RBS Loan Overpayment backfired :(

big_bang

Hey folks

I had approx £2200 remaining on a Personal Loan with RBS. Two days ago I made a payment to the account as I have done in the past leaving exactly £97 for the DD this month which would bring the balance to £0 as I didn't want to settle the loan and be charged the 58 days interest.

However, logging into my account I have just seen the balance has increased from £97 to £170 and a notice on the statement saying "Overpayment Interest Charge".

Basically it's damage limitation now and I need some advice from non RBS people!!! What is my best method in paying off this remaining £170 without incurring any more charges? If I was to pay the balance off today would I be charged another huge sum? Because if I leave the amount to be debited I'm again going to be charged more interest right?

ch3101

What you'll find is that they only let you pay so much that it leaves 2 months payments.

You might actually find that they have sent some of your money back, this may take 8 days or so.

Why are people so afraid of 58 days interest? In most cases it will be <£50 or some other arbitrary amount considering you're paying off thousands.

DCFC79

big_bang wrote: »

Basically it's damage limitation now and I need some advice from non RBS people!!!

Welcome to MSE

I like the part in bold, anyone can post whether they work for RBS or not.

StuC75

all over payments would carry the upto 58 days or so interest that most places charge when overpayments are made - so really thats just what theyve taken from what you overpaid (albeit in an roundabout way).. You thought you were avoiding such charge, but didnt..

CLAPTON

it would probably be best just to let the DDs run for the next two months