Definition of 'account in dispute'

whizzkid001

Would be grateful if anyone can elaborate what constitutes an account in dispute. I understand of course that on a simple level it's when you dispute the amount owed on something, but need to know if the following scenario would in peoples view, constitute an account in dispute.

Ok, I have a Natwest credit card and last year I'd written to them concerning their bank charges, requesting that they refund all the charges they'd placed on the account. Whilst that was being investigated, their collections department were threatening to default my account as I hadn't paid a minimum payment for a few months and had some £75 arrears. Even though I explained that by virtue of my bank charges claim, which if repaid would more than cancel out the small debt, the account was - in my view - clearly in dispute, they subsequently defaulted my account.
A month or so later, they actually agreed to refund all the charges (amounting to some £950) which, in retrospect, more than cancelled out the amount they had defaulted me for (£75), and when I complained and told them to remove the default, they refused and rejected my complaint by saying that my account had never been in dispute! Excuse me?? My asking for - and ultimately receiving - a refund of charges that ultimately far exceeded the sum they'd claimed I owed is not disputing my account??!

Lastly they say that regardless, their terms & conditions state that a minimum payment must always be made, and as I hadn't, they were correct to default me. Excuse me again, but as I read the previous Banking code, now the Lending Code, so long as an account has been put in dispute and until resolved, the financial institution should not be pursuing payment or taking any kind of recovery action. And since when does a bank's t & c's take precedence over the Banking/Lending Code?!

Peoples views much appreciated.

whizzkid001

anyone have a view??

iwantasmallholding

I am having the same problems with Santander, Santander have refused to change the default. I am now going to the Credit Refence agencies telling them the imformation they hold is not legitimate, and if that fails them FOS, or maybe small claims court.

the_insider

A dispute is considered to be a challenge over a specific transaction on the account. Unfortunately you are expected to maintain payments whilst you are making a claim for charge refunds, unless they have been applied in contravention of the account T&Cs.