RBS Mental Overdraft Payment Help!!

Suzee02

Hi

My friend recieved a letter today from the RBS stating that they're going to stop his repayments of £25 a month for his overdraft and he has to pay his £2000 overdraft in the next 28 days! IF he doesn't they'll pass it onto debt collectors!!?!?!?!?

This is mental surely the RBS can't do this if he's still making installments to his account? He's been doing this for about a year now and he's worked out that the RBS are still charging him interest on his account so over the course of a year he's paid off about £18 off his overdraft!

What do you think he should do?

chanz4

repayable on demand, its in the t&c's

Suzee02

Yeah, but it's impossible to raise that kind of cash. Do you think he could negotiate with them?

zppp

Suzee02 wrote: »

Yeah, but it's impossible to raise that kind of cash. Do you think he could negotiate with them?

I would suggest he calls up and asks to speak with customer collections who may agree a repayment arrangement.

Clive_Woody

Suzee02 wrote: »

Hi

My friend recieved a letter today from the RBS stating that they're going to stop his repayments of £25 a month for his overdraft and he has to pay his £2000 overdraft in the next 28 days! IF he doesn't they'll pass it onto debt collectors!!?!?!?!?

This is mental surely the RBS can't do this if he's still making installments to his account? He's been doing this for about a year now and he's worked out that the RBS are still charging him interest on his account so over the course of a year he's paid off about £18 off his overdraft!

What do you think he should do?

His best chance is to contact them and offer then considerably more than £25 a month so that the debt is cleared in a reasonable time. I would imagine the bank have looked at this and realised it will take forever for this debt to be cleared and have invoked their right to demand repayment.

KingElvis

Overdrafts can closed in very short notice, they are designed for emergencies and not for day to day living.

Make sure your "friend" has no other acccounts with the same bank or they will use the cash from savings etc to pay of that little beauty.

CLAPTON

without knowing the full circumstances it's impossible to say what's best
income, outgoings, other debts, current arrangements etc.

geoffky

This is just like the people who pay minimum payments on credit cards every month...what do they expect as they are just servicing the debt and at some point the bank or credit card company wants paying and the days of using your house as a cash machine are over so they are looking and wondering how are they going to get paid...hence pay me in 28 days or we will shock you into higher payments.

caledonian_princess

you may get a more helpful and sympathetic response on the debt free wannabe forums.