Urgent advice needed re RBS od/loan

LDJ2009

Hi, i could really do with some advice regarding my situation with RBS

I have a loan with a balance of £12506 outstanding and an overdraft of £3500. I have been paying the loan without fail and the overdraft is on a reducing arrangement as they originally removed the overdraft last year but agreed i could repay it back monthly.

I had £200 outstanding on a payday loan debt which was guaranteed by 2 x £100 cheques. The debt was originally much higher and i have been steadily clearing it each month.

I was really unwell last week and forgot to renew the 2 cheques and both were presented to the RBS account. The first one took me overdrawn yesterday as i did not have the funds to cover it. I rang RBS who confirmed (2 departments) that it was being returned as Insufficient funds even though the cheque was guaranteed.

I spoke to the collections department who advised me as the cheques were being returned, my overdraft should fall back under it's limit overnight meaning the arrangement wouldn't be broken as a condition of this agreement is that the overdraft limit cannot be exceeded or the overdraft will be removed and i will be expected to pay the full balance.

On checking my account this morning, the cheque from yesterday has been paid and todays one has also debited.

I was also told yesterday that although my loan was not in arrears, that as it was also in collections because of the overdraft and if my overdraft arrangement breaks, my loan would also default.

I have been in tears since checking my account at 4.30am this morning not knowing what to do.

Due to a £200 error which i know is my fault, when i call them today, i expect to be told that the full £16k needs to be repaid or else. The Lady on the phone was talking about door step collection and everything if i don't repay the debt in full. I don't even earn that in a year

Please help, i'm not sure what to do.

Thanks

L x

NeverAgain_2

...i'm not sure what to do...

Nothing looks like a good option.

The bank seems to have paid both cheques.

If I read your post correctly, your account is back where it should be.

Why call the bank at all?

LDJ2009

Hi, the 2 cheques have taken my account £200 over the agreed overdraft meaning the arrangement has broken.

I was advised at any point that this happened, the overdraft would be removed and i would be in an unauthorised overdraft and they would demand the £3500 be paid back immediately.

Thanks

pmf63

Banks are a nightmare! My wife and I have been trying very hard to keep everything in our bank running sweet. Because we are on such a tight budget what with paying back all that we owe and having all of our bills come out of our acount on the 1st of each month, we check our accounts online daily. Three years ago when our youngest was born we failed to check the accounts and missed a payment that was made taking us a couple of pounds overdrawn. They lumped a £25 charge on us and interest going from £2 overdrawn to nearly £30 overdrawn and then started to send us what other so poetically call 'threatograms!'

No amount of talking to them would get them to understand that after years of perfect control the only reason why it slipped by £2 was because my wife was in hospital pushing out our youngest. Needless to say that we have run an even tighter ship since. This incident is proving to be a very good form of contraception.

I hope you get the advice you need ... In fact I know there are some fantastic people on here who will advise accordinly.

happyhaddock_2

Hi, sorry to hear of your troubles. It sounds like your finances aren't in too good a shape at the mo if you're having to use payday loans. I would suggest that you try and forget about RBS for the moment, no-one is going to turn up at your door in the next 10 mins . Go the CCCS website www.cccs.co.uk (they are a free debt charity, recognised by the finance industry) and complete their debt remedy. This is completely confidential and no-one else can see it, also their phone lines open at 8.00am give them a ring and explain the situation, they are really understanding and lovely, and I'm sure they'll be able to help you. Good luck

LDJ2009

Hi, i've just spoken to them and they are going to default me for the overdraft unless i can repay the full amount on demand. After that it goes to their recoveries team.

i'm really upset that my loan is also being lumped into this as it's up to date. How can they default me on a loan that isn't in arrears.

The Lady on the phone refused to help in anyway and was actually quite rude. It's lovely being spoken to like i am an idiot

NeverAgain_2

...It's lovely being spoken to like i am an idiot...

Might be time to stick to written communication.

They can't have what you haven't got, so demanding full repayment instantly is not going to get them anywhere.

I don't know how you are paid or when you are next paid, but if the bank is going to attempt to be nasty, I'd be wary of letting my wages go into that account.

Can you 'park' the RBS account and set up alternative arrangements elsewhere?

Obviously, RBS will chase you for the debt and you will need to deal with that, but it will be simpler if you don't need them for any other purpose.

Ultimately, the recoveries team will have to accept any reasonable offer you make.

They are entitled to their money, but they are not entitled to bully you.

nottoolate

LDJ2009 wrote: »

How can they default me on a loan that isn't in arrears.

if you can't pay the loan form the od account, then you will default though?

may also be terms and conditions on the loan to say a valid direct debt must be set up? if so non-payment via the one to the od or it being invalid as the od has been called in may be a breach of the loan agreement?

pmf63

nottoolate wrote: »

if you can't pay the loan form the od account, then you will default though?

OP has been paying this loan though WITHOUT defaulting. There is usually a clause that says that the lender can ask for full and final settlement at anytime but I doubt that they could default it if payments are made on time and there are no missed payments! I am sure that if it ever went to court it wouldn't look good on their part.

Just my thought ... I don't know for sure.

LDJ2009

Hi, we already have a bank account elsewhere so the account with RBS wasn't really used. All that came out of it was the payment for the RBS loan. I was also paying into it each month to cover the overdraft reducing term.

I'll call on the day the loan is due to make a card payment as RBS advised that once the recoveries department take it over, the loan and overdraft will be classed as one account so all payments will come off the total balance. They did say i can also pay the loan by standing order from another bank as well.

With regards to the payday loan debt, this is the last of what i owed. I'm working 6 1/2 days a week at the moment to get my debts cleared and it's ironic that at this point, i have these problems with RBS.

Thanks for your replies. I really appreciate your advice.

nottoolate

yes. but if they aren't going to be able to pay it then a default is inevitable.

or not having a valid direct debit set up may breach the terms on the loan which would be an automatic default.

or if the the loan and account are linked a default on one may be a default on the lot