TSB issues


(Rob) #1

I decided to give my TSB credit card the heave ho, the amount of issues I can’t dealing with them any more.

So I opened a new credit card with virgin money (0% on balance transfers and 0% interest for 30 months… Why thankyou Richard…)

Transfered my entirely balance over. Didn’t cancel the cards as no fees and leaving it open gives me more credit and makes my credit score better.

What I didn’t realise is at the same time the balance transfer was processed, my normal £150 direct debit was also already processing.

So now I have a credit card where its paid off in full PLUS an extra £150…over paid in other words.

I contacted TSB to see about getting it refunded only to be told “oh we don’t do that, we’ll just take it off your next direct debit”…

Sorry… Off my next direct debit… Of £0?

Apparently they’ll just let me spend it. I don’t want to spend it. I want it back.

Is that even legal? After all it’s my money. They have no legitimate reason to keep it.


(Simon B) #2

I guess you could always buy something with the money and sell it? :grinning:

Not sure why they can’t just refund it though :thinking:


(Sacha) #3

Just withdraw it from a cash machine and pay it into a (legacy) bank.


#4

They can refund it, I did the exact same thing with hsbc and they refunded no problem. TSB are either choosing not to refund you or their systems are … well TSB


(Rob) #5

Problem there is they charge interest for cash withdrawals. So based on that I’d have to pay them for the privilege of getting my own money back!
Their website is very unhelpful as to what the interest is as well. The terms they provide state the interest is:
Monthly: 1.456%, 1.736% or 1.941%
Annual: 18.94%, 22.94% or 25.95%

Or in simple terms: “Some” Interest…

I have sent them a message advising that if they are unwilling to refund I will simply take my case to the Financial Ombudsman Service.
I have also pointed out that as someone who works in the finance industry and regularly deals with customer complaints and by extension also deals with the FOS this will likely not end well for them - I know how the FOS work and I know how to win a complaint :grin:


(Kevyn) #6

Maybe try the Direct Debit Guarantee?

If an error is made in the payment of your Direct Debit, by the organisation or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society.


(Andre Borie) #7

Not sure why they can’t just refund it though

Because legacy. I had the same issue with Capital One.

You can use the Direct Debit guarantee to get your money back (quick in-app chat with Monzo was sufficient in my case). TSB might however charge you a “bounced” direct debit fee, and may have to fight with them to get that refunded.

While I agree with you in principle that you want to simply claim back your money, it would probably be easier to just withdraw it than fighting to get the declined direct debit fee refunded, especially because at the moment TSB’s customer service is overloaded and many people are experiencing hours-long hold times on the phone.


#8

That really surprises me! Most credit card providers are extremely allergic to you building up a positive balance with them, and will refund it quite quickly. I’ve heard of occasions where it was grounds for account closure.

Well, you can probably take them to court, and would have a reasonable chance of winning. But is it worth it?

My 2 cents: I know it sucks, but in reality the quickest and easiert way to “get your money back” is simply to spend another £150 on the card.

If you want to fight this: file a formal complaint. That alone might be enough, but may take some time - especially given the current issues they are having. You can only go to the ombudsman once you have finished TSB’s complaint procedure.


#9

Have you thought of a Direct Debit Indemnity?


(Colin Robinson) #10

Not looking too good for them - TSB investigated over IT meltdown


(Andre Borie) #11

The FCA has powers to impose unlimited fines.

I say fine these idiots out of existence. :smiling_imp: The world would be a better place without such incompetence.


#12

I’d agree, but then the FSCS would have to compensate savers. And at least some of that money would likely come through my taxes :frowning:


(Andre Borie) #13

Use the money from the fine to compensate them?


#14

Wouldn’t you declare bankruptcy before paying your fine, if you receive a fine that bankrupts you?


(Andre Borie) #15

Well I mean the FCA takes the money from the fine, and then somehow funnels part of it into FSCS which will use it for compensations?


#16

What i mean is this:

I receive a fine that “fines me out of existence”. The logical consequence is that I need to start bankruptcy proceedings. At that moment the government becomes a creditor that needs to queue with the other creditors to get their share. In a few years time - when bankruptcy proceedings are finished - each creditor gets maybe 5p for the £1 of their debt.

Consequently, the FCA essentially doesn’t get their fine, and thus there is no money to pass on to the FSCS.

Although it is of course entirely possible that I misunderstand bankruptcy proceedings - I am merely a developer, not an economist - so please correct me if I’m wrong.


(Jamie 🏳️‍🌈) #17

Don’t withdraw cash from your credit card at an ATM; other lenders can view cash advances as evidence you’re not managing money particularly well. In other words, it can negatively impact your credit file.

Why not just spend another £150 on the card? It’s the cheapest and easiest way to run that balance down. Spend just over, and set your direct debit to collect the full balance next month, and you’ll be reset to a zero balance.


(Jack) #18

When I had a positive balance on my Lloyds credit card that I was no longer using it was transferred to me me using FPS. This was part of the process to close my account. Although after I received that I had a delayed payment show up so they contacted me to pay it off.

If TSB are relling having so many issues you may be better off just closing it :grimacing:


#19

Just ask them to refund the money. If they say no, ask why. Take notes of what they say and then formalise it, so complaints etc. I’m sure they’ll refund it when you say you want to complain. Another thing to remember is a lot of companies have varying responses depending on who you speak to, so worth trying again.


#20

Dear TSB,

Further to my communication on //2018 regarding your refusal to return the direct debit paid in error, I wish to inform you of the fees for TSB obtaining credit from myself.
(Copy CC t&c’s changing it so you are the provider and make sure a nice large APR is included)
If you do not wish to proceed with this credit agreement please return all funds within 14 days.

Yours sincerely yada yada

And send it registered delivery