RBS - be careful what you tell them (or when)!

LadyT_4

I recently became bankrupt (voluntarily, through the Low Income Low Asset legislation in Scotland) and am in the middle of the whole paperwork thing. My official bankruptcy date was 14th May and I've done my initial interview and I&E, and am about to send off my accounts etc (I'm self-employed) to the Accountant in Bankruptcy.

I'd read a lot about bank accounts being temporarily frozen when the bank hears about bankruptcy, so I phoned the AIB to ask if this was something that definitely happened. I was concerned because my tax credits and housing benefit go into my personal account with RBS, and all my bills, including my rent, come out of it, most as direct debits or standing orders. The AIB said that RBS weren't known for freezing accounts, but it was best to check with them.

So today I phoned by business manager at the bank and oh my god, I am so wishing I hadn't. I explained the situation to her and she wasn't sure what the protocol was, so she called their services department and got back to me. To inform me that my personal and business accounts had been temporarily frozen until they get a letter from the AIB saying that they can release my funds.

So, I phoned my case handler person at AIB and she told me that they didn't do letters or faxes to have accounts unfrozen any more as they didn't have the resources to do it, but she could give a verbal confirmation.

Back on the phone to my business manager. I explained this to her and gave her the AIB phone number, so she phoned my case handler. This story involves a lot of back-and-forth, in case you hadn't noticed. Business manager phoned me back to tell me that RBS had made a mistake, and hadn't updated their policy in line with the new bankruptcy legislation, and they shouldn't have frozen any bank account with less than £2k in it (my business account is pretty much empty, and my personal account has about £650 in it, for rent and bills).

So...business manager is going to phone the services department in the morning to try and get my accounts unfrozen. There's no guarantee that this will actually work as RBS don't seem to see fit to give a damn about the law and stuff like that. Until my accounts are unfrozen, I am unable to go to the dentist to get the holes in my teeth dealt with (only two fillings in 27 years, but damn, they are the most troublesome fillings ever...I miss solid food, stupid expensive dental treatment), won't be able to pay my rent, won't be able to pay my phone bill or put petrol in the car or EAT and have literally no money whatsoever to my name.

There I was feeling all chuffed with the new LILA legislation, and the fact that I didn't need to get a new bank account as I wasn't in debt to RBS, and how smoothly everything was going. Trust a bank to screw it up, eh?

I'm hoping for a favourable outcome tomorrow (I'd love not to have giant holes in my teeth and have already cancelled two dentist appointments due to lack of funds) but am absolutely terrified that this is going to take ages to sort out, leaving me in a pretty messy situation. Spent most of this evening crying and trying not to bang my head off the wall...I always thought I was a strong person before, but this whole experience is showing me otherwise.

So a word of warning - if you're with RBS, just wait until the AIB contact them about your bankruptcy. I assumed I was doing the right thing and pre-empting any problems, but it totally backfired.

maxmycardagain

NTKB ...............

december

Fingers crossed that this gets sorted out tomorrow LadyT. Hopefully as legislation seems to be on your side it should be sorted out sharpish. I wonder if a telephone call doesn't work and the case handler hasn;t the time to write a letter, would a quick fax be OK? I'm sorry I can't offer much help but have a *hug* anyway.

December

LadyT_4

Max - totally! The thing that busts my head is that I asked the AIB if talking to the bank was the right thing to do, and was told that it was. I was scared that they'd freeze my accounts at some time in the future when I wasn't prepared for it...maybe that would've been better!

december - believe it or not, the AIB won't even send faxes to have accounts unfrozen. They said they didn't ask the bank to freeze the account so can't fax or write to sort that out (they don't have the resources apparently...yeah right!), yet the bank can freeze an account without having to hear from them in the first place. Catch 22 or what! Thanks for the hugs. I'm crossing my fingers for tomorrow!

Merry_Gentry

Really hope it gets sorted out for you - what a pain in the butt....

maxmycardagain

some may have noticed ive a big gob, this BR thing has been murder, having to tell only those who need to know exactly the minimum....

why should i fill in details?

Tigerlily31

Lady T,

I really hope this gets sorted for you!! I feel your pain withe the teeth thing...I smashed my front tooth July last year and it took till November to finally get a proper bridged new tooth!!! If the law is on your side they are going to need to get this sorted :-) Of course it's never straight forward is it!!?? I can't offer any advice but big hugs and I hope tomorrow brings some good news.

Tigerlily x

josmidge

Hi

Dunno if it's the same for scotland but call the social security and ask for some money from the hardship fund Crisis loans are available to everybody regardless of wether you work or not. If you have no money and are really stuck they might be able to give you a bit untill the mess is resolved. If it's under £500 it shouldnt matter to your OR and social loans generally are not taken into BR. But who knows there seems to be different rules from different OR's. Seems that the law is open to enterpretation

Good luck with it all

Jo

LadyT_4

Merry Gentry - thanks I just got a tax rebate after being a good girl and filing my tax return early, got a couple of bills paid on time (which almost never happens) and stupidly thought "Money stuff is actually alright at the moment". Famous last words!

Max - I'm in total agreement. I'm always so scared of leaving something out or making a mistake and then ending up causing myself trouble that I tend to be way up-front about everything, just to stop problems before they happen. It seems BR does not work that way. I'm hanging on to my last nerve and it's becoming very frayed!

Tigerlily31 - Ouch! That sounds really painful. Glad you got it fixed in the end. Bridges are so expensive though, aren't they? My husband has one across his four front teeth (or rather NOT his 4 front teeth) and I remember him saying it would cost hundreds of pounds to replace it. Eek!

josmidge - Thanks for the suggestion. I hadn't even considered that! If things don't go well tomorrow I reckon I'll be getting in touch with my local social security office to see if they can help me with my rent.

Tigerlily31

Hi LadyT,

Yup was very apinful but all self-inflicted...a bit drunk and tried to pole dance around a lamp post ahem....That was a very bad plan but never mind all sorted thank god!!! I have a bridge that attaches to my other front tooth..Not brilliant but better than no tooth...It was soul destroying to lose my tooth but well, I stay sober and sane these days!! Was expensive but I'd rather pay than have no tooth....

I know you're low on cash but have you tried a temporary filling kit from Boots or such like? I've used them in the past and they have been very good even with a tooth that had a huge hole in it. Might be worth giving it a go?

Best of luck with it all and I'll check back later on today to see how you get on :-)

Eeek, what the hell am I doing on the boards at this time!!??

TL x

loulou88

oh i so feel for you i could swear but I might get thrown off here. Im going through the scottish sytems and it is just so busy now the AIB tell me it is all taking so long I'm just keeping quiet like max said tell em nothing unless they NEED to know.