# Overdraft with TSB is due to end - They want their money back



## allthedoyles (2 Jul 2009)

We have a small € 500 overdraft a/c  with Permanent TSB. This is well under control , and we have a weekly DD of € 95 depositing weekly.( wages )

We receive letter today from Permanent TSB with the following :
'' The overdraft facility shown above is due to expire on 1st August 09. If you need a further overdraft , please contact me to discuss it . However if you no longer need this facility , simply ignore this letter ''.

We ring TSB , and they ask us to repay the € 500 at the rate of € 50 per month. After some arguing , we agree to pay it back at € 20 pm.

Permanent TSB are not interested in leaving us the overdraft for another year. They want their € 500 back.

This is a small managed account , and has never been in arrears , other than the limit of € 500 OD .

Is this a new policy from the banks , to re-coup some outstanding monies on their bank accounts ?

What should we do ?


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## d2x2 (3 Jul 2009)

allthedoyles said:


> What should we do ?



Pay it back. 

I don't understand the question. Is it that you don't have the money? That you can't afford 20 per month? What's the bargaining about?


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## demoivre (3 Jul 2009)

allthedoyles said:


> Permanent TSB are not interested in leaving us the overdraft for another year. They want their € 500 back.
> Is this a new policy from the banks , to re-coup some outstanding monies on their bank accounts ?
> 
> What should we do ?



Overdrafts are generally repayable on demand so technically they are within their rights to end the facility. Personally I'd talk to another bank about moving the account.


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## allthedoyles (3 Jul 2009)

d2x2 said:


> Pay it back.
> 
> I don't understand the question. Is it that you don't have the money? That you can't afford 20 per month? What's the bargaining about?


 
We would like to continue with the overdraft , but this does not appear to be an option . 

Of course , we can pay back € 20 per month , but you know overdrafts the way they work , and it would be just paid back , we would probably be looking for another overdraft of € 500 .

So the best option for us , would be to keep the overdraft going long term .

Of course the best option for Permanent TSB , would be to re-coup their € 500 now and then sell us another € 500 euro overdraft .

In other words , its going to be a win-win situation for the bank.


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## chlipps (3 Jul 2009)

did you at any stage over the past year exceed the €500 over draft?... If yes, then maybe they are concerned that you are unable to clear it?... Note that its in their T&C's to allow them recall overdraft. Did they explain why they wont give you another?


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## ericsson (3 Jul 2009)

that is mad. tell them you are going to leave them to go to another bank. in this day and age you would think they would be happy with their custom. i am with ulster bank and have a 600euro overdraft and have never had any bothers with them.


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## tootsie (3 Jul 2009)

I am a UB customer also, and have a €2,500 facility on my acc. Never any problems, and i'd hate to lose the OD facility out of the blue like that. Are you sure you didint give them any cause? I just find it so hard to believe they suddenly say no.

My acc for example, might go as far as 2k over drawn for a couple of months of the year, i do try to clear it asap though, otherwise your wages just get eaten alive by it. 

I'd move acc if i were you.


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## jhegarty (3 Jul 2009)

Most overdrafts need to be in credit for 30 days a year. 

Any condition like that in your policy ?


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## allthedoyles (3 Jul 2009)

chlipps said:


> did you at any stage over the past year exceed the €500 over draft?... If yes, then maybe they are concerned that you are unable to clear it?... Note that its in their T&C's to allow them recall overdraft. Did they explain why they wont give you another?


 
Will let you know when TSB come back with further explanation.

But this is a well managed account and never goes over the € 500 OD .

It has a DD with € 95 weekly been lodged . 

Jhegarty is probably spot-on ...........account may have not met the 30 day credit criteria .

This appears to us , to be the crux of thr problem ., as € 95 pw is not going to bring it back to credit .


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## chlipps (4 Jul 2009)

If Jhegarthy comment on 30 day credit is the reason then it is important that you challenge your spending where possible and try get back in credit...You mention that you have a well managed account but it is not good to have a negative balance in your account for more than 335 days of the year (365days - 30 days in credit)... you are paying a lot of interest and also an annual fee for the over draft facility

keep us posted on the bank explanation


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## allthedoyles (1 Aug 2009)

chlipps said:


> keep us posted on the bank explanation


 
No explanation from TSB .
 O/D was due to expire on 3rd August , and they removed it yesterday (31st Jul ) because 3rd Aug is a B/H.

On 6th July we wrote to TSB explaining that we wanted to continue with O/D , but we got no reply.

TSB have now frozen  €300 in lodgements ( last few days ) .

We rang the Bank this morning and they just say that the overdraft has been removed and call in tuesday to local branch if we want to discuss anything .

So to cut a long story short ...............PTSB are taking back their €500 overdraft forthwith.


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## lff12 (4 Aug 2009)

I am guessing you probably have another account elsewhere - if not open one now.
Move your 95 euro lodgement per week into the other account and pay what you can afford into the PTSB account until it is cleared in full, and put in writing to your bank what you are doing, on the grounds that since the overdraft is withdrawn you can only afford xx per week repayments.
Once the account is cleared, send a letter to them to close the account.

No point in giving your business to a bank that isn't offering you a service.

They will probably kick and scream and demand more but as long as you are making regular payments into the account they can't really do too much.


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## Bronte (5 Aug 2009)

allthedoyles said:


> Of course , we can pay back € 20 per month , but you know overdrafts the way they work , and it would be just paid back , we would probably be looking for another overdraft of € 500 .
> 
> So the best option for us , would be to keep the overdraft going long term .


 
Your overdraft is low.  Why have one at all, save some extra money and keep that on standby should you need more than your wages in any particular month.

Overdrafts are a lure to get people into debt.


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## allthedoyles (12 Aug 2009)

Received a reply from PTSB - They have freed up the € 300 that they froze earlier previously.- This well managed account has been granted €500 overdraft , but they are going to reduce the O/D by € 50 monthly.

This is what they said :
'' We are pleased to tell you that we have approved the overdraft of credit limit € 500.( interest rate 13 % variable )
The facility is subject to periodic review AND the above credit limit shall reduce by € 50 monthly at the end of each month.''

Not only that, but there is a renewal fee of € 20 AND a yearly overdraft review fee of €20.

So , as we said at the outset - they want their money back, and also would like to state once again , that this well managed account was never a problem , and all fees were always paid in accordance with conditions .

ps. they signed off by saying '' thank you for doing business with us ''


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