Natwest loans and cancelling the DD's

[Mochamoo]

Today I have seen this from Fuzzybrain, ScaredCarer and myself.


On the phone today Natwest point blank refused to cancel the Direct debit they told me I had two options I could pay off the loan now or keep the Gold account. They would not even let me go to a basic account and keep the loan....

Ame said this on another thread "In the natwest terms and conditions they have a clause ''"If required by the Bank the Customer will open and maintain a Current Account with the Bank" theres no requirement to pay from that account, whatever they tell you."

Where do I stand what can we do?

[natweststaffmember]

Re: Natwest loans and cancelling the DD's

The advantage Gold malarky is a load of crap to be honest since it has two threats: 1) You keep the £12.95 and it worsens your situation because you gotta discount which hardly screams out at you when you took it out.
2) the classic Advantage Gold missell: because you had the advantage of the account then you have to keep it even though it is worsening your situation. Utter rubbish.

There was something about paying the loan from another account. The question is whether it is possible.
The answer is oh yes indeedy. I espoused the theory on another site whilst still working for the bank. Since being walked to the door, so to speak, I have actually tried this for real using £1 as a marker.
You need account number and sort code of the loan and in the narrative you need to add the letters "PR" which stands for part repayment. It did take about 5 working days or a week and I did think it had failed on my first tester on my own account. It works and it will always work.

[Mochamoo]

Re: Natwest loans and cancelling the DD's

Your using big words again lol just had to look that word up again(god I feel thick)

But how do I get them to cancel the DD they point blank wont do it?

[WendyB]

Re: Natwest loans and cancelling the DD's

Can't you cancel it yourself using online banking?

[Amethyst]

Re: Natwest loans and cancelling the DD's

just stop using the account let them bounce it against themselves and charge themselves. but before they do that pay the loan by bill payment/SO or over the phone before hand. Nattie texted a solution yesterday, not sure if he has posted it yet? that being you need to add PR infront of the reference in order to pay from an external account. Am sure he'll confirm that later.

now I do think these terms need looking at as their T&Cs only state that you should have and maintain a current account with the bank - there is no requirement in the t&c's that the loan MUST be paid from that account and I think we should take it to the OFT, and will also have a look at the oft guidance and bcobs from the FSA.

[fuzzybrain]

Re: Natwest loans and cancelling the DD's

I tried and failed with Natwest to get my DD cancelled. I tried calling the lending dept/colelctions/customers service and going into the branch directly and no one would cancel the DD. I tried cancellign on line but that didn't work either.

In the end I gave up and let payplan deal with it. Eventually they have accepted payments from Payplan and have stopped trying to take it from the bank account.

Once the bank claim situation has been sorted, i'll order all the statments and hit them for a refund. It will make a wonderful reading in the defence that they refused to stop the DD and then continually charged me, even tho they were aware of the situation and that them charging me was putting me further in debt

[Amethyst]

Re: Natwest loans and cancelling the DD's

It is ridiculous behaviour from natwest. I have put a thread in VIP and written to brian hartzer to try find out what the actual position is and if it is policy or just customer services and lending team being awkward.

[natweststaffmember]

Re: Natwest loans and cancelling the DD's

It is ridiculous behaviour from natwest. I have put a thread in VIP and written to brian hartzer to try find out what the actual position is and if it is policy or just customer services and lending team being awkward.

It is part of the loan agreement, the question is whether it is a legally enforceable term. The way I see it is that if I cancel the DD and the account is up to date with no arrears owing then I would argue that they have got the money so there is no arrears and give me my money back.
Furthermore, from next month the charge will be £5 so stuff them and pay it as suggested earlier by me on the thread leaving at least a good 5 clear working days for the payment. I have tried and tested the method though not the letting it bounce and reclaim based on no arrears.

[Mochamoo]

Re: Natwest loans and cancelling the DD's

OK I've been online and managed to cancel the DD, I've set up a standing order from my new account (standing order cause I can change and cancel easily -before anyone tells me off lol - and I dont fancy fighting with Natwest everymonth just to pay it)

The payment is on the first so based on what you are saying Natts should I make it 5 days before then???

[Amethyst]

Re: Natwest loans and cancelling the DD's

It is part of the loan agreement

go on then, show me where

[natweststaffmember]

Re: Natwest loans and cancelling the DD's

go on then, show me where

Has mocha posted it all up with terms and conditions??(I'll have a look if she has). It will be about servicing account or summit like that.

Mocha, for me it was a 1 week before it hit the account on my tester. Remember the narrative is PR, otherwise it will probably be sent back

[Amethyst]

Re: Natwest loans and cancelling the DD's

have a look http://www.legalbeagles.info/forums/...ad.php?t=19165

only bits I can find (looking a peeps CCA's etc as the terms aren't online and the customer service peeps have no clue)

So re Natwest

on website key summary box thing

Repayment information Payment by direct debit only on a monthly basis. First payment due within 6 weeks of drawdown. Payment holidays not permitted. Deferral of payments at start of loan not permitted.

and on the actual CCA

8: if required by the bank the customer will open and maintain a current account with the bank

[natweststaffmember]

Re: Natwest loans and cancelling the DD's

it doesn't state that you have to have a natwest account to service the loan but the loan forms signed do state the account where the loan payments are to be taken. Therefore, the gullible banker :o swallowed the line Hook, Line and Sinker :o whilst working there.(might be worth a stuart email ).
This one is for Mocha under additional terms:
"7. Any payments you make are allocated as follows: First to pay off any arrears, then to pay off any costs, expenses and charges due and finally to reduce the amount owed on the loan account"

[Mochamoo]

Re: Natwest loans and cancelling the DD's

This one is for Mocha under additional terms:
"7. Any payments you make are allocated as follows: First to pay off any arrears, then to pay off any costs, expenses and charges due and finally to reduce the amount owed on the loan account"

But I don't have arrears on the loan (I have arrears for everything else) I've been really careful with it.

So are you saying i need to pay more each month if not by DD so it covers what ever they are planning on charging me?

Just found this else where

Natwest loan - help The story: I have just moved all my banking from NatWest to First Direct, including my Direct Debits. One of these was for a loan I have with NatWest which is for £200ish a month. It comes out on the 27th of each month, which is also the day I get paid. Yesterday was the first day that my Direct Debits were supposed to come out of my First Direct account, and the NatWest one didn't go. I rang First Direct and asked by it hadn't been paid, and they said NatWest hadn't asked for it. I asked NatWest why they hadn't asked for it, and they told me that they will only accept payments if they come from a NatWest account. They told me this was in my terms and conditions. I said fine, I would set up a standing order from my First Direct Account to my NatWest account. A standing order takes three days to go through, so I asked if I could have my payment date moved back three days. NatWest said no, they could only move it forward, which would mean making an extra payment this month, which I can't afford. I asked First Direct if I could move my loan to them, but they said I would need to be banking with them for three months before it could be approved. I already have the maximum overdraft of £500 so I couldn't extend it either, and even if I could have I don't want to get in more debt for nothing.

So, in summary, my options were:
a) Pay the extra payment using the money I had saved for my holiday in June
b) Refuse to pay the extra payment and let them whack bank charges at me and squash my credit rating

I went with a) which I am not very happy about at all. Then I found the terms and conditions for my loan. Nowhere does it say that the loan must be repayed from a NatWest account. The only relevant clause is: "If required by the Bank the Customer will open and maintain a Current Account with the Bank". As I understand it, that means that I have to have an account with NatWest, which I do, not that I have to use it to make the payments.

I dont want to get in trouble with my loan its the one bloody thing im not in trouble with yet

[Mochamoo]

Re: Natwest loans and cancelling the DD's

I am going to send this tomorrow, does it need anymore adding to it?

RE: Loan Account Number xxxxxxxxx

Dear Sir / Madam

As I have made your organization aware, I am currently experiencing severe financial hardship. This is primarily due to excessive charges from the Natwest on my current account. These excessive charges have now forced me to open a bank account with a different bank so that I can pay my bills and buy food.

With this in mind I am doing everything within my power to maintain regular payments to my creditors, including my Natwest personal loan. In order to do this I have made a request to transfer my Direct Debit over to my new bank account. However I have now been informed that this is not be possible and that you will only accept payment from a premium Natwest bank account.

Your customer services team have not allowed me to change my payment options and have informed me that the terms and conditions of my Natwest personal loan account clearly state that I must maintain a NatWest premium bank account and only service my loan by making direct debit payments from this account. I was shocked to hear this and I have taken the time today to go though my Natwest Personal loan terms and conditions in great detail and to my surprise, nowhere does it state that I must make my monthly payments by direct debit and nowhere does it state that I can only make repayments through a Natwest Account.

It is, therefore, clear to me that your customer services team have misinformed me regarding this matter and I am keen to resolve this matter within the terms and conditions of my loan agreement. In order to do this I have now cancelled the direct debit for payment of this loan from my Natwest bank account and set up a new standing order from my new (non-Natwest) bank account.

If you insist on imposing the unfair term that your staff have been informed of then I will have no choice but to make an official complaint to the OFT and Ombudsman as this term does not tally with the terms and conditions supplied to me for this account. Should I not be allowed to make standing order payments from my new account then I will also no longer be able to make payments to the loan as the excessive bank charges you have imposed on my Natwest current account have forced me into such a level of spiralling debt that any money I put in this account will instantly be swallowed by your own bank charges.

As I have stated in numerous communications with your organisation I am simply trying to resolve an increasing level of spiralling debt that has been created by your organisation and has impacted numerous creditors, had your organisation chosen to help me when I initially requested a minor, temporary increase to my overdraft I would not have received these bank charges, nor would I have received additional charged from other creditors and I would not have been forced to open up a bank account with another organisation. In other words, your own organisation has forced me into this situation and therefore I do not think it unreasonable for me to request that you work with me to resolve this, particularly when I am offering to continue to make regular monthly payments.

Yours Sincerely,