TSB will not pay loan in to Monzo account

applied for loan with TSB but they wont pay the money in to a MONZO account - I even went in to the branch but they still would not accept it.

I have written to complaint.info@financial-ombudsman.org,uk to say that this is bias towards challenger banks and stifling competition as it basically saying I either have to open a TSB account or use a different bank account. I refused to open an account and cancelled the loan. Monzo is my only account and no other bank has ever refused to recognise it - it has effected my attempts to go elsewhere as my credit score has been effected by this application.
I will pursue my complaint until TSB explain why they will not recognise Monzo which is a fully licensed UK Bank


I’d definitely be asking TSB to have the application removed from your credit history.


It does seem to say on the website that ‘To apply for a loan between £25,000 - £50,000 you need to hold a TSB current account, and meet our eligibility criteria.’ Which I agree is stupid but I don’t know the legality of it. :man_shrugging:

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Looking at https://www.tsb.co.uk/personal-loans/guides/personal-loans-faqs/ in the Overview section, it states:

To apply for a loan between £35,000 - £50,000 you need to hold a TSB current account.

So, a different minimum to what you stated (it could say different elsewhere, wouldn’t surprise me with TSB!). I’m assuming the OP is aiming for a loan of less than the minimum in which case it certainly seems very odd that they’re insisting on an account, but if it’s in this higher range I guess it’s within the terms of the loan?

What was the objection to having a TSB account opened?

Seems quite a simple hurdle to overcome if it’s make or break getting a loan.

Was it just Monzo they objected to, or any non-TSB bank account?

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Banks are entitled to insist on their own linked current account for a loan - both to receive the funds and to take repayments from.

It’s quite common - TSB certainty aren’t alone in this.


Metro Bank require you to have an account with them if you want a loan too. You have to pay the loan into the Metro Bank account and the DD has to come from it

I’m curious @Investor_No1 did they say they won’t pay it into Monzo or that they’ll only pay it into TSB account?

May I ask why? Presumably if you had asked for a loan and been through the process you’d also agreed to their terms and at least pretended to read them :blush:. That last line is genuinely meant to be a little tongue in cheek as no one actually reads terms and conditions

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If they were allowing you to pay into all other bank accounts, apart from Monzo, then I’d fully understand why you’d have grounds for a complaint. However, if it’s clearly stated that you need a TSB account for a TSB loan, then they are perfectly within their rights. You can always then transfer the money to your Monzo.

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HSBC are the same. When I asked them about opening a joint account they said they would have to close my main account which would mean paying off my loan in full. Needless to say I just went elsewhere.


TSB systems won’t recognise Monzo sort and account number as a valid UK bank account to have loans paid in to.

They even tried to overide it while I was in the branch - although they made me wait 1 hour before trying to do this - I would never open an account with TSB after my experience with them today.

I lodged a complaint with their complaints department and emailed the ombudsman the lady on the phone at TSB complaints was very nice and said they should have accepted the account details as it’s a valid UK bank account or at least they should have called the lending team - which they say they did - but out the back of the branch for some reason not in front of me in the meeting room - they really did not have a clue what to do.

I am sure they are but this was not a condition of the loan and the complaints department even tried to reopen the application but unfortunately the branch cancelled my application completely

The complaints lady on the phone has requested that the search is removed from my credit file but this will take months and I have already been declined elsewhere today probably due to them thinking I have just taken a loan with TSB

Wish I had never applied with TSB

That sounds like an absolutely appalling experience. I’m so sorry for you.

The first two digits of any sort code indicate the bank (e.g. 60 is NatWest). It sounds like maybe their system is so old it didn’t think it was a real sort code?


So TSB - a bank - hasn’t bothered to update their systems with the up-to-date sort code list which would include Monzo’s sort code. Considering the sort code came into existence two (or thereabouts) years ago now, this is astonishing.

And now your attempts to gain credit are hampered by this lunacy. Isn’t it amazing that they are so quick to add to a credit file, but getting anything off it is an uphill struggle.

TSB are a joke.


Can’t help but wonder if the easiest solution here wasn’t to allow TSB to credit one of their accounts (and then transfer out) while running a complaint at the same time. Do you only bank with Monzo?

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Yep, First Direct do this as well. I don’t see what the issue is apart from the OP’s reticence or stubbornness in opening an account with TSB.


The OP has made it clear that in this instance it was specifically the Monzo account details that were the issue, rather than TSBs T&Cs as TSB tried to pay into the Monzo account but failed:


My tsb mortgage has a linked current account to it, but they’ve never insisted I open it

1.the loan t&cs did not require a tsb account
2. The complaints lady apologised and even tried to correct the error but the branch had closed the application
3. Their systems have not been updated to recognise Monzo’s sort code and account number