DRN-5826764

The complaint Mr P complains TSB Bank Plc (“TSB”) treated him unfairly when continuing to provide him with an overdraft facility. What happened Mr P held an overdraft account with TSB for many years. He told us that from December 2022 his financial position started to worsen and it’s from this point he wishes to complain about TSB’s conduct. The overdraft had a limit of £3,800 which was granted in September 2022, but there was an existing limit prior to this since around 2006. In 2025 Mr P complained to TSB. He previously had a professional representative acting on his behalf, but he wasn’t happy with how that went, so continued to act alone. He said the overdraft had extended his indebtedness longer than it should have been and it’s impacted his mental wellbeing. TSB responded to his complaint, via the professional representative who was active at the time. They said it was clear Mr P was struggling with the overdraft from 1 October 2023, and so they've offered to refund all interest and charges applied past that point. Mr P didn’t agree, so he referred his complaint to our Service. An Investigator here looked into things. They said, because there was a limit change in September 2022 – the date Mr P is complaining from – the first annual review would’ve taken place in September 2023 and TSB are upholding from that point, so there’s nothing further for them to direct. Mr P didn’t agree. It’s not entirely clear why he remains unhappy with the opinion but in summary, he disputes where the money came from to repay the outstanding balance and said he felt the Service were supposed to work on behalf of customers, and disputed that TSB offered him a repayment plan. Because an agreement couldn’t be reached, the complaint has been passed to me to decide. What I’ve decided – and why I’ve considered all the available evidence and arguments to decide what’s fair and reasonable in the circumstances of this complaint. Because I wasn’t clear why Mr P was unhappy with the view or which point he wants to complain from, the Investigator went back on more than one occasion asking him to clarify, but because no response was received, I’ve taken what he said in his initial complaint form that he’s unhappy about the overdraft from September 2022 onwards. Having done so, I’m in agreement with what the Investigator has said and the actions TSB have already taken. Mr P complains he started to struggle financially in September 2022. Firms have an ongoing obligation to monitor overdrafts and make sure the overdraft is still suitable for their customers. They can do this by completing reviews – usually annually. Mr P complained in 2025 and TSB agreed that they could’ve done more for him at the time, so offered to refund interest, fees and charges from October 2023 onwards. If Mr P only started struggling in September 2022, this is in line with when we’d generally say they ought

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to have taken action to support him – a year from when his difficulties began. The refund TSB have offered is in line with what our service would usually offer in circumstances such as this and I’ve not seen anything that persuades me they ought to have stepped in sooner or paid further compensation to Mr P. Mr P has raised some complaints that TSB didn’t offer him forbearance when he reached out for help, but I can see TSB have offered repayment plans and sent him income and expenditure assessments to complete and return, so again, I can’t say they’ve treated him unfairly here. As of May 2025 the overdraft was repaid in full. In reaching my conclusions, I’ve also considered whether the lending relationship between Mr P and TSB might have been unfair to Mr P under s140A of the Consumer Credit Act 1974 (“CCA”). However, for the reasons I’ve already explained, I’m satisfied that TSB did not lend irresponsibly when continuing to provide Mr P with the overdraft between September 2022 and October 2023, and that what TSB has offered to do for Mr P results in fair compensation given the overall circumstances of the complaint. And I haven’t seen anything to suggest that s140A CCA would, given the facts of this complaint, lead to a different outcome here. So while it’ll likely come as a disappointment to Mr P, I won’t be upholding his complaint against TSB for the reasons explained above. My final decision It’s my final decision that I do not uphold this complaint against TSB Bank plc. Under the rules of the Financial Ombudsman Service, I’m required to ask Mr P to accept or reject my decision before 25 May 2026. Meg Raymond Ombudsman

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