RBS Loan Quesion

[rafc1968]

Hi

I have an RBS Loan and am about 3 years into it.

Last year due to drowning in other debts I came to an arangement with RBS to pay just £30pm instead of the normal £326pm.

I have made all my payments with no issues but now that 6 month period has ended I know I cant go back to £326pm as this would leave us with very little to live on.

 

In that time interest has still been added to the loan account and I feel it is getting out of control.

Any help or advice greatly appreciated.

[citizenB]

Ouch so you didn't ask for interest and charges to cease during that 6 month period.

 

I think you need to prepare a Common Financial Statement - you can get help with this via National Debtline.

 

Then you need to approach RBS with your new financial situation only this time, you need for them to cease the interest and charges.

 

Any penalty charges added during this time, you should be able to reclaim - was there Payment Protection Insurance on the account ?

[rafc1968]

Further to my previous posting I have now had a Formal Notice Of Intention from RBS that unless I pay the arrears on the Loan of £3115.72 by 12th June they will take the matter to court.

 

I am not in a position to pay this amount and just wonder what I need to do now?

[citizenB]

Hi, send the following letter to them. Enclose your Income & expenditure form. If you don't have one, then I suggest you speak to National Debtline and ask them to help you prepare a Common Financial Statement. Send the statement/budget form with the letter below. Send by Recorded Delivery and keep the receipt of posting attached to your copy of the letter.

 

 

[Your address]

 

 

[Their address]

 

[Date]

 

 

Dear Sir or Madam

 

Acc/Ref No: XXXXXXXX

 

I am in receipt of your letter dated xx/xxxx/xxxx. I am very disappointed that no satisfactory compromise can be reached in this matter.

 

As I have already explained, I can only afford £xx per month at the present time. This is the only realistic payment proposal bearing in mind the enclosed personal budget sheet.

 

You have stated in correspondence your intention to commence proceedings in the county court against me. The commencement of legal proceedings under such circumstances could be counter to the ‘Overriding Objectives’ of the new Civil Procedure Rules. You will be aware that the Overriding Objectives under pin everything the court does. Moreover, paragraph 4 of the Protocols Practice Direction states that in cases not covered by an approved pre−action protocol,the court will expect the parties “to act reasonably…….. In trying to avoid the necessity for the start of proceedings”.

 

I would suggest that your refusal to accept my offer could be viewed as unreasonable and I would ask the court to consider this matter with reference to the Overriding Objectives.

 

The offer of £xx is of course still open for you to accept.

 

Yours faithfully

 

PRINT OR SIGN YOUR NAME DIGITALLY

 

 

[citizenB]

BTW, you didn't respond to an earlier question - was there any Payment Protection Insurance applied to this loan ?

[rafc1968]

BTW, you didn't respond to an earlier question - was there any Payment Protection Insurance applied to this loan ?

Sorry No there is no PPI on the Account.

Thanks

[citizenB]

That is a pity. Lets hope the letter above will prompt them to see the error of their ways

[rafc1968]

Thanks Citizen B However I have just spoken to them again an they are refusing to Freeze interest so the debt is just getting bigger each month.

[citizenB]

When you say "spoken" is this on the telephone or in writing ?

[rafc1968]

On the phone.

[citizenB]

Oh dear - you really must stay off the phone - if they do start litigation you will have absolutely nothing to prove these conversations. Unless you have recorded them ?

 

Send the letter above - get them to put their refusal into writing. The last sentence should include that the offer is based on them ceasing charges and interest.

[rafc1968]

Thank You

I will do everything by post from now on.

[citizenB]