Contractual interest on RBS account

[animal_lover]

I was just wondering if there is contractual interest on RBS route 21 accounts and does anyone know what it is, I'm not to sure

[animal_lover]

I've just been on the RBS website and noticed this for my Route 21 Account.

 

Any amount overdrawn without an arranged overdraft or in excess of the arranged overdraft limit will be charged at a rate of 2.2% per month, which is equivalent to 29.84% EAR Typical (variable). Interest is charged in addition to the Maintenance Charge. The Paid Referral Fee and/or Guaranteed Card Payment Fee may also be payable if the unarranged overdraft arises from an informal request by you for an overdraft.

 

If your account becomes overdrawn without prior arrangement or any arranged overdraft limit is exceeded, you will be liable for a monthly Maintenance Charge.

The Maintenance Charge will be applied if you have an unarranged overdraft at any time during a monthly charging period. The charging period normally ends on the date that we send your statement to you.

£28

(£10 for R21**, Student Royalties, and Graduate Royalties)

 

Interest due on overdrawn balances

Arranged Overdrafts

1. Royalties Premier*, Royalties Gold, Royalties,

Interest Paying Current Account and R21 Account**

If you have arranged an overdraft facility with us in advance and

you use this facility within the thresholds shown below, you will

not pay any interest. If the amount you overdraw under an

arranged overdraft facility exceeds these thresholds, you will pay

interest on the full overdrawn balance – even the part of the

balance which is within any interest free threshold that applies to

your account – at the rates shown in the tables below.

Type of account Interest free thresholds

Royalties Premier* £500

Royalties Gold £250

Royalties, Interest Paying Current Account, R21 Account** £100*

R21 Account**

All Amounts 1.25 16.00

16.00% EAR Typical (variable)

 

Just a couple of questions

 

1- Can you reclaim the Maintence Fee as it relates to Charges?

 

2- Sometimes i have been overdrawn and sometimes i've gone over my Overdraft, Are the ones in red, the interest rate on each charge and the contractual interest that you can claim. I just want to make sure before i ask for my charges back

Edited July 3, 2008 by animal_lover
updated

[animal_lover]

can anyone help me please

[Sparkie1723]

can anyone help me please

 

No animal lover, you can't claim maintainance charges back as they are a charge for a service.

 

sparkie

[animal_lover]

What about the ones in red, are they the interest for the charges and the contractual interest.

 

I just want to make sure

[caro]

You can claim back any interest you have paid on your charges. The advanced excel spreadsheet in the CAG library will do the calculations for you. (see my sig for link).

[animal_lover]

great, thanks

 

Do you know what the contractual rate is as i've mis read the info it's 2.2% interest per month which is equivalent to the 29.84%. i thought one was for interest on charge and then the contractual rate.

Edited July 8, 2008 by animal_lover

[caro]

To complete the spreadsheet that I'm suggesting you use, the interest rate does not matter, as you would simply be claiming the interest that you actually paid on the charges.

 

This is not the same as claiming contractual interest for which at the moment there does not appear to be a legal argument, and I would suggest that you do not try and claim unless you are very confident that you understand it and could stand up in court, explain to the judge and convince that you are legally entitled to it.

 

I am not the best person to explain it, but maybe this tutorial will help. http://www.consumeractiongroup.co.uk/forum/bank-templates-library/145027-interest-tutorial.html?highlight=interest

[animal_lover]

i've got a thread going about the troubles of getting the D.A.R from RBS, Here's the link.

 

http://www.consumeractiongroup.co.uk/forum/royal-bank-scotland/146823-rbs-playing-games-over.html

 

Have a look if you'd like.

[kennyh]

Caro - in what way does the 'maintenance' charge differ from 'unauthorised o/d' charges that get cited as penalties in other banks? And, can the size of the charge be challenged for fairness since they have already hit you for the 'bounced' transaction?