Settling £3000 RBS overdraft

[nks22]

I had a £3,000 overdraft facility on my RBS current account which I used to the full (!) but was unable to maintain repayments on following illness and ending up on long term sickness benefit (ESA). In January 2012 I reached an agreement with RBS to freeze the interest on the account and to pay £1/month by SO. This has been reviewed and renewed each year, most recently in April 2015 for a further 12 months. I've maintained payments throughout that period and maintained good relations with the bank.

 

Last month I returned to full time employment. I'm willing to re-pay RBS's overdraft but want to be careful about how I go about it – agreeing no more than is necessary. So:

 

1) How soon should I notify RBS of my change of circumstances?

 

2) Is there any point in offering a full & final settlement? If so, at what %age?

 

3) Should I expect interest to be applied to the overdraft in future and, if so, how much would be reasonable?

 

4) If I make a repayment arrangement what is likely to be seen as reasonable? (I also have about £25,000 owed to various credit cards or DCAs, mostly with similar arrangements in place.)

 

I have two other unblemished and unconnected bank accounts into one of which my salary will be paid so would continue to pay RBS by SO.

 

FWIW my RBS account is in Edinburgh (I transferred it there from England to avoid a threatened takeover by Santander) but is now managed by their collections department in Birmingham.