Rbs loan - why have they given me a rebate??

olivia84

Hi guys, wondering if anyone can help me with a query?

to TRY and give you the short version:

took out a £25000 loan with RBS in july 2005

monthly payments: £400 per month

defaulted on the loan in march 2007 - made no payment for 3 months then made reduced payment of £254 per month which was accepted for about 1 year.

RBS took us to court in july 2008 by which time OH had been promoted and we offered to repay at £600 per month which we have been paying since september 2008

as the case went to court - RBS were entitled to apply 8% per annum interest to the debt before they agreed to freeze it in May last year

the solicitor wrote to me with a total balance at that point (£14817.37) and advised that we had a further 24 payments of £600 per month to make with a final one of £417.37 in june 2012.

tried 4 times to make payment this month - not being accepted. called RBS at branch level (who can't really tell me much as it is kinda in the hands of the solicitors) who told me the loan is at nil (paid off) and i have £1600 in my current account! (we also had an overdraft with RBS)

phoned solicitors today who then contacted the bank and were told the same thing and that there has been a £4000 rebate applied to the account!

would anyone have any idea what this rebate would be for??? i am totally perplexed - the solicitor says she has to order up statements and it could be weeks before they have any news for me.

is it too good to be true that the loan is paid and i have £1600 pounds i can throw at other debts?

i am wondering if the rebate is for the 8% court applied interest i paid for 2 years before they froze it and they are just being nice in giving me it back?? i really have no idea - i haven't heard from anyone about this loan since last may and no one at RBS can tell me!! even litigation don't really know and they can only tell me whats on their screen and advise me to call the solicitor who has to contact them anyway!!

anyone any experience of this??

thanking you in advance

x

Tixy

Could it possibly be PPI? did the original loan have PPI on it? (just a thought)

olivia84

i don't think it would be ppi - i only ever took ppi out on our very first loan for £10,000 about 13 years ago - any subsequent consolidation loans we took out, i alwasy said no to the ppi - i dug out the original loan documents for 2005 and there isn't even a date on them! but it definately says there is no ppi

thanks

x

SeduLOUs

Only thing I can imagine is that the 8% interest that they were allowed to add was the Bank of England base rate at the time. Bank of England base rate plummeted to 0.5% and has been stuck there for over a year, so it could very well be a refund of overpayment of interest if they had continued to apply it at 8%.

olivia84

thanks - never thought of that - i thought that the 8% was a kinda standard rate the court was allowed to apply and was the rate no matter what the base rate was! who knows - i am totally perplexed!

karenann76

I wouldn't question them too much!!!!