Over charged for Rbs loan?

ineedsomeinfo

Can someone help me. I took out a interest free graduates loan in 2006. It was for £1800. Now when i happened to look at the agreement today (whilst looking for something else) i noticed it says
Payments: b) The loan will be repayable at intervals of 24 months(s) comencing one month(s) after the loan is first drawn by payments of £150.00 and a final payment of £150.00.

Now this was all paid and actually was settled early. But when i think about it i think something isn't right. Now it was an interest free loan. And when i do the calculations of 24 x £150(monthly repayments) i get £3600. Now am i missing something? Can you please give any advice. Thank you so much!

[Deleted User]

Are you sure it was an interest-free loan, and not a low-interest loan? Even then, it's not really 'low interest'...

Who was your bank?

I've never heard of interest-free loans for graduates...low interest maybe, but not interest free.

On the loan statement, is there a section that says 'total charge for credit'?

ineedsomeinfo

No it says it was an interest free loan on the loan agreement.

jen_a_c

Was it a loan to pay off your graduate overdraft? If so, I believe RBS/Natwest did offer an interest free product.

ineedsomeinfo

Yes it was a loan to pay of overdraft. I know that it's def a interest free loan as it says so on the oan agreement document.

jen_a_c

It does appear that somebody has set up your repayments incorrectly - make an appt at your branch and take the loan agreement with you (don't give them the original though!!)

BigDave81

Silly question but did you actually pay £150 a month for 24 months, or at least up to the point you paid the loan off early? £150 a month means th eloan would have been repaid in 12 months interest free.

Definitely worth a call to them to check if so.

[Deleted User]

Definitely sounds like something's gone wrong somewhere, but don't panic: prob the best thing is just go into the branch and speak to someone who can look into it for you. I'm sure this is the sort of error that they'll accept and deal with promptly, so I wouldn't get stressed or angry at this stage.

Let's hope you get a prompt refund - £1,800 is a nice bit of cash to get back!

jen_a_c

Did you have, or were you supposed to have, a repayment holiday at the start of the loan?

ineedsomeinfo

No, well what happened was i paid £150 for 9 months. Then at that time i got another totally independant loan from Rbs for my new car. Now as i said this awas a totally different loan. But my interest free loan was paid by a standing order each month, but due to an internal error this standing order was cancelled as someone at the branch had obviously got mixed up with the two loans for some reason. Now i got a call from the bank 5 months later saying that my loan hadn't been paid. I was shocked and went to the branch to complain. They admitted it was their mistake. The told me they would set the standing order back up for me. The odd thing was that they set the new amount at £87.97. Now i didn't think much of this at the time. But when i was looking at the loan agreement yesterday (just looked at it as i was looking at the other agreement to claim back my ppi) i noticed this mistake. I went right ahead and checked my bank statements for this period. I calculated that i have paid back a total £2378.31. Which involved 9 payments of £150 then 10 payments of £89.97 and then a final payment of £150 Now this is more than £500 more than i should have paid. I have sent a letter to RBS explaning all of this. And explaning how angry i am. I understand maybe i should have checked this more at the time. But i didn't in a million years think a reputable bank would do such a thing. What annoys me is that they must have realised that i was paying back too much a month and cut down the payments. But they didn't tell me this. And then on top of that they still over charged me.

[Deleted User]

So, actually, the situation is completely different to your original post.

Perhaps they applied penalty charges in some way? Or the interest varied because the duration of the loan differed from the original set-up? If you missed payments for 5 months (not your fault) then it's akin to taking a payment holiday - during which time interest would have been applied - so actually the £500 discrepancy is sounding a lot more logical.

That said, it doesn't mean it's correct as if it's their fault then they ought to put you back into the situation you were in prior to their error (e.g. scrapping the interest for those 5 months).

Go into the branch and speak to them, or if not just write a polite letter explaining everything and then see what they say.

I hope this helps.