Natwest gesture of goodwill

tony1212

Hi

Natwest have just sent me a gesture of ggodwill letter, containing that they will be paying my charges of £1973.00 back, it took all the time and letters as per this site. (Thank you money saving website) and court action.

However i have a question, are they entitled to pay this gesture of goodwill into my unsecured loan that is owed?

I believe this loan is a seperate case and irevelant to what they owe me, i took this loan due to them over charging me in the first place and intend paying it back as per instructed , once they pay me what they have unrightfully taken and kept for several years.

I have asked for a cheque for the amount , rather then them paying this straight into my account and taking it out for the loan.

Any information on if they can pay the loan off striaght away would be useful.

Regards

Stephen_Leak

If there is an outstanding debt with the bank or credit card company involved, which is not covered by a separate contract, they can and probably will offset any charges reclaimed against that debt.

Please read the Reclaim Bank Charges Help thread.

Twinkly

tony1212 wrote: »

Hi

Natwest have just sent me a gesture of ggodwill letter, containing that they will be paying my charges of £1973.00 back, it took all the time and letters as per this site. (Thank you money saving website) and court action.

However i have a question, are they entitled to pay this gesture of goodwill into my unsecured loan that is owed?

I believe this loan is a seperate case and irevelant to what they owe me, i took this loan due to them over charging me in the first place and intend paying it back as per instructed , once they pay me what they have unrightfully taken and kept for several years.

I have asked for a cheque for the amount , rather then them paying this straight into my account and taking it out for the loan.

Any information on if they can pay the loan off striaght away would be useful.

Regards

The banks have something called the Right Of Set Off when you owe them money, please here for more information:
Right Of Set Off

Certain conditions apply to retaining any money from your refund. One of which, and very importantly, is that the debt must be due and payable. Basically if the loan is in arrears then the bank have the right to offset the amount of arrears from the refund. If you are up to date with all agreed payments though then no, they cannot take it.

Circumstances vary and I'd advise to check with the Financial Ombudsman as to your exact position here.