Want to leave TSB - Have overdrafts

razorhazor

Hi

I have my main bank accounts (current/bills) with TSB and an overdraft on each, both OD's come to 2k in total.

I would like to move away from TSB as I have no faith that the bank is improving. I have an account with another bank who won't yet offer me an overdraft which covers the switch.

What are my options? I feel like I'm stuck with TSB until I pay down the outstanding OD which doesn't feel 'fair'.

Would they be open to converting it to a form of loan with a repayment schedule? or would they simply demand the amoutn back when my wage moves over?

Just trying to get a feel for options while TSB review my complaint (which they've been doing for 10 weeks already...).

Thanks

Willing2Learn

Get a money transfer card at 0% APR and use it to pay off your overdrafts.

https://www.moneysavingexpert.com/credit-cards/money-transfers/

Edit: And welcome to the forum razorhazor

razorhazor

thanks for the introduction!

More credit isn't an option for me I'm afraid. I've got a bit of work to pay down existing credit before I can go down that avenue (high utilisation).

Willing2Learn

OK. So if your not eligible for a card then the chances are that you won't get a loan from anyone unless it has a hideous APR. If it were me, I would stay with TSB and use every penny to pay down the overdrafts asap (as they can be withdrawn without notice). As soon as overdrafts were gone, I would do the full switchover.

masonic

If it's been 10 weeks, don't wait, take your complaint to the Financial Ombudsman Service. If TSB deals with it in the mean time you can just cancel your FOS complaint.

One of your options is to negotiate an exit as part of your complaint. If you can agree to repay over a reasonable period of time, then it would seem fair to convert the OD to a personal loan at the same rate as you're currently paying so that there is no barrier to you switching elsewhere..

[Deleted User]

Save up, cut back, clear the overdrafts then switch

Don’t expect them to write it off as a goodwill gesture

Any arrangement to change the overdraft to a loan or going into an AP will be reflected on your credit files as well and visible to other lenders

Mr_Goodkat

razorhazor wrote: »

Hi

I have my main bank accounts (current/bills) with TSB and an overdraft on each, both OD's come to 2k in total.

I would like to move away from TSB as I have no faith that the bank is improving. I have an account with another bank who won't yet offer me an overdraft which covers the switch.

What are my options? I feel like I'm stuck with TSB until I pay down the outstanding OD which doesn't feel 'fair'.

Would they be open to converting it to a form of loan with a repayment schedule? or would they simply demand the amoutn back when my wage moves over?

Just trying to get a feel for options while TSB review my complaint (which they've been doing for 10 weeks already...).

Thanks

I have more faith in TSB than I do in you and that is saying something with their recent record.

Two accounts in overdraft so paying two times usage fees each much plus interest is madness.

Overdrafts are meant for short term borrowing, are very expensive and repayable on demand.

Try Nationwide Flex Direct as offer twelve months interest free overdraft and even if they won’t give you the full amount move what you can

To be frank I do not think you have a bank issue you have a budgeting issue and are living beyond your means, visit the debt free wannabe board on here for tips!

Good luck!

razorhazor

!!! wrote: »

Save up, cut back, clear the overdrafts then switch

Don’t expect them to write it off as a goodwill gesture

Any arrangement to change the overdraft to a loan or going into an AP will be reflected on your credit files as well and visible to other lenders

Yep, thats what I'm doing. Plus I'm not expecting TSB to write off a debt I owe, I just want a bank I can use so exploring options before I pay off my OD.

razorhazor

Mr_Goodkat wrote: »

I have more faith in TSB than I do in you and that is saying something with their recent record.

Two accounts in overdraft so paying two times usage fees each much plus interest is madness.

Overdrafts are meant for short term borrowing, are very expensive and repayable on demand.

Try Nationwide Flex Direct as offer twelve months interest free overdraft and even if they won’t give you the full amount move what you can

To be frank I do not think you have a bank issue you have a budgeting issue and are living beyond your means, visit the debt free wannabe board on here for tips!

Good luck!

thanks, your tone is very helpful, really helped your point.

Thanks for being so grown up...

:T

razorhazor

masonic wrote: »

If it's been 10 weeks, don't wait, take your complaint to the Financial Ombudsman Service. If TSB deals with it in the mean time you can just cancel your FOS complaint.

One of your options is to negotiate an exit as part of your complaint. If you can agree to repay over a reasonable period of time, then it would seem fair to convert the OD to a personal loan at the same rate as you're currently paying so that there is no barrier to you switching elsewhere..

Thanks, I might try that.

Dobbibill

Welcome to the forum.

Have you done a SOA? Having your budget all written down can sometimes help you see any gaps. If you aren't eligible for other lending at a cheaper rate then try to skim things back to the bone to clear as much as possible soonest.
Failing that set all your bills to leave at the end of the month so the max funds are in the account for the longest time possible meaning your charges will be less.

All the best.