Compulsory account maintenance charge

LVL_CHG_2

I've had a current account with a Spanish bank called BBVA for over 5 years now. The current account was opened in conjunction with a secured loan which I took out to fund a pilot training course I took.

I have another 5 years or so to finish my payments. I pay into my BBVA current account at which point they then take the money.

I do not use the current account for any other reason and this is the only transaction each month.

The account has always been free however a letter dropped through the post today. From 1st January 2016 I will be charged £8 a month for an apparant account maintenance charge!

They tell me that it is not possible for me to make my loan repayments direct from my day to day current account (Natwest) and it must be payed from a BBVA current account.

So from what I can see I have absolutely no choice whatsoever!

Are they able to just impose a so called charge? Are they correct in saying that it MUST be paid from a current account with them as well?

Archi_Bald

All depends on the T&Cs you signed. What do they say?

Kernel_Sanders

What were the T&Cs for both products you took out? They would have to allow for both of the measures you state. If not, I would be inclined to just fund the account with the usual repayment amount, then let them take me to court when the bank-engineered 'arrears' have built up.

Archi_Bald

Kernel_Sanders wrote: »

then let them take me to court when the bank-engineered 'arrears' have built up.

sounds like inexpensive fun (not!) to plan for a court hearing in Spain

LVL_CHG_2

I've gone through the Ts & Cs and my loan agreement and there is nothing in regards to charges for the current account.

In fact there is nothing at all in regards to the current account. It is all to do with the loan inself, the security on it and charges in relation to early repayments.

I'm going to dig my feet in a little further and find out what happens!

jonesMUFCforever

Is the debt here in UK or in Spain?

How much is outstanding?

Would it be worth your while to see if you could get a new loan to pay them off.

LVL_CHG_2

The debt is here in the U.K.

They have a couple of branches in London.

I have £30k remaining over 5 years. It tracks the libor base rate plus 2%.