Hey all, newbie here, compelled to join and try and get help/advice as I'd had the site bookmarked for some time, it was here I got the contact details for RBS credit management, so first of all, a big thank you to CAG for that!

And to the aforementioned credit management... contacted them today in order to get an update on the loan I've been repaying with them for the past few years, I've been receiving monthly letters from them regarding charging interest to an account they closed back in Feb 07, and I've thought nothing of it. I'm paying back what they're owed, and the account I keep receiving the letters for is defunct, closed, finished, no longer in use. So I thought.

The repayments I'm making were arranged through the CAB 2 years ago, as I'd got into a lot of difficulty back then with an RBS loan, overdraft and several credit cards. The CAB helped me get back on my feet and get me some breathing space wrt my creditors. Done the income/expenditure stuff, and drew up a payment plan with all my creditors, which was agreed upon by all, and so I thought things would crack on from there. Whilst I was making these arrangements, RBS closed my current account, which was overdrawn to the tune of some £500-£600. (Overdraft limit at the time was £1200).

RBS got in touch with me through the CAB and gave me instructions for repayment of my debt to them, under the arrangement made via CAB. These instructions came in the guise of a standing order form, which had a different account number to my current account they'd closed down just recently, but I thought nothing of it, and have been making regular monthly payments to the account provided since, with no defaults.

So today I phoned RBS to find out an approximate balance left on what I owe them, since they've never sent me an update to let me know how I'm getting on, I've just been paying blindly hoping the balance is coming down substantially with each month. I enquired with the girl on the phone about the letters I've been receiving each month stating the charges (maintenance fee, service charge and overdraft interest) and asked what this was for, as I was under the impression my debt had been rolled into one lump sum, and I was paying this off, why was the interest not coming down month by month?

I told the girl about the different account number RBS supplied me in order to repay my debt, and I was informed that I've been making regular payments towards the loan, which was a set amount, no extra interest applied, and no extra charges, and this indeed was coming down, but the overdraft was kept as a seperate account (which RBS had never at any point informed me of) which was where the extra charges were being incurred.

My overdraft now stands at £1968.40 with interest and charges being piled on each month for the last 2 years. And I thought I was paying this all off?

Sorry for the long winded post, but surely to God they can't get away with this? If I had been told at the start of the arrangement that the overdraft was being kept as a seperate entity, which would accrue interest and further charges (charges on an account THEY closed!) then despite the fact I was drugged up to the eyeballs with anti-depressants at the time, I'd have had the common sense to pay up the overdraft first, before taking chunks out the loan. Is there any way I can have these charges refunded/expunged as the way it's going, it'll probably add another 6-7 months to a repayment schedule that quite simply does not allow me to have any sort of life whatsoever.

The fact is, I've never wanted to take out any form of insolvency to cut the debt, I resolved to pay every penny I owed my creditors. I've worked 2 jobs for the past 3 and a half years to this end, I just now feel like RBS have been robbing me blind over the past 2 years, and taking advantage of my naivety and willingness to pay them back, at cost to my own health and sanity to be honest.

I really do want to send them a letter telling them where to shove their repayments, but truth be told, I quite fancy being able to buy my own house before I turn 50, so I doubt I'll ever follow that path. My other creditors were great, allowed me on my feet, and I've been able to settle with them one by one, paying everything I owed, RBS just seem to want more and more, and after today's bombshell, I just feel like I've taken a step back a couple of years.

Completely and utterly raging,

Glasgow.

And if anyone managed to read all that, thank you and can anyone help?

I suggest you make a SAR and CCA setion 77 request to find out what they've been up to with your accounts.

Paul

Hi,

You say your OD account was closed. The account that is accruing these charges & interest, is it the same account or a new one.

Debs

Hi,

You say your OD account was closed. The account that is accruing these charges & interest, is it the same account or a new one.

 

Debs

Hi Debs,

The account they closed is the one that charges are being applied to.

It was RBS who told me to make payment into another account, one that wouldn't be running up any charges as it is a fixed sum.

The more I think about it, the angrier I get. Couldn't sleep last night, and to be honest I just don't have the energy for a fight, but believe me, a fight is what the RBS are going to get.

I'm thinking my first line of attack will be to phone and tell them I'll pay off the loan as per the original arrangement, but I'm absolutely not paying the overdraft under any circumstances due to these phony charges they've applied to it after the account was closed. Had I known that would have been the case, I'd have settled the OD balance within 2 months of the account's closure.

Like I said in the OP though, I'm bloody tempted to tell them they won't see a penny from me at all from now on unless the OD balance is dropped entirely.

Hi Debs,

 

The account they closed is the one that charges are being applied to.

 

It was RBS who told me to make payment into another account, one that wouldn't be running up any charges as it is a fixed sum.

 

The more I think about it, the angrier I get. Couldn't sleep last night, and to be honest I just don't have the energy for a fight, but believe me, a fight is what the RBS are going to get.

 

I'm thinking my first line of attack will be to phone and tell them I'll pay off the loan as per the original arrangement, but I'm absolutely not paying the overdraft under any circumstances due to these phony charges they've applied to it after the account was closed. Had I known that would have been the case, I'd have settled the OD balance within 2 months of the account's closure.

 

Like I said in the OP though, I'm bloody tempted to tell them they won't see a penny from me at all from now on unless the OD balance is dropped entirely.

It's plain and obvious that RBS have appropriated your payments in a manner that is more beneficial to the bank...this is common at CMS Telford. You need to make a full SAR before deciding on your cause of action.

which had a different account number to my current account they'd closed down

Do your SAR, include all your origonal account numbers, & also the "NEW" account number. You need to establish what type of account this is.

As this hasn't gone to court, I think you should also do CCA requests on the Loan account & the credit cards. You need to see the origonal T&C's.

Do not speak to them on the phone.Everything must be done in writing & sent recorded post.

Debs

Is it possible to claim charges back on this once you have your SAR in hand? If so, that's the overdraft paid and a nice chunk off the loan.

I have no idea about charges on overdrafts as I've only ever looked at it for cc's, but someone here will know if it's a goer or not!

Charges on overdrafts are deemed unlawful by the OFT. Once you have all the statements, go for it.

As for the Loan account, do the CCA request. See what comes back. No agreement, the debt cannot be enforced in court if you stop paying.

Debs