Can RBS do this?

TangledMemories_2

Hello All

I just wanted a little bit of advice if poss. I went into RBS today to change details of standing orders and a direct debit. I have a loan with them which is currently paid out of mine and my partner's joint account. Because of the way they have treated us (deferring £135 without authorisation and charging us £76 for the privilege) we are changing banks. I was told I could only change the standing orders and not the direct debit details as the loan was set up in branch.:mad:

I contested this by saying I wasn't going to keep a joint account open just to keep them happy and that I could've come in off the street and applied for that loan. They still said I wasn't allowed to change my bank details.

Surely, they cannot dictate to me where they get the payment for the loan from as long as they get it?!

:mad:

poppy_f1

im not sure, however i had a lloyds loan a few years back and when i tried to change bank accounts they said i had to pay the loan from a lloyds tsb account otherwise they couldnt take the payments
but i called their bluff and closed the account and waited for them to realise and chase me for bank details which they did and accepted my new bank details

TangledMemories_2

thanks for your reply!

I've just called their bluff and cancelled the direct debit. But I've also just set up a standing order using the account number and sort code and reference used before. So, they'll still be getting their money.

I'll be so glad when I can finally tell them where to stick their accounts!

iceicebaby

It may be the case that you could have been offered a preferential loan rate as you also had a bank account with them and so have to then pay the payments from your bank account with them.

Juat a thought!

tom188

For many loans it is a condition of accepting the loan that you have a current account with the loan provider and pay the loan from this account. This is the case with NatWest, and as part of RBS is quite likely to be the same with RBS retail as well.

You are quite likely to have breached the terms of your loan agreement by doing so, and should have checked your loan terms and conditions beforehand

So to answer your question, yes RBS is perfectly entitled to dictate where the payment to the loan is made from.