@santanderbankgb adding interest to account after it has gone to a dca

[golfillini2]

Hello All,

 

I have a unsecured loan with Santander that was passed to Moorcroft quite a while back.

 

I have found out recently that Santander is still adding interest to this account. I thought that once my account was passed to a dca then all interest is stopped.

 

Can osmeone enlighten me please

 

Regards

 

Golfillini

[dx100uk]

no .

 

tell us the story please

 

dx

[golfillini2]

It is a unsecured loan that was passed to moorcroft over 2 years ago. I have an informal arrangement with moorcroft and i pay an agreed monthly amount which i have not defaulted on.

 

Yesterday i received a yearly statement from santander which showed they have added a years worth of interest.

 

I was of the understanding interest had stopped being added once moorcroft took over the debt.

 

Can santander still add interst to my account and if so what can i do to stop them doing this.

 

It is very frustrating as the debt is not reducing, so what is the point of paying i might as well go bankrupt

[dx100uk]

nothing wrong there they are entitled to add interest its a loan

just like everyone else with loan debts has

 

now

.

does this debt show on your CRA and who is the OC please.

 

dx

[Mike_hawk]

nothing wrong there they are entitled to add interest its a loan

just like everyone else with loan debts has

 

now

.

does this debt show on your CRA and who is the OC please.

 

dx

 

Dx

 

That's not entirely accurate, if it's a standard Santander agreement and CCA regulated it would have been front loaded interest to term date.... balance can only reduce [subject to judgment].

 

Phil

[golfillini2]

I have had all interest stopped on my other accounts that i owe to creditors. I thought that once the account was passed to moorcroft then the interest is stopped.It does show on my cra and the original oc is santander.golfillini2

[Mike_hawk]

If Santander are providing annual statement of account I would suggest you refer the matter to them. Moorcroft are clearly not the legal assignee if Santander have retained CCA duty encumbent upon them.

 

Assuming this was a fixed term loan there can be no further application of interest except in the instance of post judgment [and assuming such a condition was drawn into the agreement]. Whilst there may be an implied right within agreement it would require judgment for any lawful future interest application post term.

 

Is the balance stated by Moorcroft rebated in or is it full term balance?

 

Is the statement from Santander showing correct credits transferred by Moorcroft?

 

Phil

[Mike_hawk]

Should have asked the obvious as well....... any charges or PPI on the account?

[golfillini2]

Hello PhilMoorcroft sent me a payment book sometime ago, so i presumed they now held the debt.I shall be writng to them to confirm who actually owns the debt.Santander does show all my payments from moorcroft. It shows full balance with the interest added on.No ppiRegardsGolfillini2

[Mike_hawk]

Moorcroft will be operating the account for collection only, probably not much point taking them to task.

 

Are you still servicing [partially] within the loan term or has this moved on to default/other interest? ie; does the total balance including credits still fall within the original terms of the loan [principal + interest]?

 

Phil

[golfillini2]

The loan is in default and yes i think the total balance is within the original terms.Is there a way to get the interest removed since the default came into play

[Mike_hawk]

Probably not, you'd effectively be requesting a rebated balance to discharge over extended terms. Certainly no harm in writing to them and asking though.

 

From what I can gather from your posts, the debt isn't actually increasing. I appreciate it may give the appearance that it is due to the way they are managing the account.

 

How many years of the original loan term left to run?

 

Do you have copy agreement and statements of account to accurately calculate the outstanding balance?

 

I believe it's important for you to calculate how far into the future your 'informal arrangement' will still be active post term. Once you've worked out the details it will give you a better idea of how to approach the bank, and the form/content of written response you want to see from them that will be helpful to you in estopping any possible future application of interest or enforcement.

 

Phil