I first logged here a while ago - meantime I've been mugging-up on son's 'bank account' with RBS. It's an absolute joke imo.

Son ran ok for 1-2 years with ordinary a/c, then began to use it for DD's. RBS 'advised' a Royalties a/c and son agreed. He had 3 dd's - his monthly salary well able to pay all of them. Simple eh?

No. RBS never (or very quietly and/or in very small print) mentioned the Royalty a/c £34 (is it?) plus interest monthly charge, which, it seems always needed paying just in time to render the a/c into red! Thus allowing bank to charge £38 (is it??) when the next dd couldn't be paid! Then they slapped an 'interest' charge on too.

Son, (then 19 and by no means fully 'used' to banks and their methods) began to panic when great slabs of his salary (£138) in one month!!! Yes, I have the statement!) disappeared from his a/c as 'charges'. Because of this 1 of his dd agreements defaulted - total payable nearly £1,000 - and as last resort he asked me for help.

Immediately I told son to pay his salary into my a/c and, with his signature on the letters, wrote to two other creditors to set-up new dd's from my a/c. No problem. The other dd's did actually default but payments were made to bring them fully up to date from my a/c.

The main problem is a personal loan from RBS (hugely expensive) which carries interest charges @ over 7% and, as far as I understand it, must be paid through a Royalties a/c that carries a £34 or is it £38 monthly fee! plus irregular interest payments and of course punitive penalties for any defaults!!! Since Dec. last son has been charged between £500 & £1,000 ( I don't have all statements) on this a/c. His loan was for £7,000 and the RBS debt collection section are now claiming £16,000 because of the payment default - son had no choice - he could not use his RBS a/c.

I have sent (after first visiting this site) a preliminary letter re: refund of charges to RBS, but now that a) son's salary is safe!?! b) other dd's are fully paid-up and c)son has enough £ to get to work each day!!!, I can fully get to grips, on his behalf, with getting his charges back! And, I will.

Many thanks B.A.G.

Sorry for long post, but it may help others.

No problem.

Keep us all informed.

Banks have had it all their own way - just look at the way his bank took advantage of a somewhat naive teenager, not used to their fleecing ways. I don't mean that in a bad way to your son, I had the same thing with credit card companies - I was 'advised' by Barclays that to build my credit score (I was attempting to my first mortgage at the time), I should take a Barclaycard with them.

I did, and now, very shortly I shall be suing them too.

The first few months they phoned to see if it was 'going OK', and "while I'm on the phone, do you want to make a payment.", so I did, every month like this for about 5 months. Then the calls stopped and so did the payments - I foolishly and naively assumed that this was how credit cards were paid - they phoned you each month and you gave them a debit card number.

Stupid, I know, but I was 19 and didn't know any better. Of course, that's when the charges started!

Banks prey on the naive and financially downtrodden - now it's time for revolt - and I think we're just at the beginning of an avalanche.

skint, the monthly fee for royalties is only £6. It's £28 for being overdrawn past your limit during the month which makes a total of £34.

Have a read of my two new threads "the great royalties rip off" and "referal charges / maintenance charges read here (RBS)" i think that may help get your head round the situation.

The charges are illegal (not the royalties ones though) so stick with the advice from Dave and the rest of the site and go claim your sons charges back!

Hope that helps ya

any particular other questions just post and i'll lhelp all i can

Thanks for comments.

Just for interest here's one very suspect statement...

3rd oct 2005 interest paid in 00.02p balance £80.85p

card (out) 70.00p (4th Oct)

cashline (out) 10.00p balance 00.85p (6th Oct)

referral charge (Sept)??? 60.00 (10th Oct)

interest (to end oct)??? 3.34 (19th Oct)

CHG (to end oct)??? 34.00 (19th Oct)

CHG unpaid item 38.00 (2nd Nov)

(Balance at this date now £134.49 overdrawn?????????????!!!!!!!!!!!!!)

This is a sample monthly statement. At no time does my son go overdrawn! And where the hell is his salary??? Paid on last Wednesday of every month???!!!!!

Look guys, I think this is a job for the bloody Police! Not just a small-claim!!!

Fellow father

I know exactly what you are going through. I have had to bail my kids out regularly for the last few years and I could never understand why they never had any money as they all had reasnoble jobs and very little in the way of expenses.

I have interrogated all four of them and after initially being a bit embarrassed by their lack of financial management they all confessed.

I now have 8 claims on the go on their behalf. I got the first set of statements from Woolwich yesterday and sent them a letter requesting over 1000 GBP refund. He never went over his overdraft by more than 50 quid in 5 years. Good work if you can get it.

To be honest it is a huge weight lifted of their shoulders as they can eventually see a light at the end of the tunnel. Words cant describe how angry I am at this exploitation and if there was an alternative to using a bank I would.

Keep at it and you never know they may pay you back with the refunds

Rog

Thanks roger,

I'm at present trying to trace the salary payment that should appear on the sample above. Son's firm confirm by phone that the wage paid on 26th Oct 2005 was £919.35p net. - salary for Oct. 2005.

??????????????!!!!!!!!!!!!!!!!!!!!!!!!

In nov 2005 another £72 went onto 'overdraft' as charges - wage went in and, (very wisely imo!) son immediately withdrew £400 + in order to ensure that he could live & get back to work the month after!!! From this wage input RBS took the £200+ charges! leaving son again £37+ in overdraft!!! - and missing a full months salary??!??

Can this happen?

2nd letter ready for posting. There's another thread here that deals with interest on the unlawful charges - thanks for that - I will bear 'interest' in mind!

On some statements from RBS I find that charges are levied before a wage-payment goes in?? This may or may not be 'legal' - but it reeks of profiteering eh?

E.g. on one statement a cheque is unpaid and charged @ £30 - the day after a month's salary goes into the account! Not good business eh?

As self-employed I've had to use small-claims court to obtain bill payment a couple of times. It's nothing to worry about. The Court, you'll find, is on your side when you file for a claim or ruling. They are there to help you - and they do. I'll send a few more letters yet, then will, on my son's behalf, go to small-claims court if needed.

I hope this post helps others - your posts have been a great help here - thanks!

Skint

(Actually Dave)

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