HELP - Santander Oversraft Ruined My Credit Rating!
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jlrsr
Posts: 1 Newbie
Hi all, hoping to get any advice if possible!
I originally had a student overdraft with Santander from 2011. Being the idiot student I was, I opted for a 2k overdraft when offered one and maxed it out whilst at uni. Fast forward to me finishing my masters - July 2016 - Santander write to me and tell me they are removing my overdraft facility.
I couldn't afford to pay it all off. So, I agreed to a repayment plan of £150/month until the balance was cleared. At this point, I didn't think anything of it, and felt everything was in hand. I paid the monthly payments month after month (never missed one).
Anyway - a month ago - I apply for credit and get refused based on poor credit. So I get an Experian credit report to explore what has happened. Surprise surprise it's Santander - the only negative thing in my credit report is that account sitting as 'delinquent' and a marker claiming I've missed 3 or more payments (but I always paid the monthly fee on time!..)
I figured a repayment plan would have a small impact on my credit - but because I was diligently paying it off each month - that it wouldn't be too much impact. But from what I can see on Experian, even though I've paid my repayments on time every time, each payment doesn't have a 'green tick' and rather a red marker - suggesting late payment and the overall status of the account is delinquent!
I don't know what to do. I have paid off the remaining balance today by scraping together the final outstanding balance so it's now fully cleared. All 2k. But it seems like it's too late? Is my credit messed up now? Is there anything I can do? These points were never discussed with me in the beginning and I frankly can't believe I have been penalized for sticking to the agreement and paying on time and clearing the balance. Surely that's a positive?? What can I do? How long will my credit score be ruined for? Can I overturn this?
Would appreciate any help or advice, thanks so much in advance!
I originally had a student overdraft with Santander from 2011. Being the idiot student I was, I opted for a 2k overdraft when offered one and maxed it out whilst at uni. Fast forward to me finishing my masters - July 2016 - Santander write to me and tell me they are removing my overdraft facility.
I couldn't afford to pay it all off. So, I agreed to a repayment plan of £150/month until the balance was cleared. At this point, I didn't think anything of it, and felt everything was in hand. I paid the monthly payments month after month (never missed one).
Anyway - a month ago - I apply for credit and get refused based on poor credit. So I get an Experian credit report to explore what has happened. Surprise surprise it's Santander - the only negative thing in my credit report is that account sitting as 'delinquent' and a marker claiming I've missed 3 or more payments (but I always paid the monthly fee on time!..)
I figured a repayment plan would have a small impact on my credit - but because I was diligently paying it off each month - that it wouldn't be too much impact. But from what I can see on Experian, even though I've paid my repayments on time every time, each payment doesn't have a 'green tick' and rather a red marker - suggesting late payment and the overall status of the account is delinquent!
I don't know what to do. I have paid off the remaining balance today by scraping together the final outstanding balance so it's now fully cleared. All 2k. But it seems like it's too late? Is my credit messed up now? Is there anything I can do? These points were never discussed with me in the beginning and I frankly can't believe I have been penalized for sticking to the agreement and paying on time and clearing the balance. Surely that's a positive?? What can I do? How long will my credit score be ruined for? Can I overturn this?
Would appreciate any help or advice, thanks so much in advance!
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Comments
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As far as I can tell, your credit report is accurate. The overdraft facility was repayable on demand, and you failed to repay when they demanded it; agreeing a settlement plan doesn't change that unfortunately.
I hope I'm wrong, but if not the best thing you can do is rebuild - use any existing credit products you have sensibly, and take what you can in terms of credit cards (repay in full by DD to be sure).0 -
Your limit was nil and you were over your limit.
The report is correct.0 -
Most students know that once they graduate their overdrafts will no longer remain at 0% and will revert to being a normal current account. As with normal current accounts come the same bog standard fees and charges for being in your overdraft. Some banks will just opt to let your overdraft continue as long as you are paying the monthly overdrafts fees for it, whereas in your case, Santander decided to ask you for the entire amount to be repaid (which every bank is well within their right to).
You had 5 years to chip away at the debt but didn't and so agreed to a repayment plan with Santander. The moment you didn't clear the overdraft when Santander asked you to, is the moment you defaulted on your payment and broke the terms of your agreement.
The late payment markers are correct and will remain for 6 years on your credit files. All you can do now is not apply for anything for a long while and do nothing. Time is the only healer for a poor credit history.
Here are some threads on what is known as Arrangement to Pay markers:
http://forums.moneysavingexpert.com/showthread.php?t=1626051
http://forums.moneysavingexpert.com/showthread.php?t=3878573
http://forums.moneysavingexpert.com/showthread.php?t=5187196I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com0
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