Royal Bank of Scotland Threatening Letters

SMac1960

I have a RBS account with an overdraft limit of £600, I am about £500 into it. During these last difficult months I have not used the account but also I have not paid anything into it to reduce the overdraft amount.  I had to go down to England to look after my elderly parents for a few months.  I returned this weekend and found  that I had a pile of letters from the RBS, culminating in a letter which told me that, as I had not paid anything into to my account, and had not contacted them, they were entitled to revoke my overdraft and demand full payment.  They have demanded that I contact them, give full details of my employment status and earnings so that they can "assist me".  I paid money into the account yesterday but I suspect this will not be enough for them.  They were happy to grant me the overdraft over 15 years ago (when they sold me a dodgy pay per month Royalties account) but the last part of their letter said that if I didn't contact them and give them the information they require, my credit history would be compromised.  I barely slept last night and can't believe these vultures.  

[Deleted User]

They're not threatening letters.

They simply want their money back from the vultures that currently have it. 

Contact them and agree a repayment plan.

D3xt3r5L4b

Well they’re correct. They are allowed to
withdraw an overdraft at any time and demand immediate payment.

fwor

Rather than being internally driven, it's almost certainly in response to the FCA's efforts to cut down on Persistent Debt, which bank overdrafts are now being categorised as.

https://www.fca.org.uk/publications/policy-statements/ps19-16-high-credit-review-overdrafts

Thrugelmir

SMac1960 said:

  I barely slept last night and can't believe these vultures.  

Feed them and they'll go away. 

xlnc99

Thrugelmir said:

SMac1960 said:

  I barely slept last night and can't believe these vultures.  

Feed them and they'll go away. 

  

sourcrates

SMac1960 said:

  I barely slept last night and can't believe these vultures.  

Hi,

The situation is avoidable, simply agree a sum to pay into the account each month in order to clear it, no matter how small that payment may be, at least you will be reducing the debt, if you are struggling financially due to covid-19, tell them so, did you not realise you can have up to 3 seperate 3 month breaks from paying interest on your OD currently ? (unsure if this also applies in Scotland, but you can ask).

And in order to protect yourself from further financial woes, you should open a new basic bank account, with a new bank, with whom you have no debt, and use that for your everyday banking instead.

Treat the RBS account as just another non priority debt to service, in the long run, it will learn you to live within your means, as always living in your OD is not best practice, as you have discovered, that borrowing can be withdrawn at any time.