Can I claim back my RBS loan repayments?

scampi112

Hi all, I’m a 1st time user of the forum & hope you can help. In 2003 whilst in full time employment I took out a loan with Royal Bank of Scotland for £3229.00 (including interest over 60 months) and was paying approx £53.00 per month. In 2005 I became incapacitated with a chronic back condition and have been unable to work and living on incapacity benefit & income support ever since - along with additional help towards my mortgage & council tax payments. After a couple of payment difficulties last year due to my situation the loan was passed over to Triton credit services ( which is just a trading name for RBS) and I have been paying them £50.00 a month regularly by direct debit. I enquired about the remainder of my loan to Triton recently and was shocked to find I was still owing them approx £2300.00!! after 7 years of payments. I requested and received statements dating back and a letter explaining the reasoning of the amounts – both of which have various anomalies I have to look into, but the real point of my communication is that I found an RBS Loanguard policy taken out with the loan in 2003 which I had absolutely no idea existed and it may have been sold to me ‘quietly’ which might explain my ignorance of it. However this is not the point – In 2005 I met all the criteria (and still do) for ‘being permanently off sick’ whereby my Loanguard should have paid the outstanding amount of the loan. I have my complete medical history etc. to back this up and along with extremely strong painkillers, I am also on anti-depressants as a direct result of my financial situation. Can I legally claim back all the payments I made which should have been covered and paid off by RBS themselves – or can they simply say it’s my fault for not acting on my policy? It would be such a weight off my shoulders I would probably float down the road! I have yet to approach the bank with this information as I wanted to know what my legal rights are before doing so; would I likely need a solicitior etc… hope someone can help a frustrated man – no, not in that way!

never-in-doubt

Hiya

Sorry to hear about this...... in a nutshell yes, you claim everything back and interest (8%) on what you've paid to date from when you should have claimed using longuard policy.

They may say that the policy became invalidated once you ceased payments to which you'd argue that you made it clear to them you were incapacitated and they never mentioned claiming. Put the onus of blame on them to prove that you made a mistake.

If necessary, lie and say they told you on the phone you were not eligible to claim. In the meantime you need to be considering speaking to someone that can help with this, it could be quite a messy case as you'll have them denying all liability to which you should cease payments to which they will use against you.

Personally, i'd send them a letter and quote in there that you intend to give them 28 days to come up with a suitable offer, for example closing the account and clearing any balance as a gesture of goodwill prior to you seeking legal advice. You have them over a barrel....

Your legal rights, in a nutshell are in your court so long as you say in 2005 you spoke to them and they said you didn;t have a policy and its only when you got the statements through you realised that was untrue and so here you are querying it now.....

Maybe unethical but i'd sooner you got the loan wiped as opposed to upsetting a large bank that should know better!

If you're stuck give me a yell and i'll sort you a letter to get their !!!!!! into gear!

scampi112

Thank you so much - I most likely did contact them way back regarding my situation & recently when I was expecting the loan to be paid off and discovered the balance of £2300.00 I knew something was seriously wrong somewhere and then found the Loanguard!! I'll send them a letter with my intentions - thank you again