Great 'Work in a bank? What should we know' Hunt

kirstymccr

convenience101 wrote: »

IF YOU ARE AN RBS CUSTOMER, PLEASE READ THIS!

Some of you will be more surprised than others to read this! When your branch cold calls you and 'invites' you in for a "Customer Service Review", beware! This is not intended in any way to benefit you, but rather the bank, who will attempt to sell you RBS products. Let me talk you through the process.

1) The person who has called you has selected your name from a HUGE printout of branch customers, and has quickly checked from your account transactions and balances that you could be sold a loan, mortgage, credit card, etc. When they speak to you on the phone the will suggest that the CSR would be beneficial to you by saving you money. Sounds tempting, doesn't it? An appointment is arranged for you with one of our Customer Advisors.

2) Before you arrive for your appointment, the CA trawls your accounts for the past year. We can see details of all your switch transactions (eg how much you spent in Ann Summers last month...) and direct debits, salaries paid etc. It is very easy to tell if you have loans, mortgages, credit cards elsewhere. The CA will then work out what they will try to sell you.

3) At your CSR appointment you will be asked to give details of all your outgoings and debts owed, including other loans and store cards, just to firm up the info the bank has on you. They will then try an tempt you into buying RBS products. The CAs earn commission on what they sell to you and are targeted using a points system. At the top of the points tree are mortgages and loans. At the very bottom are instant access savings account. Guess what you'll be pressurised to buy?

Bearing in mind that, with the occassional exception of mortgages, just about all financial products are better sourced away from your high street, there is no need for you to enter the CSR process. You can ensure this by writing to your branch and insisting that you are taken off the email/mail and telephone contact lists.

This approach has made RBS a lot of money, so much so that HBoS started doing something similar not so long ago. I would ask you not to take out your rigtheous indignation on bank staff. The CAs need the commission as, like all branch employees, they get paid a pittance. Most of the money made seems to go towards the astronomical salaries of Sir Fred Goodwin and the Bank's numerous directors.

I have been asked in twice this year for a review, im told its because i have a large overdraft (£1600) they like to keep a check on things, i kinda feel pressured to attend as i dont want them to suddenly pull my overdraft so im due to go next week. Im always in my o/d does this go against me?

The last time they tried to get me to convert my o/d to a loan but then they would withdraw the o/d option. I dont want to do this im planning to reduce the o/d gradually over next 6 months

Kavanne

kirstymccr wrote: »

I have been asked in twice this year for a review, im told its because i have a large overdraft (£1600) they like to keep a check on things, i kinda feel pressured to attend as i dont want them to suddenly pull my overdraft so im due to go next week. Im always in my o/d does this go against me?

The last time they tried to get me to convert my o/d to a loan but then they would withdraw the o/d option. I dont want to do this im planning to reduce the o/d gradually over next 6 months

You WOULD lose your OD facility but they usually will give you £150-200 extra on top of your existing facility in the loan when they remove the OD facility to compensate.

See if your bank will let you make lump sum payments on a loan for no penalty, if so, a loan MAY be at a lower APR than your OD currently is. It's worth looking into and you can always say no. And it would give you fixed repayments so instead of 'planning to gradually reduce your overdraft' you are committed and WILL reduce it.

kirstymccr

Thanks
I suppose im just worried that if i take the loan then it will look like i cant control my finances, i assumed that reducing it steadily showed more control. Im also worried about closing the overdraft and not being able to get one. Do you know if being in o/d alot affects your internal score with RBS?

ShelfStacker_3

Taking a loan to pay off the OD shows that you're taking control of your finances...

Really, avoiding an overdraft is the best thing to do. Only get one in dire circumstances.

Paul_Herring

ShelfStacker wrote: »

Really, avoiding an overdraft is the best thing to do. Only get one in dire circumstances.

I disagree. Replace "getting one" with "actually using one" and I'd be more inclined to agree.

ShelfStacker_3

Paul_Herring wrote: »

I disagree. Replace "getting one" with "actually using one" and I'd be more inclined to agree.

You are totally right, my mistake. Not saying what I mean etc Would make me something of a hypocrite considering i just got approved for a £200 one

little_bear_3

Kavanne wrote: »

You WOULD lose your OD facility but they usually will give you £150-200 extra on top of your existing facility in the loan when they remove the OD facility to compensate.

See if your bank will let you make lump sum payments on a loan for no penalty, if so, a loan MAY be at a lower APR than your OD currently is. It's worth looking into and you can always say no. And it would give you fixed repayments so instead of 'planning to gradually reduce your overdraft' you are committed and WILL reduce it.

Sorry but you are wrong there - there is no guarantee she will lose her overdraft unless the apllication is classed as a risk when the credit score is done and has to have conditions like overdraft removal from head office. In normal cases it is suggested the overdraft facility is reduced down to the interest free amount so it is there purely as an emergency as common sense tells you that if you are going to refinance your large overdraft you shouldn't need it so high after you have done this but it is not always a condition it will be removed. If a high facility is left it is likely to be run up again pretty quickly defeating the point of the refinace loan in the first place.

Kavanne

little_bear wrote: »

Sorry but you are wrong there - there is no guarantee she will lose her overdraft unless the apllication is classed as a risk when the credit score is done and has to have conditions like overdraft removal from head office. In normal cases it is suggested the overdraft facility is reduced down to the interest free amount so it is there purely as an emergency as common sense tells you that if you are going to refinance your large overdraft you shouldn't need it so high after you have done this but it is not always a condition it will be removed. If a high facility is left it is likely to be run up again pretty quickly defeating the point of the refinace loan in the first place.

Sorry I was trying to keep things simple!! Having no OD and one of £100 isn't really much different.

Mark7799

It is if you miscalculate and end up £60 overdrawn!

Kavanne

Mark7799 wrote: »

It is if you miscalculate and end up £60 overdrawn!

tbh if you leave with a £100 overdraft most people will see this as their available balance and will use it as if it is their own cash.

in my limited experience.