RBS left defaulting account until nearly paid off!!

Stevev99

Does this seem harsh to others?
I've been dealing with the CCCS for a year and a half now and it's been very smooth.

One of my debts was to RBS for £1400 on an overdraft account, they agreed the reduced payments and all was fine but I notice from my credit record that they didn't default the account until it was down to just £27 and just before it was cleared.

This does seems a little harsh in my opinion even though I'm sure they were within their legal rights. Just doesn't seem very professional....

thestealer

Strikes me as bit of sour grapes to be honest. I think they have a right to default the account at any time though if minimum payments have not been made. I'm not too sure how that applie to an o/d though, they are slightly different.

Tixy

There is something in the OFT debt collection guidelines that suggests a default should be applied within 6months of you paying less than the minimum. I guess with an overdraft its harder to pin this down as obviously it doesn't really have a minimum repayment. Might be worth looking at the guidelines though - and then maybe try writing a letter to get them to remove it (can't hurt to ask at least)

dancingfairy

I would have thought the default datre would be quite clear if you stopped using the account and set up a standing order to clear it and if the rules say within the first 6 months then that doesn't appear to have happened here so it would be worth investigating further.
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amiehall

It does seems spiteful like they want it to be on your record as long as possible....

Congratulations on getting it cleared though :j

GeorgeUK

Did they actually send you a default notice through the mail?
If not, you should complain - this gives you 30 days to clear the debt before a default is put on your credit file. Check to see if you received this or not.