How do I cancel an RBS loan during the cooling off period?

Syzygy

I'm wondering if anyone can tell me the procedure for cancelling a personal loan with RBS during the cooling off period?

My girlfriend went to her bank to discuss a loan and got pushed into taking out payment insurance which she doesn't need.

When she told the sales person she wanted to phone me to check about the PPI she was told there wasn't time, she couldn't decide to add or remove the PPI later and she had to agree there and then.

She signed on Saturday but now she would like to cancel the loan, mainly due to being tricked into taking out PPI. However the customer advisor said she would send her details of how to cancel during the cooling off period. I believe she has 7 days to cancel but it is now Wednesday and she doesn't have the information and the sales person has not returned calls so I'm wondering if anyone can tell me the best way to cancel? Is it as simple as just writing a letter to her branch??

foxwales

She must NOT spend any of the money. If she has a copy of the signed loan agreement; cancellation information will be contained on that.

Cat695

go straight into the bank TOMORROW with the papers and don't leave till they cancel it.....don't do it over the phone....

Syzygy

Thanks for the reply. Luckily the money won't be in her account for a while so no problem spending it but they didn't give her a copy of the agreement so she has no details. This is what has been promised in the post but the person at the bank hasn't returned her calls.

I am bothered about it going beyond the cooling off period. Would this be longer than 7 days?

chambta

The insurance has a longer cancellation period. This can be cancelled by the branch as can the loan itself though the 2 things are separate issues.

Cat695

i believe its 14 days but better to be safe than sorry.....go into the bank tomorrow then that person can't aviod talking to you......

Cat695

and i'm wondering WHY they didn't give her a copy of the contact/loan.....if she signed IN the bank on sat then they (i believe by law) HAVE to give her a copy of it so she can actually READ the contract......she needs to go in SOONEST


I think this bank person is worried because they are being naughty!!!

Syzygy

The contract is apparently awaiting a authorisation from the manager but I did think it was normal to receive a copy of what she's signed to take away.

foxwales

The Consumer Credit Act stipulates that when a Credit Agreement is signed they must either provide you with a copy of the signed agreement there and then or you must have a copy no later than 7 days of signing the agreement.

If the agreement does not arrive within 7 days; then the agreement is void.

Cat695

Make sure she checks her credit score to......surely now as shes not taking the loan she can have the credit search removed to.....to many credit searches is bad!!

countrygirl84

Hi. I used to work for Natwest (same rules etc as RBS). What will have probably happened is that the loan has been agreed in principle and needs signed off by the lending centre (based in edinburgh somewhere i think). This just means that they want to do additional checks before they draw the loan down and tranfer the funds to your girlfriends account. Either way, BY LAW, your girlfriend should have been given a Pre contract information which is a copy of the agreement. The advisor is breaking the law by doing this and could get in serious trouble. It also sounds like she has pressurised her into taking the insurance, which is also illegal as you are only allowed to explain the benefits and answer questions. You cannot recommend that the customer takes insurance. The final thing which is against the law is that she should have been given a copy of the insurance. So, this sales advisor obviously hasn't a clue what she is doing.
My advice to you would be to call the branch and arrange another appointment with the same person or the manager. When you go in, make it clear that you want to cancel the loan.
You have a cooling off period of 14 days for the loan and 30 days for the insurance. If you decide to keep the loan and cancel the insurance then you are best to do this within 14 days otherwise it can mess with the interest you pay later on in the loan.
I know it's long but I hope it helps.