Thread: I owe RBS, do I get paid my charges….

I don’t know if any one has the answer to this. I have a loan with RBS but have just

started a claim for my bank charges. In the event that this claim is in my favour would I be

paid this money or it would go straight towards my loan even though they are 2 different

account numbers putting in mind that the account I am claiming against is not active

anymore. The account is not close but I don’t have access to it anymore. it's been lock by the bank Please advice

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Your loan has a completely separate agreement and won't be affected by your claim.

Unless you are in arrears with the loan, then there is no reason that the bank can offset the settlement against the loan.

Why is the bank account frozen? Is it overdrawn? If so, then any settlement would probably be offset against this.

Thanks for the swift response

I don’t know if I would say it’s in arrears or not but the situation was, I couldn’t meet up

with the actually agreed monthly payments. So I wrote them a letter through a third party

and got a smaller payment agreement with the bank. The new arrangement is up to date

and still on going as we speak.

The account was not overdrawn it was just frozen because I couldnt keep up with the loan payment and I arranged for reduced payment it was then passed to their debt management department in somewhere in Birmingham or Telford.

Hi everyone this my situation is a very awkward, have serched all the forum without any luck with any answer and I had to PM Bankfodder, then decide to start a thread on it.

Hi ,

Sorry If this thread is meant to be somewhere else on the forum..
First of all I will like to thank you for this site and helping people without courage to fight their bank against unfair bank charges.
Just wondering if you could advise me on this, I had a current account with Royal Bank of Scotland, took out a £19,000 (+ £5000 PPI) loan to consolidate my debt. The loan account is a different reference. Towards the end of 2004 I lost my job and couldn’t keep up with the loan payments. I turned to one of the debt management company who manage to negotiate for me to freeze the interest and reduce monthly payment £86 a month, have never missed any payment since.
About 6weeks ago I wrote to Royal Bank (debt management in Telford since my account is handle by that department now) to have the PPI on my loan taken off, to my surprise I got a call from a guy advising me they’ve agree to take the PPI off with has reduced my Loan by almost 5k.
Then I decide to try and see if I could claim bank charges on my current account. Request for my statement calculate all the charge and it came to a total of £1996.52. Wrote to Royal Bank in Telford again and got a letter from them saying my complaint to refund charges has been passed to customer relation as the request for bank charges refunds are dealt with by that department. The customer relation has written to me since then with the usually terms and condition crap that they would not be refunding the charges. They’ve also refuse to refund me with the second request (letter before Court action).

My next move now is money claim. But what I would like to know is in the light that I get a refund back are they going to pay me this money or put it towards my outstanding loan? I personally would have thought they should as this charges was taken illegally and it was when my account were still up and running and in good shape.

Please kindly advice me on this and if there is any template letter or legal argument I could slam the bank with, in the event that they want to pay the charges into my Loan :?

I think they might be using the "right of offset",I think it's called.IE,they are entitled to use the charges you reclaim to be offset against what you owe them,and reduce the balance accordingly.

I may be wrong,but I don't think you can do anything about it.

your dmp guys will expect you to use the money to pay off the debts anyways, so its either all to BOS or proportiantly between other creditors..... doesnt hurt to ask them (once they agree to settle) if you can have it as a cheque payment so you can distribute it yourself (then give BOS some so it doesnt put their noses out of joint (more than they will be anyway) and you can keep your frozen interest and repayment schedule. Which ever - its worth claiming it - even if BOS do offset it your loan will be paid off about 23 months earlier.

The claim is got nothing to do with my dmp. The refund I got back on the PPI I did on my own initiative. The dmp just update their own record with the letter RBS sent to me informing me about the PPI refund.

The DMP wouldnt have known that I got a refund back for the PPI if I didnt inform them.
Am not really sure if I can base the refund on my own terms .:?

This is just my opinion

The banks agreed to halt interest on your loan to benefit you. They agreed to the dmp. Now, for me, I cant see the arguement against the bank completely offsetting the amount from your loan.

Could the bank, upon paying you this money and you keeping it, not decide to right to the debt management people and say, WOW hang on, we have just hgiven him £XX.XX and he hasnt paid us back, thats not the spirit of this agreement, we want our money now and we will add interest.

Like I said, just my view