Was talked into getting an RBS loan which I didn't ask for

JayneEire

Hi guys,

I was just wanting some advice.

Around 7 years ago I went into the Royal Bank of Scotland to pay some money into my account. That is all I went in for, but the teller told me that a note had come up on my account and I should go and talk to one of her colleagues.

I was then taken to a room and told that I was eligible for a loan. At the time I had an overdraft with RBS from my student days, as well as being at my limit on two credit cards. They told me that taking a loan out with them was a great idea as it would mean I could pay off my overdraft and two credit cards and only have to pay one monthly sum.

They made it sound like it was the best thing to do, so I went along with it. But, I was already trapped in the debt spiral and on a low pay. Taking out that loan made things worse as when I became broke again, I ended up maxing out my credit cards again to pay for food/bills etc. So then I had to pay back the loan AND credit card debt.

I was paying back RBS monthly for around a year, but when I became unemployed, I missed a payment and they shut down my entire current account I'd had since I was a child.

Now, I'm aware that the debts are my own fault and I never should have agreed to the loan. But I feel like this way of getting me to sign up to a loan was pretty unethical. Is there anyone who I could complain to? Would there even be a point after all these years?

I still have my debt with them, and although I have managed not to acquire any more debts in the last few years, I'm still on a very low wage, so can't pay it off just yet. I'm not expecting the loan to be written off by them. I guess I'm just older now and im looking back at the way banks/credit card companies used to operate pre-recession, and feel upset at the ways they'd try to manipulate vulnerable people.

Thanks for reading

Thrugelmir

JayneEire wrote: »

At the time I had an overdraft with RBS from my student days, as well as being at my limit on two credit cards.

Blaming RBS is pointless for what was the inenvitable outcome. Given your financial position.

JayneEire

Thanks for your response.

I just think it seems wrong to talk someone into getting a loan which they hadn't asked for.

stator

Thrugelmir wrote: »

Blaming RBS is pointless for what was the inenvitable outcome. Given your financial position.

Not necessarily. If he didn't have the loan, he may have hit 'rock bottom' sooner and had to go onto a DMP or similar and got his affairs in order. If he used the loan to pay off the CC then the likelihood of using the CC again is high. Really any debt consolidation loan should be accompanied by mandatory closing of the accounts that are being consolidated.

I don't know if you have any grounds for complaint, but you can always try. Write a letter to RBS in the first point.

JayneEire

Thanks for your input Stator. Not sure I really have any grounds to complain either. But maybe sending a letter is worth a try. If anything they should maybe change the way they go about getting such loans - but perhaps the recession has caused them to be more cautious anyway.

Armorica

The loan sounds like it was ethical if it was at a lower interest rate than the overdraft and credit cards.

If you then chose not to use the loan to pay back your cards, or to create new debt using the cards, that's not really RBS's fault. Were either of the credit cards with RBS? (In particular did they ensure that a credit card with them was actually paid off with the loan / did they lower your credit limits)

JayneEire

No the credit cards were with other companies.

I realise the debts are my fault. My biggest annoyance is just how they went about it. I only went in to deposit money, and the next minute I'm being talked into getting a loan. I was a bit naive at the time, and really it just made the situation worse.

Well at least I've learned from the situation, and haven't borrowed any more money since.

thebritishbloke

JayneEire wrote: »

No the credit cards were with other companies.

I realise the debts are my fault. My biggest annoyance is just how they went about it. I only went in to deposit money, and the next minute I'm being talked into getting a loan. I was a bit naive at the time, and really it just made the situation worse.

Well at least I've learned from the situation, and haven't borrowed any more money since.

They're sales people, they're there to make the bank money, they're not your friends.

You could have said "No". You didn't say no. You took the money, and you spent it. There's nothing unethical going on here, don't waste your time trying to get compensation etc.

Armorica

To be fair, it was a loan that sounds like it was in your best interests (again if the interest rates were lower than those on the credit cards you were paying). The loan didn't make the situation worse - your spending on credit cards did. (Though I suppose you could argue that you had space on your credit cards again)

I know it's not the answer you want to hear. But there is still a balance of responsibility between the customer and the bank. Unless there is something you've missed out, it doesn't really feel like misselling.

PeacefulWaters

JayneEire wrote: »

No the credit cards were with other companies.

I realise the debts are my fault. My biggest annoyance is just how they went about it. I only went in to deposit money, and the next minute I'm being talked into getting a loan. I was a bit naive at the time, and really it just made the situation worse.

Well at least I've learned from the situation, and haven't borrowed any more money since.

Well, if they had done nothing you may have been posting in here "bank failed to tell me I could have a loan to reduce my payments" and having a good whine about it.

Adult.
Signed form.
Reduced monthly payments.
Acted irresponsibly with cards where the debt had been cleared.
Blames bank.

If I've got the chain of events right you need to be looking in the mirror.

the ways they'd try to manipulate vulnerable people.

This really sticks in my throat. Vulnerable? Really? Or just another reckless adult who was stupid enough to spend money they didn't have on card debts that had previously been repaid by the bank.

You have no case. Your actions are the cause of the problem. Not the bank.

Your post is a pretty horrendous example of the abdication of personal responsibility that is rife in this country.

stator

Don't worry about these guys, they just love insulting people in debt