RBS royalties overdraft

[wittsend]

Hi

can anyone tell me if i am able to close my royalties account even though it has an arranged overdraft still running

we are paying 30 quid into it a month but the intrest and charges taken mean it is only going down by 3/4 each month

we dont even use the blasted thing as we were forced into taking it years ago by some idiot of an advisor at the bank, when we were having a few problems (before the major ones took over a couple of years later) and we then changed banks as the overdraft was eating all the income, rbs said at the time that we could not close the account as we had to pay off the overdraft

 

or should i just write and say can't have it aint got it

 

witts

[rebel11]

Thread moved.

[wittsend]

thank you

[jdes26]

They will ditch the account after 6 months if u pay nothing and a dca will b on your back

if u don't pay

to close it u have to pay full amount

[wheresmyppi]

Do you have any Loanguard on this? I only ask because I was in the same position but neer knew until the overgraught was cancelled and I had a letter telling me the loanguard policy had been cancelled.

 

If you had LG, get a PPI reclaim in.

[BankFodder]

where are you on this now?

 

I know that banks generally speaking make a policy of refusing to allow accounts to be closed whilst there is an outstanding overdraft. However, this seems to me to be very unfair. I think that there is a basis for challenging it.

 

How much is the account costing you per month in addition to the cost of the overdraft? In other words, is there a monthly account fee that you are paying?

 

Have you tried converting the overdraft into a loan?

[wittsend]

the account fee is 6.95 per month, on top of the intrest, which confusingly changes every month can be £18 one month and then could be £20 the next.

 

we have had a letter saying that the royalties accounts are being changed to another name, as they are withdrawing some of the benifits,

the account fee is being increased !!

 

but it says if we're not happy with this we can call in and change account to something else.

 

just have to find time to go to a branch, as the nearest RBS is 25miles away from us

 

I think with our credit rating and amount of debt a loan MAY be out of the question

[BankFodder]

okay, I think you're in a good position.

 

I don't think that they are entitled to prevent you closing the account anyway, – but as they are now changing the terms and conditions of the account this entitles you to refuse to accept their new terms and conditions and therefore close the account.

 

The bank won't like this and you can look forward to trouble – but we will help you all the way and I expect that you will win.

 

I am assuming that you have received notification of the account changes recently – I hope you have!

 

you will need to work out how long it would take you to clear your overdraft at your present rate of repayment. This will be the basis of your proposal to the bank.

 

Write your bank letter thanking them for the notification of account changes dated XXX date. Tell them that you are not prepared to accept their new account conditions and therefore you accept that the effect is that the account will be closed with immediate effect.tell them that you will continue to clear the arranged overdraft at the same rate of £30 per month as you have been doing so far.

 

Tell them that you are returning your cheque book and any cards which are associated with the account and you want confirmation in writing from them that the account is now closed.

 

Don't imagine that that will be the end of the matter. They will rear up against you. They will either refuse to close the account or they will write to you and require you to repay the overdraft immediately – or at very short notice.

 

You will have to be ready to deal with this unpleasantness. The fact is that by moving the goalposts on your account they have put you into a position where you are entitled to accept or reject the new terms without any disadvantage to yourself. With our help you will be able to force the bank to accept this position, but in the meantime be prepared or unreasonable behaviour, bullying, threats etc – in short all the kind of boorish behaviour that we have come to expect from our high-street banks.

 

Are you up for it?

[wittsend]

Hi yes we did receive notification of the changes can't put my hand to it just now as decorating and every thing is piled up.

 

we owe £1393 and at the moment after intrest and account charges we are paying about £23 per year off the ballance, so will take around 60 years to clear

 

paying £30 a month off without intrest or charges would mean we would pay it off in just under 4 years

 

as for the bullying and threats, we have had some of the best try it, I have been managing our debts for the last 9 years, they started at £100k+ and up to now have reduced to about £89k

Hubby has retired from work but only gets a work pension so income droped drasticly.

have a truecall so most contact is by letter.

 

nothing tried is nothing gained

 

bring it on

witts

[BankFodder]

Great. Well keep all your correspondence very carefully filed.

 

Write the letter I have suggested and send it special delivery. I hope that it goes well for you but if not, then come back here and we will take you through a very interesting process which I have been aching to try for a long time.

[BankFodder]

By the way, there would be interest on the OD - but not the account charge

[wittsend]

By the way, there would be interest on the OD - but not the account charge

 

then why dose the intrest change upward as well as down every month??

 

and would that mean it would never be cleared

Edited December 3, 2011 by wittsend
question

[BankFodder]

I think that it would be sensible and also fair to come up with a scheme of repayment which would eventually pay the overdraft off. Don't forget, that they do have a right to call in the overdraft at any time. However, this would have to be done on terms which were fair to you. I think that they would eventually have to agree a fixed rate of interest, a fixed rate payments with a fixed date to clear the debt. I don't think it would be fair of you to expect an interest free loan. However, once you read a fixed rate repayments, I think that you could reasonably expect a reduction in the interest rate so that it equalled an ordinary personal loan. In fact what you would be doing would be proposing to them that they convert the overdraft into a loan.

 

Don't forget, but the real point of this exercise is to force them to close the account so that you are not paying an unnecessary account fee but instead apply the same money to repayment of the debt.

 

Start off by writing the letter. You must take immediate advantage of their account changes. If you allow too much time to pass, they will be able to say that you accepted the changes.

[BankFodder]

Just checking - have you written the letter?