I think from ones I've had they usually give you 30 days, but there was a get out clause of 'unless we feel you can't meet your current commitments' or like.

How much is the OD?

Can you put it on a 0% card?

CLAPTON

how much do you owe on each debt?
what's your income?

cleverinvestor

Thanks. OD is 3k and I often use much of that. But my wages bring me right back up again. So it's not as if I constantly over spend, or go over the agrees limit. Or miss charges on the account. I've done nothing that they have not agreed too.

cleverinvestor

CLAPTON wrote: »

how much do you owe on each debt?
what's your income?

Income is 46k but I'm the only person earning. My partner looks after our two children. We take No government assistance. So I put the best part of 2500 in the account each month. It's not as if I've stopped doing that and they can see no income or way that I would not pay the debts

Wilkins

cleverinvestor wrote: »

Income is 46k but I'm the only person earning. My partner looks after our two children. We take No government assistance. So I put the best part of 2500 in the account each month. It's not as if I've stopped doing that and they can see no income or way that I would not pay the debts

You are in a precarious situation which I think you have assessed correctly. I'd certainly be suspicious of what TSB are trying to do and it sounds as if their approach might be to try and screw more money out of you and, if that fails, dump you.

I can't offer much advice except to say that it might be worth posting an SOA on the DFW board and gather suggestions for reducing expenditure in case the SHTF.

CLAPTON

is the OD reducing each month or does it go up to the previous total?

could you apply for a 0% CC that allows BT to bank a/cs like MBNA?

in any event unless you already have them it might be sensible to to make sure you have sufficient spare capacity on a CC just in case TSB withdraw your OD.

cleverinvestor

Thanks. The OD is actually going down because I'm ensuring I'm better with money this year. So I'm gradually going back towards 0 but it's gonna take a few months. I could move the debt to a cc if need be. But ideally I would like to keep the OD and come to an arrangement where I can for 6 months or so. Biggest concern is that they just remove it. I guess I'll only find out if I speak to them

Tixy

If your account is not getting back to positive even on payday then you are probably at a greater risk of your overdraft being recalled.

Generally banks are wary of people having/using an overdraft limit that is in excess of their monthly net pay.

Once its to the point where it is positive on payday but that you then use the overdraft to through the month then the chance of it being recalled should reduce (although as you are aware it can be recalled at any time).

It is very unusual for an overdraft to be recalled with no notice at all but the T&Cs usually allow in case of suspected fraud/money laundering etc. So you would likely get 30days notice at least.

The other thing to look at is when the annual review on your overdraft is due - at that point to its potentially at greater risk of being recalled.

cleverinvestor

Thanks all. What I'll probably do is sell 4 oz of Gold bars. I really didn't want to but I'll sell these to pay off the OD to get them off my back.

Wilkins

cleverinvestor wrote: »

Thanks all. What I'll probably do is sell 4 oz of Gold bars. I really didn't want to but I'll sell these to pay off the OD to get them off my back.

For real? You are in debt with no EF and you are holding gold?:eek: