Hi

I have (had) an RBS credit card for a number of years and about a year ago my circumstances changed so I went through the routine of contacting all my creditors. Nearly all of them have frozen interest or reduced it significantly and I am on reduced payment that suits me.

About 6 month ago RBS accepted my reduced payment of £200 per month but refused to reduce interest, the problem is the interest is slightly more than the payment, so for the past 6 month I have paid them £1200 but my balance has increased!

Ive just recieved a letter from them telling me that they have reviewed my account and will continue with the reduced payment but no reduction in interest.

At this rate I may as well chuck £200 down the bog each month. Any idea what I should do

Have you checked how much you have paid them in credit card charges? If you consider late payment charges and interest paid on those charges, you may well find that your level of debt to them falls significantly

Have you checked how much you have paid them in credit card charges? If you consider late payment charges and interest paid on those charges, you may well find that your level of debt to them falls significantly

Hi

I haven’t checked. I am guessing that there may well be maybe only a dozen or so late payment charges over the years, particularly during that year when I got into difficulties when pretty much every month I was slapped with £12 penalty.

I would suggest that you prepare an income/expenditure schedule. If you have already supplied them with one, then bring it up to date and send it to them. Remind them that they now have a statutory duty to treat their customers fairly and that they are not doing so and that if they will not reduce the interest, then they are putting you into a position where you are merely providing an infinite revenue stream for them and that you will never get your affairs in order.

Tell them that if they will not respect their statutory obligations to treat you fairly, that you will make a formal complaint to the Ombudsman.

Give them 7 days to respond.

After that, begin the formal complaints process. Don't give them any more time. They can always bottle it at some point and you can withdraw the complaint.

Be prepared for a long haul on the complaint because the FOS is not very enthusiastic about getting complaints sorted - or about getting them sorted in a very enthusiastic way. But for the moment, this is probably the best way to go.

If you make the FOS complaint then ask for the reduced interest payments to be backdated.

Sorry for the lack of updates (and I do appreciate the response/advice)

RBS went on the back of the ‘things to do’ because of other eager creditors!

I have continued to shovel £200 every month to RBS and to date I have paid over the last twelve months a staggering £2600. My balance owed to them (us) has reduced by only £45!!!

I may as well tell them to shove their kind repayment plan without reduced interest up Stephen Hester’s arse and default

Ive sent them my income/expend sheet, Ive told them how I came about into difficulties due to an accident and Ive even told them what my creditors have done in relation to freezing/reducing interest – all of them have!

Except RBS

Tonight I have printed off another letter to them pretty much covering BankFodders advice and telling them that it will take until 2042 to pay off.

Lets see

Hi

Just resurrecting an old-ish thread that I am still struggling to resolve.

I’ve wrote to RBS yet again trying to explain that they have agreed reduced payment of £200 PCM but their interest is just short of this and on several occasions have exceeded this. Since this arrangement has been in place I have paid £3,200 to them but my balance has only reduced by £67!!

I cannot afford a penny more than what I pay but cannot continue with this, it’s just ridiculous.

Add to this I send them a SAR, recorded last month but in good old Royal Mail fashion, it’s still being delivered.

Any idea what I can do next?

Here is their latest reply;

Dear

Thank you for being so patient while l've been reviewing your complaint and I apologise for the delay in my response.

Following my review, I am sorry l'm unable to agree with your complaint about your interest not being reduced after you have advised us of the accident resulting in your current situation.

From our records I can see that you wrote to us on the 14 January 2012 [2011] advising that you were in a road traffic accident, which resulted in you being signed off work for two months you stated in your letter dated the 14 January 2012 [2011] that your have been receiving a reduced salary. lt was advised in your letter that your wife*********** and was in hospital due to a *************

ln your letter dated the 26 February 2012 [2011] you offered to make payments of £200 a month back to your credit card account. At this time you were aware of your credit card account being issued with a Default Notice and a Termination Notice.

A letter was received from yourself on the 14 March 2012 advising that you had been making reduced payments of £200 per month. You state that you had a balance of ***** in February 2O11 and despite paying off a total of £2,600 your balance was still ***** reducing your balance by £45.

On the 25 April 2012 you wrote to us in response to the letter we sent you on the 2l March 2012. In the letter dated the 25 April 2012 you stated that you were disappointed that we can not reduce the interest which is being applied to your account. Unfortunately as advised in our previous letter unless there are exceptional circumstance interest will not be ceased to be applied.

ln the letter we sent on the 27 March 2012 we enclosed a Financial Statement. This was sent to establish the full extent of your financial situation. Unfortunately we have not received a copy of your financial statement and without this we can not consider reducing your interest.[I did send this]

I note that you disagree that in our letter dated the 27 March 2012 we state that you are in excess of your monthly interest charge. I would like to explain the meaning of this. You are set up on a repayment plan for £200, which you advised you could afford to pay, in your letter dated the 26February 2012. Your monthly interest each month is below the £200 which you state you could afford; therefore your payment is in excess of your monthly interest charge. I apologise for any inconvenience caused and I understand your personal circumstances.

Having looked through the break down of your finances it has been established that you are able to pay a higher payment back to your account which would reduce your balance and lower your interest.[really ..!]

ln your letter dated that 25 April 2012 your state that the interest which was being applied to your credit card exceeded your £200 repayment plan, this was because you made a payment of £180 in the month of June 2011 which broke the Terms and Conditions of the agreed repayment plan and although I can see that your made a payment of f22O in July 2011, unfortunately when set on a planyou can pay above the agreed repayment plan but not below as it registers as a insufficient payment.

While I am unable to agree with your request for the interest to be reduced, as a gesture of goodwill based on the length of time your complaint has gone unanswered by us; I have credited your credit card account with £50. Please be aware that this is a credit to your account and not a payment, therefore you will need to continue with your payments of £200 a month.

I believe l've resolved your complaint satisfactorily following my review. lf you would like to talk through the details of my decision please call me or a member of my team on 0845 300 8465 or if you have any extra information that you think may affect our decision please get in touch. We're here from 9am to 5pm, Monday to Friday.

lf you are unhappy with the decision and want to take it further. you can get in touch with the Financial Ombudsman Service. You'll need to contact them before 18 December 2012 - l've enclosed a leaflet with some information about the service and how they could help you.

Help please

I have 2 credit cards that are 10K and 8K respectively - neither have ever had PPI and I don't believe i've ever been late or been charged any penalties. I have paid the min payment for many years and managed to reduce the balance a small amount over the past 6 years, but not very much due to min payment vs interest.

Is there any way I would be able to reduce the balance - maybe on the basis that I have paid vast amounts in interest over many years? Or does it just not work like that - do i have to go down the default route to get anywhere.

I have been non resident in the Uk for nearly 2 years and live outside of Europe/USA.