The only reason it could be is this transfer of funds to from my account to a savings account. i already have defaults on my credit report so im screwed really? Can they place a default on my file because of this? I am so confused!

Hi...please bare with me i'm new to all this...didn't realise how many ppl were in debt in britain !! Ok I have been with rbs for atleast 10 years if not more. I had a student current account with an o/draft of £1400. I was due to finish uni this year but dropped out last year etc I did go into RBS and tell them but the woman said my account would change over automatically so i never thought any more of this. I now work full time and have money paid into my account every month. I have direct debits and bill paid out of my account every month and definately have not gone over my overdraft in the past year. I had just recently (literally days before) had a direct access savings account set up and had advised when setting up the account to take £160 out each month to save on the 1st of every month. As the account wasn't confirmed until this time or perhaps a day or to after i did not think the payment would come out. After paying my rent, bills etc I did not really have much money left in there...maybe about £100. on 3/3/10 i went to buy some food before work and paid by card but my card was refused. So i went to the cash machine and it said i had nil. I checked my online banking and basically the £160 had tried to come out of my account. I waitied until the next day and tried to draw out some cash (4/3/10). The machine then swallowed my card!!!! I phoned my local branch and they said there were no problems with the account and they would send me a new card. 5 mins later i received a call from a lady at the branch (possibly a manager) and she said that there were inconsistencies on my account and that rbs would send me a letter detailing this and i could get in touch, sort it out and have my card back. I couldn't wait so the next day 5/3/10 i phoned back....after been thrown from one person to the next i finally got a number for the account closures team....they said my account was to be closed and they could not discuss the matter with me. no one explained what was going on. The £120 i had left over from my wages was then taking off me leaving me with a balance owed to them of £1280. There was nothing i could do with them until i received this letter. I received a letter saying my account was closed due to insufficient funds in my account and i would have to go elsewhere for banking etc. I do not understand at all!!!!!!!!!!!1 my account is now closed. I am waiting to open a new account with someone else. I have not made any payments to the account as i do not have a card to pay to their 'online repayments service'.... today i received a letter saying that...."formal notice of intention to file a default and to take action to recover the debt" I dont understand how i can get a default for this as i have not defaulted as such....i can pay back in monthly installments but not fully... Sorry for the essay...i am so confused....HELP!!!!!!!!!!!!!!