Getting rid of long standing overdraft

alibala

Hi, hoping someone might have some advice - we've had an overdraft of nearly £4K on a TSB personal account for years (well over 10) - we've been struggling financially for a few years now and I'd like to stop paying TSB around £50 a month in overdraft charges. I did write to them in 2014 to claim charges back (which would have been around £3200 then) but got a sorry no can do and a £50 payment as a goodwill gesture but didn't take it any further due to illness. I'm sure we've paid way over what we have as an overdraft via charges. I'm not in a position to take on a loan from someone else to clear it and at present have no spare cash to pay it back so any ideas would be gratefully accepted - has anyone been in this position and managed to work something out with their bank? Thanks!

colsten

You will get better advice posting your query over on the Debt-Free Wannabe board.

Fill in an SOA and post it over there, for the helpful folk to have a look.

Willing2Learn

I agree. If you post your Statement of Affairs (SOA) up on the Debt-Free Wannabe (DFW) board, then you will get a lot of advice, guidance and support.


Re: To have a chance of reclaiming your charges. To be eligible, you would need to fit in one of the following categories:

• You are in real financial hardship. For example, if you are struggling to buy necessities and pay bills, or you’ve lost your job.
• The charges are unfair compared to what you did. For example, if you went overdrawn £1 and were charged £35.
• You’re stuck in a spiral of charges. This might happen if the charges keep putting you into the red, and the overdraft keeps costing you more in charges.

https://www.moneysavingexpert.com/reclaim/bank-charges/


Edit: And welcome to the forum alibala

born_again

As above.
Spend less is the obvious one. (not meant in a harsh way)

If you contact them on the basis you are struggling to pay they may come to a agreement to waive interest so long as you pay a fixed amount it month and clear the overdraft over time
But it will ruin any chances of further credit.

eskbanker

alibala wrote: »

Hi, hoping someone might have some advice - we've had an overdraft of nearly £4K on a TSB personal account for years (well over 10) - we've been struggling financially for a few years now and I'd like to stop paying TSB around £50 a month in overdraft charges.

Unfortunately things are about to get much worse - the FCA-mandated change to overdraft charging means that banks need to simplify their fee structure by April and those that have declared their intentions thus far have set a standard rate of circa 40%, rather than the 15% you're currently paying (assuming interest is included in the £50 monthly charges).

It's possible that when they announce their new rate, this may provide an opportunity to negotiate, as there will be plenty who will struggle with the new regime, but even then, you'd be doing well just to get it back to anywhere near what you're currently paying.

As well as the sound advice in the above posts, probably also worth reading https://www.moneysavingexpert.com/banking/cut-overdraft-costs/

alibala wrote: »

I'm sure we've paid way over what we have as an overdraft via charges.

At the risk of being harsh, this is irrelevant....

alibala

Thanks for the replies and advice. I'll check out the other section. No worries on harshness!! Am clearing debts as quickly as possible and this is just one on the list but not sure of best way to approach bank. Cheers