Santander - Unfair? Credit Report

vickipompey

In 2008, I changed my Abbey bankings account to a student account after going back to Uni. They issued me with a £1500 overdraft which I was in mostly all of my time as a student.

In Sept 2009, when I graduated, they usually increase the overdraft to £2000 and then set up a payment plan to clear the overdraft over a number of months. At the time of switching over, I was over my overdraft (unsure by how much but it wouldn't have been much) so they did not give me the extra £500 which didn't bother me but what they did do was took the whole £1500 overdraft from me - so I owed £1500. I didn't have a job after I graduated so I couldn't pay anything off initially so when I did (get a job) , I started to pay off £100 a month until it was paid. I never used the account again and statements went to the parents house after I moved. I usually used to get 1 statement saying £100 in, £100 out so I started throwing them out without opening them knowing that by Xmas 2011 it would be all done.

Then in Feb this year, I noticed I had more than the 1 or 2 letters from Santander and so I opened it and it seemed that they took all the money from me except £8.08! So I had been charged £160 over the last few months. I called them and complained - they took off all the charges as they felt it was unfair and I paid the £8.08 over the phone.

NOW, I have a bad credit rating! I tried to get a loan to pay off my existing & extra to get another car and I was refused - even a joint application with my partner. I looked back to 2009 and back in Feb and I have bad marks again my account. My score is 500 or something...and it's poor. It says I have a default/delinquent account. Can you default on an overdraft?

I brought my first house in Nov 2009 and then applied for a loan in May 2010 for a car which were both joint with my partner with no problem which was after the Sept 2009 so I presume the bad marks are because of this £8.

I've complained direct to Santander and they said that because I was over my overdraft in 2009, I breeched my T&C so they had the right to take my overdraft immediately off me. I feel this is really unfair considering I was student/graduate. Also, to get a bad credit for £8 is unfair but they are saying that they had to legally put this on my credit.

So I suppose what I am asking is, is this fair? Do you think the FO will be able to help me? I want to move house and get a new car and I don't think I could get another mortgage, especially if lenders refused me for a loan already

happy_bunny_2

Hi
Yes they can default you for an overdraft. You could argue you have been treated unfairly, but an OD is repayable on demand. I would focus on the fact it was a student one.

Did you make a formal complaint and receive a final response? If not you need to do so before FOS can look at it.

Good luck

HB

[Deleted User]

I took my complaint, very similar to the FOS. They said to me what you have quoted and I was given £100, I was told the credit ref information would stay. Sorry there are loads of posts on here that read the same with the same unfortunate result.

vickipompey

The guy who was dealing with my complaint at Santander repeatedly said that I could not have a default on a overdraft. He said he would look into that separately so I am sending him a copy of my credit report.

I didn't get a final letter from them yet - but I will ask for one and see how I go. I will try the FO though as I feel that for £8 it is ridiculous that I can't move on with my life.

awayinchina

vickipompey wrote: »

The guy who was dealing with my complaint at Santander repeatedly said that I could not have a default on a overdraft. He said he would look into that separately so I am sending him a copy of my credit report.

I didn't get a final letter from them yet - but I will ask for one and see how I go. I will try the FO though as I feel that for £8 it is ridiculous that I can't move on with my life.

Hi there,

Please record the phone call. If you get them saying that you will have a nice strong position. 99% of what they say on the phone is inaccurate and they will deny saying it as you escalate the complaint.

use a mobile or skype (£2 for skype) but you will have an audio recording. I have been doing this for the past 70 days or so and it has been so useful. especially when they say "we would never say that" playing it back and listening to their silence is priceless. Also, if you do escalate it and involve FOS you can send it as an attachement on an email as a record.

Banks record you and do use it against you, so do the same to them.

Good luck

bargainbetty

Just a thought, but if the total you have outstanding on your current loan and the total sum you wish to borrow exceed 50% of your income, then you would probably be rejected anyway - banks are getting very tough on consolidation loans or refinancing.

If they did apply the default, other institutions may have ignored it or allowed for it, but they don't have to. You broke the terms of the agreement. £8 or £80 - they don't have the flexibility to say 'Oh, it's only that much...' because they have to draw a line somewhere. Sorry, I know that's probably not want you want to hear.

Good luck getting it sorted

vickipompey

I only owe £5500 in total and not including my mortgage and me and my partner are on £60 between us.