Two local authority pension schemes are suing current and former board members of RBS. The bank was bailed out by the taxpayer in October of last year when the Government was forced to take a 68% stake in the business to avert its collapse. A more recent package of support involving a further cash injection and use [...]

More: RBS shareholders to sue

Hello here is a question and it relates to the Government baling out banks and financial institutions with (my) taxpayers money.

The RBS claims that I owe them £9500 GBP due to my husband declaring bankruptcy back in 2006 due to ill health. As a joint holder of the account the bank now asks me to repay them, which i start to do, then along comes the Government and because the bank has declared my debt as a loss, gives money to the bank to cover the (money) loss that they have incurred as a result of my inability to repay my debt due to my husbands bankruptcy.

The net result appears to be that the bank has recovered the debt that I owed by way of the Goverment giving them the money.

Do I still owe the money now, after all the bank has now recovered the money.

So I feel that I should stop repaying the (loan) debt to the bank as they have already been paid the money for that debt by a benevolent benefactor, which surely must release me from repayment as they have now not made a loss at all.

According to british Law (English Law) recovery of a loss only occurs if a loss has been made, in this scenario no loss has been incurred by the bank for my supposedly outstanding debt.

Lets discuss this, I have also posted this under banking.

I would be tempted to seek legal advice.