Hi just hoping for some advice please.

My OH has had a default recorded on his credit file by santander.

He closed his account in March with a £500 overdraft remaining. He started a new business and been in contact with them since updating them as he was waiting on first invoices being paid. He has been getting letters saying he needed to pay £520 as the account was still open but frozen so no interest or fees etc would be added but nothing else and each time he's called they've said it's fine and will put notes on the system - no-one has told him he would be getting a default or anything like that.

Anyway the invoices were paid this month and he called Santander to clear the balance but they said they could not accept payment since the account was closed he'd have to go in branch.

He went in branch yesterday which was the earliest he could due to work. They told him he would have to pay by cash. So he paid half (£260) and agreed to go back today to pay the remaining half. (This was due to ATM £300 withdrawal limit) The lady told him that was fine and she'd put a note on the account. Again no mention of default or anything.

He went on Experian last night to find that a default has been put on his account in the last week.

Is there anything we can do about this? We haven't had any default notices and done everything we could to update and each time been told over the phone that it's fine and the account is frozen.

He's called today and been told the account is delinquent so he'll have to speak to complaints.

Are there different rules for overdrafts ie do they not have to send default notices or anything?

Could it be that they couldn't send a default notice for the same reason they couldn't take payment by card and something to do with the account being closed/frozen?

We still have the remaining £250 to pay that we have to go back to branch and pay by cash again. Should we do this or wait until complaint outcome?

Thanks for your help x

OH has called Santander again to find out why a default notice wasn't sent - they are saying it's not a default it's a delinquency so they didn't have to send notice.

Credit file reads "default or delinquent" and has gone down to very poor.

Apparently delinquency stays on your credit file 6 years and will continue to have a negative impact even after settled just like defaults?

We're now confused what this is and what we can do about it? Seems like a default without rules or protection!

Hi salphy

They are really as bad as each other with the effect on your credit file

Delinquency

Loan delinquency is commonly used to describe a situation in which a loan borrower is late on a payment, such as student loans, mortgages, credit card account or automobile loans. There are consequences for loan delinquency, depending on the type of loan, the duration and the cause of the delinquency.

For example, assume a recent college graduate fails to make a payment on his student loans by two days. His loan remains in delinquent status until he either pays, defers or forebears his loan.

Default

On the other hand, a loan goes into default when a borrower fails to repay his loan as scheduled in the terms of the agreed promissory note he signed when he received the loan. Defaulting on a loan could adversely affect the loan borrower's credit rating, making it difficult for him to borrow money in the future. A loan borrower who default on his loans may have trouble obtaining a mortgage, purchasing homeowners insurance and getting approval to rent an apartment.

There is a time lapse that lenders and the ICO allow before a loan is officially placed in default status. For example, most federal student loans stay in delinquency and are not moved into default status until after the loan borrower has not made any payments on the loan for 270 days.

There are differences between Loans and credit card defaults to Current Account Overdrafts...should you fail to " Service " or deposit amounts to the facility( an arranged overdraft) you must be served with warnings first allowing you to propose action or intentions on what you intend to do to rectify the situation...these normally allow 21 days.

Should you fail to communicate with the bank and make no proposals then they can issue you with a The Demand/Termination Notice (Notice served under Sections 76(1) and 98(1) of the CCA1974) again this allows a further 28 days to rectify the position...of course failing to comply with this then the bank can mark your credit file.

Im not sure whether I would bother depositing further monies until you get conformation that they have failed to comply with due notice and the CCA1974 and will correct the adverse data.

Regards

Andy

Does this make a difference that the account was technically closed?

We were unable to access online banking and they refused payment via telephone banking.

They also refused card payment in branch and had to pay by cash which was why we couldn't pay in full.

Experian have confirmed the account is delinquent not defaulted.

Looking at the credit file more closely these are the late payments they have recorded:

May - £521 but status up to date

June - £521 2 months late payments (skipped month 1?)

July - £521 3 months late payments

August - £521 5 months late payments status default or delinquent but update dated 04/09/2016 (skipped month 4 and also a date in the future which we have made payment prior to)

Do I have a case based on this that it should still be 3 months late payment and delinquent status should be removed?