Getting a settlement figure out of RBS - what a saga!

chartreuse_2

Hi all
At the end of my saga I did get hold of some actual facts, so this is not just a moan.

OK, so I have a flat rate loan with RBS (taken out in Jan 06). We're in the process of moving house and intend to clear the loan with some of the proceeds of our sale. Chains etc being what they are it took some time to exchange, which resulted in me asking for a settlement figure three times.

I called in August and was told £21,000.
I called in early Dec and was told £20,450 if you settle by Jan 3rd.
I called yesterday to ask for a figure for Jan 30 and was told £20,630.

"Hold on a minute!" I cried, "Surely my balance should be going down not up." I spent 15 minutes talking to staff in my RBS branch who insisted that the figure was correct. Of course they couldn't explain the calculation, so the conversation kept going "But I've explained it." - "No you haven't, you've just said 'Trust me'".

Eventually I suggested that possibly the settlement figure they were offering didn't take account of two regular payments due between now and Jan 30. "Oh, no. Our system takes account of everything!", the more senior staff member to whom I'd been transferred told me sternly.

So, off I went to call direct banking. After 40 minutes and being transferred through seven different people I finally found a young man who, after talking with his manager, was prepared to admit that the RBS' system did not take account of scheduled payments when calculating a settlement figure. What a surprise, my branch's knee jerk "we're always right" reply was wrong.

In fact, according to my helpful young chap, the only way to get an accurate settlement figure is to ask between the date of the last scheduled payment and the desired settlement date. While this strikes me as ridiculous, it might be useful info for others contemplating settling an RBS loan.

garry_s

Similar thing happened to me with RBS. When I complained when I went into my branch it was like a scene from Little Britain "computer says.....!"
Eventually I was told it was Rule of 78 approved by the OFFICE OF FAIR TRADING. That was a lie. I had to go on Google to find out all about Rule of 78 which is a complex way of calculating interest and benefits the bank and I found out that the OFT have advised banks to phase out Rule of 78. But your average bank teller even manager at RBS has never heard of Rule of 78. To cut a story short I complained (IN WRITING) that the settlement figure using Rule of 78 had benefitted the bank by £100 rather than if they had used 2 months interest. I got a brief apology and £100 was credited in my account.

rosysparkle

I had a similar problem with RBS. I got several different settlement figures, all of which I was assured were correct. I asked them to settle the loan from my RBS current account, I did not authorise any particular figure, just asked them to settle the loan. The money left my account, and was put back in three days later. I called to find out why and was told that they had taken the wrong amount, so it was returned to my account. This happened twice before they managed to settle the loan.

chartreuse_2

Thanks both for the replies, it looks like I have a couple of hurdles looming. First, actually getting them to let me settle the damn thing and second, checking their calculations then claiming back any extra I'm due.