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

p.s - i didn't have ppi on this loan - i only ever had ppi once on our very first loan of £10,000 around 13 years ago - any subsequent consolodation loans we took out i always refused the ppi

x

bengalknights

PPI misselling refund or there just being generous and may have found that there a problem they dont want to say anything about.

olivia84

thanks - i haven't a clue! i definately didn't have PPI on the loan so who knows!

Emmzi

i really wouldn't spend it until you do know. sounds like a !!!! up to me!

Paul_the_Painter

For a start there are 39 months between Sept 2008 and Dec 2011. If you have not missed a payment of £600/month, you've paid £23,400 from Sept 2008 till Dec 2011. Check the dates of when the solicitor wrote to you (carefully!), Also have her request the full breakdown of the accounts, as a couple of minutes with a calculater suggests that they have been charging interest at the "normal" rate for a personal loan, and that you paid off the loan some months ago.

I think what might have happened is that the payments serviced the account, the interest was never frozen, and last year when you were still paying they diverted the oney into your current account. They then did a full check on the loan, realised they should not have been charging interest, and rebated the £4000 to your loan account. There is a possibility if that is the case that you also have a £4000 credit balance on the loan account, as well as the £1600 in the current account.

Otherwise the maths doesn't make a lot of sense to me, unless your dates are out by a year at some point!

olivia84

thanks for the replies everyone! we went into the branch on saturday and they couldn't tell us anything at all! they are limited to what they can do though. thanks paul - we have definately never missed a £600 payment since sep 2008 but the bank were supposedly charging their 8% court applied interest until may last year so i think this is where is gets complicated! any time i ever asked for a balance from the solicitor they said they couldn't give me an accurate one as this 8% interest was calculated daily! its a head wrecker and a half!

we'll just have to bide our time and wait till the solicitor gets back to us but it could take weeks and even then who knows if i'll understand it all!

it would be horrible though if they then come back to us and say that the loan isn't really finished and there's been an ar*e up somewhere!

xx