Sorry for the long post but here is My Story

After a bad divorce and period of mental aberration I found myself with my house reposessed (hallifax - another story) and several thousand pounds in debt.

I was still working fortunately but my wages didnt quite cover my outgoings and so I was slipping further and further in.

In 2004 ish I consolidated (yet again) with the RBS into a loan of 25000

Still slipping further and further down - got made redundant which didnt help (and the ppi of the loan wouldnt pay out)

got another job but still not earning quite enough...

got behind on payments from the loan.

A good friend of mine offered to help and we actually went into branch and he offered to make some payments on the account - they refused saying that they couldnt accept any payments other than to bring it fully up to date - without putting it into default.

They defaulted and I reached a payment agreement with them which I maintained.

At this time I calculated with the default mortgage, credit cards and this loan I was close on £75000 in debt.

somewhere in this morass a bright light - I married a wonderful woman

When bank charges first hit the headlines I reclaimed 3500 off them in charges which went straight into the loan account to catch up arrears.

Today the outstanding balance on my loan is just over 18k. I sent the agreement off to a company to get it checked for legality and they said that it was not valid - so I wrote to the bank.

My letter went something like this

Dear RBS

regarding this loan

I have had the agreement scrutinsed by an expert in this field and he has advised that it is in breach of several key sections of the consumer credit act. Not least of section 127(3) and as such would be unenforceable by the courts.

I have also been informed that in all liklihood the Payment Protection Insurance attached to the loan has been mis-sold and not only would I be entitled to claim back all payments made (plus interest) but as you did not declare the commission you earned on this policy - I would be entitled to have that paid to me too.

A leading solicitor has offered me a Conditional Fee Aggreement deal in order to pursue this, in which he estimates that if we are successful he would expect to recover my damages, plus between 10 and 25 thousand pounds in costs.

However. As the business In which I am involved still banks with you, I am willing, as a gesture of good will, not to pursue this course as long as we can reach an amicable agreement between ourselves.

With this in mind I am making you an offer, in full and final settlement of the loan, of £1.

Should you not be willing to accept this offer I will have no choice but to instruct my solicitors.

Yours.....

Initially I heard nothing - then my wife (joint account on the loan) started getting threatening letters which they didnt copy me in on (normally a duplicate letter goes to both)

I sent a letter to them saying this was not acceptable and was clearly harassment of the person considered to be more likely to be bullied. (they obviously dont know my wife)

Their head of customer services wrote to say that after a full and thorough investigation she had determined that there was no ppi on the loan and so she could not comment on that complaint.

I wrote back saying that as I was holding a copy of the agreement in my hand - complete with 6590 premium listed - my confidence in her thorough investigation was not very high.

We have had the - we are looking into this - please have a leaflet letter and are awaiting the next move from the bank......

watch this space.

Ah the caring, thorough RBS. My favourite bank

Best of luck.

Hmm, sounds as if Mrs Flyingdoc has a similar temperament to Mrs Goldlady - after I stopped lying on the floor when anyone knocked at the door having discovered CAG and my rights.

I wish them luck - as they will need it more than you and Mrs Flyingdoc:eek: