Santander Issue

[Richyb]

Hey everyone, got a rather interesting issues i hope someone can give me some solid advice on

 

I use to have a ban account with Santander (when it was Abbey National) Being young and stupid i was in my overdraft a lot, first by £200, i'd go to the bank get £300 then max that out and this carried on till it got to £800. I then lost my job and due to charges the amount when to over £900. Santander saw no money was being paid in and froze the account. In the end we came to an agreement where i would pay the amount to take it into the authorized overdraft and pay back £10 per month for 6 months then the plan would be re assessed. Now here comes the share stitch up.

 

After paying back £10 each month for 6 months, on the 7th month i go to the back to pay in £10 just in case, the cashier tells my my account is frozen and that i cannot pay any money in. We write to Santander and get nothing back. We leave it a year to be greeted with a "your owe us XXX" In the end we came to an settlement figure and i paid it.

 

The problem is not there is a nasty default on my credit file and this also tells a different story. They made a note than i had missed all of the 6 months payments of £10 and then 2 late payments on the 7 and 8th month then hit me with a default.

 

In my opinion they are morally wrong.

 

They allowed me to keep extending my overdraft knowing i lived in it.

They stopped me from paying in money to reduce the debt, then told a pack of lies to the credit agencies.

 

I do know that 95% of this is my fault as i was young and dumb but as a duty of care, Santander could of stopped me from getting a overdraft and worked out a way to bring the balance into credit.

 

Any thoughts of how to get this default removed if its even possible, the story is much longer but i'm sure you all dont want a book to read so summed it up.

 

Got 2 other accounts that default in a similar fashion and i'm at the stage in my life where this is effecting my chances of getting a mortgage big time.

[matttye]

They should have put an 'arrangement to pay' on your file and not missed payments, but an arrangement to pay is usually viewed worse anyway.

 

The default is valid and it doesn't sound like there are grounds for removal. Santander lends money to millions of people; they don't have the time to manually consider every application for credit, it's mainly automated. The main duty of care falls with the borrower to ensure affordability.

[BRIGADIER2JCS]

Hello Richyb, Welcome to CAG,

 

The data that Santander are causing to be displayed is most definitely incorrect and can be contested, you say that you reached a settlement and paid the account off, was this at a lower amount than the full outstanding balance.

 

The manner in which the account was closed is unfair it seems, Santander prevented you from making payment into the account,

you made the £10.00 payment each month on what would be seen as an 'assessment' period NOT an arrangement to pay.

 

Month 7 you are prevented from making further payments by Santander, so month 8+ a default is placed? Did you receive a default notice giving you time to remedy the default?

 

I think this is clearly unfair treatment from Satans Bank, which is nothing new!!

 

So may I suggest that this very much open to challenge and the possibility of removal the default, and the entry on the credit files.

Write to the Data Controller at Santander with the following:

 

Private & Confidential

The Data Controller

Santander.

 

Ref: Account No.xxxxxxxxxxxxx

 

FORMAL COMPLAINT: Inaccurate Data Displayed on CRA Files/Inappropriate Default:

 

Sir/Madam,

 

I write to complain regarding the conduct of Santander in regard to my current account No.xxxxxxxxx, and the overdraft facility provided on the account.

 

The circumstances are as follows, in 200X I lost my job and was then unable to service the account and the outstanding overdraft balance. I entered in to an agreement to pay £10.00 per calendar month on xx.xx.xxxx. for 6 months to be assessed at the end of the 6 month period, these payments were never missed:

 

On xx xx xxxx I attempted to pay £10.00 into the account at the xxxxxxxx branch of Santander, but the payment was refused by the cashier who stated that the account was frozen, please note I had NOT at anytime been informed that this action would be taken.

xxxx

Approximately 1 year later having had NO contact from Santander I received a letter stating that I now owed £xxx.xx, Santander had totally ignored letters sent by me in that one year perio.

 

On xx.xx xxxx., I contacted Santander and finally reached a a 'settlement' on the outstanding balance.

 

My complaints are as follows:

1. Santander Froze the account without any notice.

 

2. Santander refused payment offered at a branch because it had frozen the account.

 

3.Santander ignored letters from me when I attempted to contact the bank to resolve the matter.

 

4. Default was placed on xx, xx, xxxx., I did not receive any notice of intention to default the account and nor was I given any opportunity to remedy the default.

 

5. I believe that Santander caused the account to go over the agreed overdraft limit of £xxx.xx., by the addition of charges of £xxx.xx. The ICOs Technical Guidance on Defaults States that 'If a default sum is made up of charges without which the account would not have been defaulted, no default should be placed.

 

There is now the more serious complaint regarding Santander causing clearly inaccurate data to be displayed on my credit reference files held by ........................... credit reference agencies, the points I REQUIRE Santander to address are as follows.

 

1. Santander has caused the following data to be displayed:

(a). 6 Months of missed payments relating to the period of the agreed payment of £10.00 p.c.m, THESE PAYMENTS WERE ALL MADE.

 

(b).Santander then reported that there were two late payments on xx. xx.xxxx and xx.xx.xx, this covers the dates when Santander refused to accept payments because it had frozen the account.

It is my contention that this situation has arisen due to the incompetence and bad business practices of Santander.

 

©. It is my contention that Santander either through incompetence or deliberate actions has caused inaccurate data to be displayed on my credit reference files damaging my credit profile.

 

(d). Santander placed a default on the account, although the default was caused by the addition of charges.

 

I now Require Santander to review its conduct in regard to the 'management' of this account, taking particular note of the placing of clearly inaccurate data on credit files and the placing of the default without good reason and its failure to notify me in any way that this action was to be taken.

 

Santander has 56 days from the date hereon to answer all the points of this formal complaint, on receipt of Santander's response I will consider what further action is necessary, including but not limited to reports to all relevant regulators and a complaint to the FOS.

 

Send by recorded signed for delivery and check receipt.

 

Please amend/add dates etc. as needed.

 

Good Luck!!

 

©.

[Richyb]

Thank you for your reply's

 

While i accept in every aspect it was my fault for living in my overdraft i do fell as tho they had a duty of care to not help me get further into debt which is what they did.

 

The problem i know i will face is how can i prove they did not let me pay the money, when i contested this they told me they would never do this.

 

They did not issue me a default notice which i know it against the law.

 

Again whats to stop them from saying they did issue it.

 

I didn't pay the full balance off, what happened was they removed most of the charges as a good will gesture but i still paid of the money i personally spent on the account.

 

I do feel i have a case to get the default removed based on it not being issued correctly but the odds are stacked against me since as its almost 3 years old.

 

I can prove tho that the money was paid into the account for the 6 months of the agreement.

 

I will defiantly use your letter as a template BRIGADIER2JCS, thanks for that.

 

I will send one off Monday and update on how i get on (Fingers Crossed)

[BRIGADIER2JCS]

Richy, B,

 

Don't beat yourself up over this 99.99% of the blame here resulted from the incompetence and data manipulation by Satans Bank!!!

[Peterbard]

Sorry but I do not think you have much of a case here, you entered an arrangement to pay, after this ended they marked your file as in default because the balance was not paid, they were under no compulsion to extend this period.

 

As for issuing a default notice, if you are referring to a section 87 notice , it is only appropriate if the intend to commence proceedings, otherwise they do not have to issue one. They should have warned you prior to placing the D on your file but this is only a guideline and not a a legal requisite, sorry but I thought I would let you know the real picture before you start wasting time sending long winded letters to no avail.

[matttye]

Hello Richyb, Welcome to CAG,

 

The data that Santander are causing to be displayed is most definitely incorrect and can be contested, you say that you reached a settlement and paid the account off, was this at a lower amount than the full outstanding balance.

 

The manner in which the account was closed is unfair it seems, Santander prevented you from making payment into the account,

you made the £10.00 payment each month on what would be seen as an 'assessment' period NOT an arrangement to pay.

 

Month 7 you are prevented from making further payments by Santander, so month 8+ a default is placed? Did you receive a default notice giving you time to remedy the default?

 

I think this is clearly unfair treatment from Satans Bank, which is nothing new!!

 

So may I suggest that this very much open to challenge and the possibility of removal the default, and the entry on the credit files.

Write to the Data Controller at Santander with the following:

 

Private & Confidential

The Data Controller

Santander.

 

Ref: Account No.xxxxxxxxxxxxx

 

FORMAL COMPLAINT: Inaccurate Data Displayed on CRA Files/Inappropriate Default:

 

Sir/Madam,

 

I write to complain regarding the conduct of Santander in regard to my current account No.xxxxxxxxx, and the overdraft facility provided on the account.

 

The circumstances are as follows, in 200X I lost my job and was then unable to service the account and the outstanding overdraft balance. I entered in to an agreement to pay £10.00 per calendar month on xx.xx.xxxx. for 6 months to be assessed at the end of the 6 month period, these payments were never missed:

 

On xx xx xxxx I attempted to pay £10.00 into the account at the xxxxxxxx branch of Santander, but the payment was refused by the cashier who stated that the account was frozen, please note I had NOT at anytime been informed that this action would be taken.

xxxx

Approximately 1 year later having had NO contact from Santander I received a letter stating that I now owed £xxx.xx, Santander had totally ignored letters sent by me in that one year perio.

 

On xx.xx xxxx., I contacted Santander and finally reached a a 'settlement' on the outstanding balance.

 

My complaints are as follows:

1. Santander Froze the account without any notice.

 

2. Santander refused payment offered at a branch because it had frozen the account.

 

3.Santander ignored letters from me when I attempted to contact the bank to resolve the matter.

 

4. Default was placed on xx, xx, xxxx., I did not receive any notice of intention to default the account and nor was I given any opportunity to remedy the default.

 

5. I believe that Santander caused the account to go over the agreed overdraft limit of £xxx.xx., by the addition of charges of £xxx.xx. The ICOs Technical Guidance on Defaults States that 'If a default sum is made up of charges without which the account would not have been defaulted, no default should be placed.

 

There is now the more serious complaint regarding Santander causing clearly inaccurate data to be displayed on my credit reference files held by ........................... credit reference agencies, the points I REQUIRE Santander to address are as follows.

 

1. Santander has caused the following data to be displayed:

(a). 6 Months of missed payments relating to the period of the agreed payment of £10.00 p.c.m, THESE PAYMENTS WERE ALL MADE.

 

(b).Santander then reported that there were two late payments on xx. xx.xxxx and xx.xx.xx, this covers the dates when Santander refused to accept payments because it had frozen the account.

It is my contention that this situation has arisen due to the incompetence and bad business practices of Santander.

 

©. It is my contention that Santander either through incompetence or deliberate actions has caused inaccurate data to be displayed on my credit reference files damaging my credit profile.

 

(d). Santander placed a default on the account, although the default was caused by the addition of charges.

 

I now Require Santander to review its conduct in regard to the 'management' of this account, taking particular note of the placing of clearly inaccurate data on credit files and the placing of the default without good reason and its failure to notify me in any way that this action was to be taken.

 

Santander has 56 days from the date hereon to answer all the points of this formal complaint, on receipt of Santander's response I will consider what further action is necessary, including but not limited to reports to all relevant regulators and a complaint to the FOS.

 

Send by recorded signed for delivery and check receipt.

 

Please amend/add dates etc. as needed.

 

Good Luck!!

 

©.

 

They accepted reduced payments for 6 months and then added a default. Does this sound familiar?

 

"21 An ‘arrangement to pay’

This involves a temporary, short-term (up to six months) arrangement where the lender agrees to accept reduced payments."

 

http://www.ico.org.uk/for_organisations/sector_guides/~/media/documents/library/Data_Protection/Detailed_specialist_guides/default_tgn_version_v3%20%20doc.ashx

 

It seems quite clear to me it was an arrangement to pay!

[BRIGADIER2JCS]

They accepted reduced payments for 6 months and then added a default. Does this sound familiar?

 

"21 An ‘arrangement to pay’

This involves a temporary, short-term (up to six months) arrangement where the lender agrees to accept reduced payments."

 

http://www.ico.org.uk/for_organisations/sector_guides/~/media/documents/library/Data_Protection/Detailed_specialist_guides/default_tgn_version_v3%20%20doc.ashx

 

It seems quite clear to me it was an arrangement to pay!

Which is irrelevant in this case, as the payments were made, but Santander, froze the account and refused further payment, so the classification of the 'payment schedule' matters not.

[matttye]

Which is irrelevant in this case, as the payments were made, but Santander, froze the account and refused further payment, so the classification of the 'payment schedule' matters not.

 

I'm not disputing that freezing the account and refusing further payments is both unlawful and unethical, and there's definitely a basis for complaint there. I don't see how that affects the validity of the default though. Had the payments been allowed to continue at a reduced rate, a default would still have been issued.

[BRIGADIER2JCS]

It is patently clear from the POs statements he was willing to clear this debt completely and indeed did so, the default sum was directly related to Santander adding charges to the account, after refusing payments.

[Peterbard]

I'm not disputing that freezing the account and refusing further payments is both unlawful and unethical, and there's definitely a basis for complaint there. I don't see how that affects the validity of the default though. Had the payments been allowed to continue at a reduced rate, a default would still have been issued.

 

I am not sure it is unlawful even, the have a right to demand payment, as said it was a short term agreement there is no reason why they should be compelled to commence another(in law), when the cumulative arrears reached the trigger point a default was registered, there doesn't really seem to be any mystery here.

[matttye]

Which is irrelevant in this case, as the payments were made, but Santander, froze the account and refused further payment, so the classification of the 'payment schedule' matters not.

 

I've re read the OP and I still can't tell whether Santander only wanted him to take it back into an authorised overdraft, or if they wanted the whole lot back.

 

If they only wanted the account to go back into an authorised overdraft, freezing it would make no sense.

 

If they asked for the entire overdraft back, then again, the default is valid.

[Richyb]

Thank you for some great reply's. Glad so many people have got involved.

 

Regarding matttye comment, they wanted the account back at £0.00 i guess with the intention to close the account completely.

 

Here is a screen shot of this account credits file and the issue, that they have told the credit company's i have not paid any of the agreed payment plan

 

i42.tinypic.com/2l8vhc9.png (sorry not got 10 posts)

 

March 2010 was the date of the agreement and was told the first payment must hit the account by April. Which it did. I have all the payment receipts for the 6 month to prove each payment was made.

 

As far as i'm concerned they closed the account without telling me thus stopping me paying in anymore money which then caused them to issue a default. They stopped me paying in money other wise i would of carried on paying in money reducing the debt. This is why i feel they are responsible for this default and why it should not stand.

 

I made it clear i was happy to clear the balance but being i was out of work at the time i could only afford small amounts. They where happy to proceed and told me after 6 months they would look at the account to make a new arrangement, This never happened.

 

Since my last reply i actually emailed Julie Savage the Executive Complaints Manager who replied saying she will be doing a private investigation into my complaint. Fingers crossed i get the desired outcome.

[ims21]

I think this is the picture of the report that Richyb wanted to post