Hi There

I've had a Student Credit Card with RBS for over 3 years now. However, I have recently been defaulted on this card for being over the limit..by £25.

Over the past 2 years or so I've been in and out of hospital for various operations and complications, couple that with being a student, deadlines etc

and juggling a part time job and it's been a struggle.

This has caused me to miss a few months here and there payments, although I have always paid very soon after missing a payment.

However, most recently these charges have put me about 50 over the limit.

I never missed a payment after this, I always paid the minium.

However as I wasnt going back above the credit limit, i was being hit with further charges negating any payment I had made.

After about 2 months of this, the bank obviously decided to threaten me with default.

Last month, I was given a letter saying I was £60 over my limit and that a payment was required immediately to avoid them defaulting my account.

I was in hospital after an operation at the time, however I paid the £60 required on the final day of the due date.

The first woman I spoke to informed me that this would remedy the situation, and that I would not be defaulted.

However, when I called back to make the payment, i was also informed that my account had been hit with further penalties for non-payment and overlimit fee

(even though my account was removed from online banking and I had no way of knowing, i also assumed they would not continue to do this with my account frozen awaiting deafult).

She said i would need to make a further £25 payment to bring the account back within the £250 limit.

I said I would be able to do this at the end of the month when I would normally make my card payments.

about 2 weeks ago, i recieved another letter saying that my account had been terminated.

I called RBS to ask them why this had happened, but they were very unhelpful.

Would not listen to any of my explanations, basically said they were 'sorry' but there was nothing they could do to remove the default as I was still £25 over my limit

even though i paid them the £60 asked in their letter.

I was basically forced to make a £130 part payment of what was owed (£275 overall) and put onto a repayment plan to pay the rest off next month.

Now I was not given any written correspondance saying the extra £25 was required,

the only letter I have is the one saying that paying £60 due would remedy the situation.

I think they way i've been treated is nothing short of a disgrace.

The only reason I was over my limit was due to the disgraceful amount of charges I've been hit with over the years.

I no longer have access to my statements, however I want to write to RBS to get them to send me a list of all charges they have hit me with on this card.

The last time i checked, i would say i've roughly had to pay well over £400 in charges (£12 overlimit, £12 late payment a pop)

and interest on top of those charges would take it even higher.

I don't mean to be flippant, but at the end of the day that card is only a £250 student credit card.

I've been struggling along as most students are, and . To default me, to charge me that much in charges, etc is just appauling.

The fact they've been able to hit me with almost double my credit limit in charges is just wrong.

The only reason i've ended up getting 'defaulted' is due to them constantly hitting me with charge after charge even when i'm making payments to them.

To think my credit rating will be damaged for 6 years over this is depressing.

Some people are in absolute mountains of debt, thousands,

yet the bank are quite happy to be as unhelpful to me as possible as a student,

to not offer me any help at all, and to ruin my credit rating all over a £25 over limit on a £250 credit card.

To me, this just seems unnecessary.

I'd appreciate your thoughts on my situation.

My father works within the banking sector, and he thinks it's a disgrace and that I would definately have grounds to appeal for some kind of reclaiming of those charges,

and to get the default wiped from my record.

Any info you may have would be much appreciated.

Do you think i'm right in thinking this is unacceptable?

I had a brief chat with Citizens Advice,

and they seemed to agree with me, so i'd say I do have some sort of case.

At the end of the day, all I want is the bank to remove this 'default' from my records due to amount of blame that rests on them for causing it in the first place.

£500 of charges over 2 years on a £250 card is just ridiculous, hitting me with £24 + interest each time is just not on.

Thanks all

Greg

Hi welcome to CAG, yes this does seem unfair, but the bank has been looking at

the management of the account throughout it's life and that's why it was defaulted.

Did you actually receive a written default notice for this?

As I see it there is a possibility that the default is unfair as the the default balance

was made up of charges without which the account would not have been defaulted.

You need to make a formal complaint to the Compliance Manager at the banks head

office.

If you need help with this let me know.

Thanks for the quick response Brigadier2jcs

Yes I recieved a Default Notice dated 9th March which requested the payment of £60 within 17 days. I made this payment, that's when they also informed me they'd added further charges since the letter was issued and it would now be £25 over the limit, and they would require payment me to put it back into credit. 2 weeks later they sent the Account Termination letter and asked for full repayment of the outstanding balance on the card. I didn't get anywhere with the guys on the phone, they just wouldn't hear me out at all, all they said was 'sorry but we can't do anything now that it has been defaulted' and forced me into accepting this repayment plan.

I'd appreciate it if you could give me some help on how to speak to the Compliance Manager with RBS.

Cheers

Hi Greg,

I will draft a letter for you in the morning, never bother to use the phone

on a matter like this.

That's great, thank you very much for taking the time to help Brigadier.

Cheers

time to get reclaiming me thinks!

its easy to do.

have you all the statements?

if not SAR RBS.

if as you are saying the 'defaults' were the direct result of their unlawful PENALTY charges

then they should also be removed once reclaiming is successful.

dx

Hi dx

RBS terminated my access to online banking with that credit card after they issued the default notice, so I can't access it from there. I'm going to go into my local branch tomorrow and request they give me a full statement on the history of the card since it was opened. As far as i'm aware, they are required to give me this if i ask for it.

I would hope so. The extra charges even with my payment of the required amount caused the actual default, not to mention all of the £24 charges and interested over the years that have caused the issues.

Thanks

Dx anything you suggest I add to my draft??

Hi dx

 

RBS terminated my access to online banking with that credit card after they issued the default notice, so I can't access it from there. I'm going to go into my local branch tomorrow and request they give me a full statement on the history of the card since it was opened. As far as i'm aware, they are required to give me this if i ask for it.

 

I would hope so. The extra charges even with my payment of the required amount caused the actual default, not to mention all of the £24 charges and interested over the years that have caused the issues.

 

Thanks

you might be lucky and get them

though i would suspect they will refer you to HO.

and then SAR them.

dx

you might be lucky and get them

though i would suspect they will refer you to HO.

and then SAR them.

 

dx

Yeah unfortunately no luck in-branch, the guy just fobbed me off saying they wouldn't have the credit card statement records here and that i'd have to phone the Credit Card Department and ask for it.

Gave them a call, as expected they just asked me to write in asking for the account statement history, and to enclose the £10 fee etc. The guy gave me the address to write to, so i'll get that in the mail asap. I'm going to use the SAR template from the site, so should get back the whole history of transactions, charges, and anything else.

Once I get back that history, I add up all of the charges etc and get the proper letter sent asking for the repayment of said charges and the removal of default, on Brigadier's draft letter template that he's kindly writing up.

Am I also entitled to ask for all of the interest on these charges back too?

yes the spreadsheet [sOC]

will do that for you.

dx

Reading this again Guidance notes on placing defaults

when the cause of the default is charges without which

the acoount would NOT have been defaulted, NO default

should be recorded.

Don't know how I missed that, the default is therefore unfair.

Reading this again Guidance notes on placing defaults

when the cause of the default is charges without which

the acoount would NOT have been defaulted, NO default

should be recorded.

Don't know how I missed that, the default is therefore unfair.

Thanks for pointing that out, I wasn't too sure what the deal was regarding a default caused through charges etc.

If that's the case, they should surely pay back all of those charges applied over the life of the account and remove the default as they've not adhered to those guidances?

Thanks

Correct, I will rework the letter in the morning, I must have been dreaming:oops:

Hi Greg

Letter to RBS

Data Controller.

Ref: xxxxxxxx

Formal Complaint.

Dear Sir or Madam,

I write in reference to my student credit card issued

to on [date] No.xxxxxxxxxxxxxxx, RBS have place a default

entry on my credit held by xxxx xxx xxxs credit reference

agencies, It is my opinion that this default has been unfairly

placed.

As you are no doubt aware The Information Commissioners Office

Data Protection Technical Guidance states that no default should

be registered if the default sum is caused by charges without which

the account would NOT have been defaulted, as you will see from

your own records this is exactly what has happened on my account.

I would therefore make a formal request for all entries regarding this

entry should be removed from ALL credit reference agencies to which

you have reported.

I am enclosing herewith copies of correspondence received from RBS

regarding this matter.

Also I have to complain about the unhelpful attitude of your staff member

I spoke to on [date] regarding the default.

I would now expect you to reply to me within 14 days with a resolution to

this matter, I will be preparing a complaint to the ICO in the next 2 weeks.

There you go Greg recorded delivery to RBS Head Office.

Thanks for that Brigadier, I'll get that done and mailed off asap

Should i also send the letter template regarding repaying my charges alongside this, or separately?

Personally I would keep it seperate.