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Rbs.. snowballing charges

Hi all

Last night I spent some time looking through the last 6 year's statements and was shocked to total up the amount I have paid in charges. Not one month has passed when I haven't paid in excess of £25 interest for usage of my £2,000 student overdraft (now current account) plus £6 arranged overdraft fees and £6-£12 unarranged fees. I'm total it's in excess of £6,000. This is really disheartening given that my overdraft is only £2,000. Morally I find this wrong!!

I spoke to the bank who advised this was part of their terms and conditions and offered no financial advice to help me out of my struggles. My situation is I am continually I'm my overdraft every month and have recently been advised the interest rates are doubling with effect from April. How can I get myself out of this? I found the bank very unhelpful. 

I also have unpaid fees also but where would I stand in terms of requesting refunds?

Any advice would be welcomed. 

Replies

  • dunstonhdunstonh Forumite
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    I also have unpaid fees also but where would I stand in terms of requesting refunds?

    Are you in current financial hardship? e.g. debts going unpaid, over your limits immediately after payday, unable to spend on priority household items?

    Does your spending habit show a consumer lifestyle? (latest mobile phones, high contract, sky tv, shopping at next or similar).

    This is really disheartening given that my overdraft is only £2,000. Morally I find this wrong!!

    It is not morally wrong at all.  Overdraft debt is short term emergency debt and priced as such.   You have used a short term facility for 6 or more years.   The cost reflects the timescale.  

     I found the bank very unhelpful. 

    Did you give them any reason to be helpful? (such as being in current financial hardship and not spending on consumer items)

    It really boils down to your situation and whether it is one through genuine hardship or overspending beyond your means. 

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ThrugelmirThrugelmir Forumite
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    London907 said:
    My situation is I am continually I'm my overdraft every month and have recently been advised the interest rates are doubling with effect from April. How can I get myself out of this? 
    Convert the debt to a loan.
    Pay a visit to the Debt Free Wannabe board. Get to grips with your budget.
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