Santander - zero'd account charges

anthonykr

Hi all,
I recently got a letter from a debt recovery company.
I had cleared my overdraft with Santander in 2011 in branch and asked them there if I had any outstanding charges, standing orders, direct debits, or other things that would affect the account.
So would I have any charges ergo, could I leave the account at zero?
I was assured that there would be no charges and the account would be left alone. Looking back I think I've been foolish but I saw the economic crisis and thought, I'd be better to have a zero account rather than applying at a later time and be refused for some reason so I left the account open but at zero.
I then moved house but the account was linked to my parents' house and if they needed me they could get in touch that way (also my phone).

So I now have a letter from a debt recovery agency.
I asked and the account had been charged for being premium (which I had said at the time was to stop) and mounting overdraft fees now leave me £600 overdrawn!
So I'm pretty shocked, I said my situation (I cleared the overdraft, checked in store for any further charges and left it at zero).
The bank staff were helpful but because I had not changed my address, they said there is no error on Santander's part and they can not refund me.
They did refer me to a complaint department if I were to go that way so I am due to speak with a collection's department on Monday but I am concerned that I am now to be charged £600 for simply having an unattended account.

Is there anything I can do to have this debt written off?
Is there a third party ombudsman or regulatory body who could help?
Surely there must be a limit to the amount that can be charged in this way? Can they charge indefinitely for zero product used in this way?

Any help or advice would be greatly appreciated but I fear the answer is going to cost me greatly!

Little_Mo_70

anthonykr wrote: »

Hi all,
I recently got a letter from a debt recovery company.
I had cleared my overdraft with Santander in 2011 in branch and asked them there if I had any outstanding charges, standing orders, direct debits, or other things that would affect the account.
So would I have any charges ergo, could I leave the account at zero?
I was assured that there would be no charges and the account would be left alone. Looking back I think I've been foolish but I saw the economic crisis and thought, I'd be better to have a zero account rather than applying at a later time and be refused for some reason so I left the account open but at zero.
I then moved house but the account was linked to my parents' house and if they needed me they could get in touch that way (also my phone).

So I now have a letter from a debt recovery agency.
I asked and the account had been charged for being premium (which I had said at the time was to stop) and mounting overdraft fees now leave me £600 overdrawn!
So I'm pretty shocked, I said my situation (I cleared the overdraft, checked in store for any further charges and left it at zero).
The bank staff were helpful but because I had not changed my address, they said there is no error on Santander's part and they can not refund me.
They did refer me to a complaint department if I were to go that way so I am due to speak with a collection's department on Monday but I am concerned that I am now to be charged £600 for simply having an unattended account.

Is there anything I can do to have this debt written off?
Is there a third party ombudsman or regulatory body who could help?
Surely there must be a limit to the amount that can be charged in this way? Can theycharge indefinitely for zero product used in this way?

Any help or advice would be greatly appreciated but I fear the answer is going to cost me greatly!

I think that your fears may, unfortunately, be correct.

Up to now I didn't know what a premium account was but having googled it I see it's a wonderful account costing the account holder a princely monthly sum. You say that you gave instructions for the 'premium' element of the account to stop. I think that the only way to stop that would have been to close it, as they wouldn't have allowed you to still have the account with amended t's and c's otherwise what's in it for them? Perhaps you have a copy of any instruction given to the bank at the time saying something along the lines that you wanted the premium to stop?
If you have then you might at least have some arguement for a complaint. If not it doesn't look good.

http://www.fsa.gov.uk/consumerinformation/if_things_go_wrong
Give the FSA a ring to see where you stand.

http://www.financial-ombudsman.org.uk/consumer/can-we-help.htm
The Financial Ombudsman Service deals with complaints between you and your bank/or other financial body which are not resolved to your satisfaction.

anthonykr

Thanks for that, the advice is greatly appreciated.
I'll await the call with the complaints department before any other action.
I feel a total fool for not seeking it in writing at the time and presuming that once paid the debt was done. The assistant must have misunderstood when I asked if it would cost me to leave it as a zero for possible future use without supervision.
I even thought I'd pre-empted any charges by putting some extra in just in case but the ongoing charges threw me well over that obviously.
I fear my only hope is that they waive it as a goodwill gesture.
Thanks again though.

Little_Mo_70

anthonykr wrote: »

Thanks for that, the advice is greatly appreciated.
I'll await the call with the complaints department before any other action.
I feel a total fool for not seeking it in writing at the time and presuming that once paid the debt was done. The assistant must have misunderstood when I asked if it would cost me to leave it as a zero for possible future use without supervision.
I even thought I'd pre-empted any charges by putting some extra in just in case but the ongoing charges threw me well over that obviously.
I fear my only hope is that they waive it as a goodwill gesture.
Thanks again though.

Good luck Anthony. Hope they do waive it for you:)
Mo

ShockedDebtor

I am in PRECISELY the same position AnthonyKR... just shy of £600 overdrawn on A&L online/paperless Premium account I zeroed and forgot when I moved house. I, too, got the letter from a Recovery agent and am now totally horrified that I have this massive amount owing. What the hell can I do? It seems royally unfair (I know, life/banks are NOT fair!) that there is no actual debt on my part, just one underfunding fee and then overdraft fees over 6 months apparently. I'm in a total flap as I really can't afford £600 and I have now had a threatening red letter arriving. Arrrrgggggghhhhh!

anthonykr

Thanks for the assistance LittleMo.
I've some great news though folks. Hopefully this will give ShockedDebtor some ray of hope.
The collections department called me on Monday, after a discussion, during which I mentioned that I'd honestly believed I had updated the address and had genuinely cleared the account with good intentions they agreed to waive the fees and close the account!
I can't tell you how ecstatic I am at this.
Don't get too hopeful, though Shocked, it was a courtesy of theirs, no obligation, but I hope it turns out ok.
I called Complaints Department (0845 600 6014) who had Collections call me to clear. They seem to be the only ones with the power to waive the fees.
I can't emphasize how greatful I am to the staff and management at Santander over this, who listened, helped and resolved this for me.
My case boiled down to:
Change of address (and I thought I'd updated the records)
Proven evidence I'd cleared the overdraft
Misunderstanding over nature of premier account (I thought charge only applicable when actually overdrawn).
Good luck ShockedDebtor and thanks again Santander collections.

ShockedDebtor

Thank you so much for the update AnthonyKR - I will keep hope in check, but will (nonetheless!) hope that I am lucky enough to meet the same sensible person at Santander that dealt with your case so well. Many fingers crossed and thanks for taking the time to update your case, really really appreciate it.

Little_Mo_70

anthonykr wrote: »

Thanks for the assistance LittleMo.
I've some great news though folks. Hopefully this will give ShockedDebtor some ray of hope.
The collections department called me on Monday, after a discussion, during which I mentioned that I'd honestly believed I had updated the address and had genuinely cleared the account with good intentions they agreed to waive the fees and close the account!
I can't tell you how ecstatic I am at this.
Don't get too hopeful, though Shocked, it was a courtesy of theirs, no obligation, but I hope it turns out ok.
I called Complaints Department (0845 600 6014) who had Collections call me to clear. They seem to be the only ones with the power to waive the fees.
I can't emphasize how greatful I am to the staff and management at Santander over this, who listened, helped and resolved this for me.
My case boiled down to:
Change of address (and I thought I'd updated the records)
Proven evidence I'd cleared the overdraft
Misunderstanding over nature of premier account (I thought charge only applicable when actually overdrawn).
Good luck ShockedDebtor and thanks again Santander collections.

Hello Anthony
This news is most excellent:j:beer::j
Just one thing. If I were you, and as a precaution, I would send a letter to the complaints department -by recorded delivery sending a copy to collections agency also, confirming the content of the conversation that they have agreed to waive all fees and close your account. Keep a copy for your files in case you should need to refer to it - hopefully you never will.

I hope others have read about your experience and are taking notes,by confirming any changes to your bank account in writing you have proof to assist you in any disputes/complaints for the future.

Well done again.

Mo

Little_Mo_70

ShockedDebtor wrote: »

Thank you so much for the update AnthonyKR - I will keep hope in check, but will (nonetheless!) hope that I am lucky enough to meet the same sensible person at Santander that dealt with your case so well. Many fingers crossed and thanks for taking the time to update your case, really really appreciate it.

Hope you have the same success with their complaints department as Anthony. Ensuring your account was not overdrawn, moving house and everything else that goes with that, not using the account as a working account etc, etc, had contributed to your situation. Tell them you have received your dca letter, say why you feel you can't afford the debt - you'll need to make a good case - see hardship criteria eligibility here:
http://www.moneysavingexpert.com/reclaim/bank-charges#step1
At worst they should be able to agree an affordable management plan for you.

Good luck
Mo

ShockedDebtor

Just wanted to let you know that I have just come off the phone with the Complaints Department at Santander, who were brilliant. They spoke to the Collections Department who looked into the account and could see that an honest mistake had been made. They have kindly wiped the full charges, nearly £600 - and, even more amazingly - have given me a fiver towards the cost of my (admittedly quite long) phone call. I simply can't tell you how relieved I am... thank you for all your help. This is a truly brilliant site! SD x

anthonykr

That's great news Shocked!
I'm really pleased for you.
Thanks again for the advice Mo, I'll take exactly that action too.