Hi I don't know if I can link this to my other thread in Santander but I'm not sure where best to post it.

Basically OH closed bank account with £500 OD facility - Santander agreed and told us interest and charges would be frozen.

He started a new business and has been waiting on first invoices which have been paid this month. Kept in contact with Santander and been told each time it's fine and note would be put on the system.

He tried to pay but was refused to pay over the phone and would have to go in branch due to the account being closed.

Went to branch at earliest opportunity (a week or so later) and was refused to pay in full by card and had to pay by cash.

Made half payment due to ATM limit and agreed to return today to draw out remaining cash and clear balance. Again told fine no problem.

A couple of letters in between to say account still needs paying and interest and fees remains frozen but when he's phoned he's been told everything fine and notes put on system. No default notice or anything.

Checked Experian and found account has been recorded as "Default or Delinquent" and score down to very poor.

Contacted Santander to find out why and why default notice wasn't sent and they've said it's not a default it's a delinquency so they didn't have to send notice and it's an accurate reflection so it remains.

Credit file can't seem to decide if it's a default or a delinquency.

We're now really confused what it is and if there's anything we can do? Seems as though a delinquency is a default without having to give any notice or allow us chance to bring the account up to date?

Check My File's definition of delinquency v default:

Delinquency:

Credit slang for a customer not paying on time. A delinquent account is one that is, or has been, in arrears and will subsequently have a negative impact on your credit rating. This will be displayed in the payment history of your credit report.

Delinquency will continue to have an adverse effect on your credit rating even if the the account is brought up to date, and will remain on your credit report for six years from the date of account closure.

Default:

Defaults can arise in two ways.

First, for regulated credit agreements, a default may be the result of failing to respond to a Notice of Default issued under section 87 the Consumer Credit Act 1974.

Second, for credit agreements that are not regulated under the act, (e.g. mortgages) a default on a credit file simply reflects the fact that the lender considers the relationship between itself and a borrower to have broken down.

In the first case, the Notice of Default gives the customer 14 days to remedy the breach of the agreement specified in it - typically payments in arrears. A default notice should be the final letter in the ‘cycle’ before taking action. The default date, as reported to the credit reference agencies is the date specified in the Default Notice, which the customer was told to remedy the breach by. The account goes into default once the breach is not remedied in the specified time.

The lender must allow 14 days from service before taking subsequent court action. Most courts expect 19 days overall due to post delays, weekends and public holidays. Upon default, you cease being a customer, but become a debtor.

In the case of non-regulated credit agreements, each lender defines under what circumstances it considers that an account is in default in the standard terms and conditions provided when the accout was opened. Non-regulated credit agreement lenders are required to give the customer 28 days to remedy a breach before the account is recorded as being in default at a credit reference agency.

Whichever way a default occurs, upon default, you cease being a customer, and as far as a lender is concerned, you become a debtor.

It follows that defaulted accounts are regarded as serious arrears and will remain on your credit report for six years from the date of default, after which they will automatically be removed.

Would really appreciate any help you can give! Thanks

Ok Experian have said definitely not a default and is a delinquent and that we're far from a default.

Santander have said it's the same as a late payment.

Yet late payments have reduced credit score slightly and stop having an effect after 6 months - this has reduced it by 300 points and will continue to effect of 6 years!

I had an account in a deliquent status and arrangement to pay. Creditors tend to pay no notice after three years if you have kept all your other accounts in order. My delinquent account dropped off after 6 years but it still did not impact me getting a credit card with Capital 1 with a two grand limit.

Thanks OD

Unfortunately we have a re-mortgage appointment coming up that we were hoping to get the money to pay off a loan that costs us £176/month that's held in my mum and dads name.

Failing that our introductory offer ends in November and going onto the SVR will cost us around £150/month extra.

He also needs to open a business account ASAP.

Three years of an extra £150/month is a lot of money and something we'll really struggle to be able to do.

We closed the account to freeze the fees and interest as it was getting unmanageable. The implications of the delinquency on our mortgage is far worse

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

29th May - £521 but status up to date

26th June - £521 2 months late payments (skipped month 1?)

24th July - £521 3 months late payments

August (4th Sept)- £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?