Help! Bank error caused default notice

geekinaseat

I got home last night and checked my mail to find I had been served a default notice from santander consumer finance.

I have a hire purchase agreement with them for a car, I have always kept up payments and have no poblems paying each month.

Earlier this month my direct debit to them returned unpaid from my bank. It showed on my statement as one payment going to santander and right underneath a credit for the same amount with UNP next to it which I assume means unpaid. There were plenty of funds in my account and there is no reason that I know of it should not have been paid.

Anyway this went unoticed for about a week until I got a letter from santander (which I cant find now) I rang them straight away and paid via debit card and re setup my direct debit - I thought all was well.

But then this default is sent to me back dated the 12th of July - can they do this? I paid the late amount on the 14th. I really don't know where I stand on this as as far as I was concerned it was late but i did everything I could to pay it. I really don't want a black mark on my credit file but don't know what I can do to avoid it.

One thing that my cynical side keeps thinking of is the fact that I have just sent them a letter to begin voluntary termination as I don't want the car anymore. Could they have served the default in response to that to "throw a spanner in the works" so to speak?

They are not open today to talk to but I could do with some advice as to what to do before I speak to them in the morning?


Any help please!?

BigCraigJohn

Is this an actual default or notice of default charges?
If its just charges and its a 1 off they'll probably let you off if you ask nicely.
Im not sure on the ins and outs of hire purchase but this would be super harsh if it was a default notice.

wornoutmumoftwo

I had a cheque for £8 returned for insufficiant funds (balance avaliable was over £100).
The reason for this was because every time we spend over £100 they put the account on a fraud block, mainly because Idraw £100 once a week and anything that is different gets blocked. Really annoying.

Did you have any other big spends around this time? I'm not sure if this is the norm or just us, but it's happened three times now, marking the account as havng no funds in it although there is, unfortunatly the cheque got caught up in one.

pipsi_2

I would call Santander on Monday to see what's going on, it seems odd that they've issued a default notice after only one 'missed' payment. It may have just been issued in error, it may have been sent just before you called up and made the payment over the phone. Is it a letter to say they may issue a default because you missed a payment, or is it actually a default notice? Did you get to the bottom of why they returned your DD?

geekinaseat

The letter reads:

Dear Mr X 12 JULY 2010

Notice of default sum given in complaince with the consumer credit act 1974

*********************************************************
- Finance agreement Number:

---

-Goods:

---

-Outstanding Arrears: £221.69
-Action Required by you: Please pay or telephone us immediately.
*********************************************************

Your finance agreement is in arrears, as shown above, therefore a £25.00 late payment charge was debited to your agreement on 12/07/10.

Continuing late payment will attract additional fees.

Please make arrangements to pay us immediately.

To pay us by debit and credit card etc

-We record, with the credit reference agencies, details of payments you make and we may record any default or failure to keep to the terms of the agreement.
-This information may be shared with other prioviders of credit. Therefore, default may affect your ability to obtain credit in the future.

This notice does not take into account of default sums which we have already told you about in another default sum notice, whether or not those sums remain unpaid.

If for any reason you are experiencing difficulty in paying, please contact us immediately on the telephone number shown above.

Yours Sincerly

Richard Kernick
Head of Arrears Management


What do you think is that an actual default or somehting else?

geekinaseat

I have no idea why it went unpaid in the first place, it's from my bills account which pays the same direct debits every single month. I do remember that the start of this month all of my other payments seem to go late as well, my rent for example which is usually faster payments on the 1st didn't go until the 6th but I didn't think much of it at the time.

I think I'll call my bank and investigate. If it turns out to be the banks fault I'm guessing that doesn't really change matters as from santanders perspective, they don't care why they didn't get paid... they just know that they didn't on time, or do I have some grounds to appeal?

BigCraigJohn

Im sure I read something about Santander having problems so well worth getting in touch to see if they will remove the charge.

Tubbss

HI

This is not a default notice.

It is a notice of default sum letter advising that you have missed a payment and incurred a charge. All finance companies / credit card companies etc have to send the "notice of default sums" letters whenever a payment is missed / charge incurred. Just for your own piece of mind call Santander and confirm all is in order as you have repaid the missing payment but it is NOT a default notice.

geekinaseat

So what's the difference between a default notice and an actual default? So would this have effected my credit file?

Thanks for all of your replies, this is starting to sound a bit more positive now! Definitely feeling better about it than I was last night!

Happytogetdebtfree

I think there must be issues with Santander because we also had a bill returned unpaid when funds were sufficient! Maybe it's the system, it may be worth ringing about the default sum and query it with them you had sufficient funds and that's that. Good luck

Tubbss

Hi
The name of the letter is very mislading - "notice of defaul sums" is advising you of chrges you have incurred and as you immediatly replaced the payment this should not have a detrimental effect on your credit file. In my opinion it should br renamed to "notice of arrears charges" or somthing along those lines.