RBS Student URGENT help :(

citylover

Hi, I have a major problem wiith RBS and I was hoping someone could help. Im sorry that this is a long post but I'm really upset and at my with end, I've been in bits all day. This is the story:

Basically, I am about to go into my third year at University in Sheffield, and according to RBS this allows me an arranged overdraft of £1600. A few months ago, I received various correspondence (most of which I unfortunately no longer have) from RBS saying they were going to automatically change my account to a Graduate Royalties, despite the fact i wouldn't be graduating for a year. Given the automatic nature of this, I assumed it was simply standard procedure and that my overdraft limit for third year would remain at £1600, NOT £2000 as it is for Graduate Royalties. A few weeks ago, I decided to increase my overdraft to £1600 due to financial difficulties. When I went into my hometown Manchester branch to arrang this, to my surprise I was told I could have an arranged, interest free overdraft of £2000 due to my 'good banking history'. Naturally I said I thought the limit was £1600, but was told otherwise. I decided against the full £2000, instead increasing it from £1400 to £1700, £100 more than the offical third year student amount. Naturally I was surprised but as I had been told by the bank that it was acceptable, and as my new limit of £1700 could be used without penalty, I put it down to a change in the regulation or simply, as the guy had said, due to my good banking history.

However, recently I was hit with two £100 guaranteed cheques that I had forgotten about, which took me over my pre-arranged limit of £1700 to about £1860, which I could not possible get back up to within my limit until my student loans come on the 28th September. Naturally I expected charges, but I am utterly confused and incensed about what happened next. These cheques came out of my account on the 14th of August. However, I assumed I could increase my overdraft to £2000 as I was told, and avoid any further charges. But when I went into my Sheffield branch yesterday to request this, I was told that the information I was given in Manchester was incorrect and that as a third year student I was only entitled to £1600, and when I told them that even before that I was informed by letter that I had been put on to a Graduate account, their response was just, 'Sorry'. I left the branch confused, but thought I'd just hold tight at £1860 overdrawn until my loan.

Today, when logging on to digital banking, I saw that I had been hit with £118 worth of charges, £70 guarantee fee (I presume the two cheques, £35 each), £10 maintenance fee, and a £38 unpaid item fee. Two things confuse and worry me about this. Firstly, I am confused as to what the unpaid item fee is referring too and am concerned that there seems to be no evidence of a Paid referral fee. Should I expect that charge of £90 too? Secondly, as these charges obviously increased my unarranged overdraft further, can I expect a similar extortionate charge at the end of this calender month?

Finally, I was wondering if I went into my branch on Monday, if I would have a fairly solid case against them to claim my charges back, partly or in full, or at the least get them to waive the next months if I do incur any? I ssay this because I am clearly a victim of some sort of mix-up with the whole Graduate account thing, through no fault of my own, and was told I could have a £2000 overdraft which I was later informed I couldn't, when I actually needed it. It seems to me that they have messed up somewhere because it doesn't add up. I take full responsibility for getting into an unarranged overdraft in the first place, but the main points of concern are the potential of an extra £90 on top of the £118 paid, and the possibility of them providing me with some compensation for the mix up. Sorry for the long post. Any help would be MUCH appreciated Thanks

natweststaffmember

This is a bit of a catch 22 for you. If you are in your third year then you are ineligible for the Graduate Royalties account and therefore the £2000.00 overdraft, even when you were made aware of this in the Manchester branch, rather than correcting them or saying that it was incorrect, you took more than was allowable. If for example, you had changed courses during your first year or had redone a year then it would explain the issue of the overdraft. To be totally honest, I can't see anything that would make me offer a route to the bank on Monday because in both Student and Graduate accounts, RBS Bank charge for what you have stated above, and furthermore you knowingly were aware of this and took more than you knew you should.
I would reclaim using the standard method here since I don't see any room for calling it bank error or for a refund on the basis that you could have had £2000.00 as a Graduate account when you are still a student and knew you weren't entitled to it anyway.
Keep us updated and if it is the first occasion then they MIGHT waive some of the charges on that basis alone.

citylover

Thanks for your help There are a number of points I wish to clarify however. Firstly, I did say to the advisor in Manchester that I was only aware of being allowed 1600 as I was in my third year, and was then told it doesn't matter, as I was showing up on the system as being eligible for the account and overdraft, despite me explicitly stating I wasn't a graduate, hence why I assumed it was all OK; a new regulation or such, I had no reason to doubt or dispute what I was told and therefore I don't think I took more than I should because as far as I knew, my limit was £2000; I thought that if I did get into difficulty, I had £2000 to fall back on. Secondly, it is my first offence and I acknowledge that I am liable to pay the £118 fee, but I thought that I could avoid further costs by extended my overdraf to cover this as I thought I could, and when told the contrary, resulted me to be liable for a second months costs as the fees obviously made me go further over my limit. It is this that i take umbridge with. Theoretically, I could have extended my overdraft to £2000 when offered, but I didn't due to fear of overspending, and ironically if I would have done I would not be having this problem! In addition, it clearly stipu;ates that if any charges are to be made I should be provided with no less than 14 days notice. I received zero notice. I'm interested with this new clarification you think this has changed your opinion at all? Thanks again

natweststaffmember

on the first point, thank you for clarifying that.
On the second point, credit scoring is variable so for example, getting the charges would have affected their ability to lend or extend the overdraft to you so it was a misunderstanding on your part. If it is a first time offence then explain everything in writing and see if they will refund partially some of the charges on the basis of a first time offence.
Not sure they will but hey ho, it is worth asking the question.

citylover

Thank you once again, you've been very helpful. It's very annoying because my account will in 2 weeks time be credited with about £3000 by my student loan so it is certainly not going to a persistant situation. One final thing, should I address the letter to the branch directly or elsewhere? I would like it to be solved as quickly as possible as I currently have zero money and am getting further into debt with friends in order to satisfy basic living requirements. Thanks once again.

natweststaffmember

citylover wrote: »

Thank you once again, you've been very helpful. It's very annoying because my account will in 2 weeks time be credited with about £3000 by my student loan so it is certainly not going to a persistant situation. One final thing, should I address the letter to the branch directly or elsewhere? I would like it to be solved as quickly as possible as I currently have zero money and am getting further into debt with friends in order to satisfy basic living requirements. Thanks once again.

Branch Manager with regards to asking for an initial refund outside of the usual process that is followed here.