1p in credit - should we close the account?

[sosumi]

Hi, we've just (finally and happily) repaid an overdraft with TSB that they put us through Hell over. They changed it from our joint account to my sole account, sent it to Buchanan Clark and Wells, back to TSB Collections, back to BCW with a spell at Sechiari Clark and Mitchell. And then they just turned it back into our joint account which they had increased the overdraft limit on to cover the charges even they admit they shouldn't have applied! In fact they admit to £111 plus in unjust charges, in writing.

We started a complaint with them last year about it, and it escalated into a complete dispute over not only that account but two TSB Credit Cards that they admitted they had no agreements for.

Well, it seems like they sold the card accounts to Credit Security Ltd and APEX, after admitting they had no agreements for them, but the joint account has still been operating, so we could pay a bit off each month. Today, with a fair wind behind us, we have repaid the entire overdraft and put the account in credit by one penny.

When we got home I went on their internet site and we've cancelled the overdraft. So all that's there is 1p credit!

We are now going to give them hell over the charges they admitted in writing they shouldn't have applied, but as the joint account was being administered by their Collections Department I don't trust them an inch, after what they put us through.

We thought if we leave the penny in, they won't be able to close the account, which would make it easier for us to pursue them. But we had a letter last week advising us of the new terms and fees for planned/unplanned overdrafts starting April 28th and frankly, I don't know what they might do next! Paying the overdraft off has all but wiped us out this month (but really worth it!), and they haven't been charging interest, but what if they decide to add interest/charges now that we've cancelled the overdraft??

Should we just close the account? If we did, could we still pursue them for the charges?

Can anyone advise please? Thanks

[Michael Browne]

Should we just close the account?

If you don't intend to use it again and have another bank a/c, yes

 

If we did, could we still pursue them for the charges?

Yes

[sosumi]

Brilliant! Many thanks Michael, first job for tomorrow then!

It'll be a big relief TBH, I just don't trust them.

Thanks again! Woohoo!!! Justice!

[photoman]

Actually...... maybe keep the 1p in the account ?

 

Provided there's no monthly or itemised fees payable by yourself, It'll then cost them loads more than this each month to send you statements, administer the account etc

[dilbert1]

Another vote for keeping the account. It costs them a lot to sent statements, give you the account balance when you ask in the bank, etc.

Also, might even be useful as a parachute account if you ever try and claim charges back from anyone else!

 

All this advise is voided, obviously, if they start charging any sort of monthly fee.

[sosumi]

Thanks Photoman and D1, but we went in this morning and did the deed

I don't trust their 'Collections Centre' one little bit.

I'd rather set about getting those charges back from a position of being in control of our money, and while ever that account was still open, they have a 'way in' to do whatever they like.

We signed the form (after getting our penny back - they don't have a charity box for just pennies, it has to 20p!) and came away feeling light-headed. We were their loyal customers for a quarter of a century, and they treated us like dirt. So it's their turn now.

[elsinore]

I don't trust their 'Collections Centre' one little bit.

 

Very wise.

 

We were their loyal customers for a quarter of a century, and they treated us like dirt.

 

That's the sad part.

 

Els

[sosumi]

PS, this was the letter that decided it. We'd had a £600 overdraft before starting a DMP with Payplan, they ignored Payplan and added charges etc, then turned it into my account (as opposed to joint), and then mucked about like I've said above until they went back to pretending nothing had happened, unilaterally increased the o/d to over £700 to cover their charges and started sending us statements again. We'd been paying £10 a month plus some extras and had got it down to £515 before this letter.

They do go on to say something about 0% but applied to what? We don't talk bank-speak and never will. But we will get our money back. Thankfully it's near the end of the month as we even raided our decimal jar to get the cash together! (Decimal jar re-started with this morning's 1p ):

 

[sosumi]

An update on this. We closed the account in the branch. The clerk at the enquiries desk asked us to withdraw our penny so we could close the account, and he'd fill in the form he was taking from the computer. We went and got our penny out, returned to him, signed the form and left. He said it was closed immediately but we didn't need a receipt as the Head Office would send us a final statement.

We had a reply last week. They returned the form saying they couldn't close the account. They also enclosed an open letter to someone else saying they'd closed her account and would donate the penny to Barnado's!!!:o

 

These people seriously drive me crazy. This bank has done nothing but mess around with our heads from the outset of our difficulties.

The last part of the S.A.R - (Subject Access Request) wasn't received until January.

I thought we'd be too late to report them to the FOS. But they extended the time of the complaint because of the delay in providing SAR data.

They openly admitted not having credit agreements for either of the 2 credit cards we had with them. They admitted that the charges of £111 when we were paying them through Payplan were wrong, and offered to refund them plus give us a cheque for £50 if we signed a waiver to stop us taking further action. We refused the offer, but we have it in writing that those charges were wrong.

They rewrote the defaults on both credit cards with the CRAs, stating account closed with £xxxx.xx balance outstanding on both accounts. They then (it appears) sold the alleged debts to Credit Security Limited and Apex, who have since tried to bully us into repaying. We've had no notice of assignment for either card, and once we asked for CCA and complaints procedure from both DCAs they went silent.

The current account is still open with a zero balance. The idiot clerk at the TSB had filled in the form with just my name, and we were idiots for not noticing it.

We have got all the papers laid out on the bed and we're going to go to the local Trading Standards on Tuesday, then FOS then the OFT.

Additionally they've given us somebody else's account details (as above), so Trading Standards first, because this should be reported.

It should all be reported. We've tried repeatedly to give them the benefit of the doubt and each time they show themselves as feckless and witless. Enough is enough.

[photoman]

 

 

I really love this !!! :o

 

reading this, and how they apply charges is utterly shocking !

 

If one month, you were to inadvertently go over your overdraft limit by just £26, for just 10 days, then you would incur the following:

 

1/ A £15 one off "unplanned overdraft fee"

2/ A daily fee of £15 each of the 10 days.

 

TOTAL that month: £165 !!

 

For just over borrowing by £26,

 

Then, on top of that, you would also incur interest at unauthorised rates (probably around 29-30% APR) on the whole sum (ie; the £26 + the £165 in charges).

 

This would then also mean, that the following month, you would be left about £200 short..... so if unable to pay this, you would then incur another one off £15 monthly charge, plus another 10 days of charges, but this time at £20 per day.

 

So another £225 in charges, (again PLUS interest at 29-30% APR).

 

 

By my reckoning, if left for 12 months, this would potentially accumulate a total of around ........ wait for it..........

 

 

£2640 :o just in charges (not accounting for the Unauth. interest) !!

 

 

..... for borrowing £26 over your limit.

 

 

If my maths is correct , then this would be equivalent to

 

about 10,153.85 % interest on the original £26 !!!!!

 

....and even then, this does not account for the compounded monthly interest at an equivalent to 29-30 APR %.

 

So, it would actually be even higher !!