Changes to our personal loan terms and conditions

We’re making some changes to our personal loan terms and conditions. If you have other loans or a credit card with us you may recall that we made some changes to those last year. Just like these other changes, the changes to our personal loan terms and conditions are largely to bring them up to date and make sure they align with new laws and practice. We’ve also made some changes to your and our rights and obligations which we describe below.  

These changes to our personal loan terms and conditions will apply to your personal loan from 28 July 2022. 

What does this mean for you    

These changes to our personal loan terms and conditions don’t affect the frequency or amounts of any regular payments you’re required to make, the interest rate on your loan, how interest on your loan is calculated or the amount of your loan.  

There’s a couple of things we think you should know:

• We’ve included more key information about your rights and obligations in the personal loan terms and conditions.
• We’re pleased to have achieved the Writemark Plain Language Standard for these terms and conditions.   This is one way we’re committed to putting our customers first. 
• The new personal loan terms and conditions only relate to personal loans. This is different to your existing terms which, in the past, applied to other types of loans from TSB — for example, home loans.  We think having a specific set of terms for personal loans will make it easier because you’ll know that all the terms will be relevant. 

Some of the changes do affect your rights. We’ve also added in a new term that where we do anything in relation to your personal loan terms and conditions, we will act fairly and reasonably. We’ll consider the circumstances, as well as our obligations as a responsible lender. 

What’s changing

Here’s an overview of the changes we think are important. 

• We’re updating the ways we can contact you and provide you information, and the ways you can contact us, about your personal loan. We’re allowing more forms of communication (like email or text message) to be used, and we’re removing fax as an option. If you don’t have an email address, don’t worry — we’ll still send you communications by post. Let us know if you would prefer that we sent you things by post otherwise we will decide whether to send things to an email address you have provided or by post.  
• We have updated the circumstances that will be a breach of your personal loan. We think, overall, these changes are fairer to you. Please make sure you look over this as these terms are very important.
• We’ve also updated the description of the circumstances where we have the right to ask you to repay one type of loan with us when you breach a different type of loan. Importantly, if you breach your personal loan this will no longer be a breach of any other loan you have with us, including any home loan. However, if you breach your home loan, this will still be a breach of your personal loan. 
• We have made a change so that when a personal loan has more than one borrower, each borrower authorises any borrower to agree changes to the personal loan contract on their behalf. It’s important everyone understands how decisions can be made in relation to your loan, and we think this will make it easier to manage your loan. If your loan has multiple borrowers, you should always make sure you get the agreement of all borrowers before making any changes to your personal loan contract.

General information about your personal loan

• Your personal loan is not secured. This means you have not given us ‘security’ (for example a mortgage over land) in relation to your personal loan. It also means that if you have given us security in relation to other loans (like a home loan), we will not recover amounts you owe us in relation to your personal loan contract under that security. This is the case even if that other security is referred to as being ‘all obligations’ security.
• Currently the only fee that applies to personal loans is an establishment fee. There are no restrictions on your ability to repay your personal loan or increase the amount of your payments (and no fees apply if you choose to do this).
• If you’d like further information about your loan – including an updated summary of your loan, please just let us know.