RBS Loan

ginger68_2

Have posted part of this on the bank charges forum but it might be equally as relevant on here :

I have a loan with the Royal Bank Of Scotland, which is due to finish October next year, it's paid for by monthly standing order via my RBS account.

It and my Royalties Gold charge is the only payment which comes out of said account. All my other banking is done via Barclays (wages etc). When I get paid I take enough money out of the Barclays account to cover this and pay it into the RBS one. In over two years the RBS has never queried the amount being paid into my account (ie why it isn't my full pay) - there is no overdraft facility on the account either.

When I set the Barclays account up, Barclays transferred all my existing payments with the exception of the loan payment, which the RBS refused to cancel (they may have said at the time that this was due to there still being monies outstanding on the loan). However I also enquired directly to the RBS Customer Lending Centre in Glasgow and was told that payments could *not* be made from another account.

Does this sound right and is it allowed ? Am asking as I am seriously thinking of trying to reclaim bank charges but not if it means they're going to close my account, leave me with no way of paying the loan and expect the whole lot back in one payment ;-)

Xbigman

Many if not most banks that provide current accounts insist you pay for loans via the account. You can fight it but in your circumstances it is pointless. Just continue to pay into the RBS account and let them take it from there. Its costing them money to run the account but costs you nothing.

As for the bank charges. You should reclaim them immediately. Do not worry about them closing the current account. If they do you can simply pay the loan direct, but I doubt they will.
Regards



X

Astaroth

The RBS Royalties account gives you a preferential lending rate (or at least it used to before someone says it doesnt) and therefore as the loan is tied into the account it is possible that the loan has to be paid from it - if it wasnt then someone could open the current account, get the discounted loan and then instantly close the current account.

ginger68_2

Thanks for the replies - that's pretty much what I suspected.

Am going to send off for my last 5 years statements anyway and take it from there as by the time I get any charges back the loan will be just about finished (worked out yesterday that it only has 9 months left)

Thanks again for the help !

kenshaz

I would cancel the Royalties Gold,and put that money against the loan.