bank error, what level of compensation?

AJLComputers

Hi guys

I recently got a credit card from Santander and transfered the balance from my post office credit card to Santander, at this point santander duplicated my credit card account and paid the post office twice, I was unaware of this until I made payments on the credit card but was still getting letters about an unpaid balance, after speaking to Santander and figuring out what happened they told me to speak to the post office and get them to return the funds, I did this straight away but they said they needed Santander to send in a request. I asked them to do this and they said they had.

I then started getting phone calls from Santanders collections department telling me I owed them the money, each and every time I had to explain what had happened and then they said all they could do was to put the calls on hold for 2 weeks, this went on for 6 months, I have had 11 letters from them and countless phone calls, spent hours on the phone explaining, had letters from debt collectors and been told that my credit rating had been affected.

It has now been resolved as the post office and santander have managed to sort out the funds and Santander have told me that they have corrected my credit status. I wrote a complaint to Santander and they offered me £100 compensation. I have rejected this as I don't feel that it adequately compensates me for the 6 months of harassment and anxiety that I have had. Has anyone had anything similar or can anyone give me any idea what sort of compensation I deserve?

Thanks.

YorkshireBoy

You "deserve" to be put back in the position you'd have been in had the issue not arisen, so any financial losses you've incurred should be reimbursed and your credit reports should make no mention of any late payments/defaults etc associated with the issue.

You may also be compensated for any 'distress and inconvenience' suffered (see the financial ombudsman service [FOS] website for further details). However, anything else you get will be goodwill, not "compensation".

As a guide, you may also 'charge' £10 per hour in dealing with the matter.

Only you know what's acceptable to you in terms of financial award. If you're not happy, then let the matter proceed through their complaints process to the FOS. However, what if the FOS recommend a lower award than Santander have made?

izools

Also, have you checked your credit file to ensure your payment statuses have actually been updated to remove the adverse data?