Debt partially satisfied

111KAB

Hopefully on the correct section of the forum - not normally on this section but making enquiry on behalf of a friend!

Overdraft (un-authorised) of approx £220 and pointed out to bank they had levied some overdraft charges which did not appear correct and accordingly account would be closed. Bank accepted they had been partially at fault and said if account was to be closed they would require a final payment of £60 to clear the debt BUT they would "record this debt as partially satisfied with credit reference agencies".

Friend does not have credit card or a mortgage and in fact doesn't want either and can see no reason to change mind in future however I assume the bank's wording regarding the partially satisfied aspect should not be accepted.

Is my assumption correct? Suggestion how to resolve the matter.

Thank you.

JuicyJesus

By the sounds of things they are writing off not only charges that have been wrongly applied (which they should refund without recourse to the customer if they are genuinely only incurred as a result of bank error) but also charges that have been correctly applied, and they have every right to collect (and do not have to refund) charges that have been correctly taken.

If that is the case, they can mark the debt as partially settled, because it is only partially settled. The bank should waive any charges that are the result of its own sole error, that's only fair (and if they didn't the Financial Ombudsman would dance on their fingers), but do not have to waive any others.

111KAB

Thanks ~ spot on JJ but should my friend accept the 'warning' to the credit reference agencies (does this cause any/future problems?) and if not is there any way around it rather than paying the full £220?

YorkshireBoy

111KAB wrote: »

Friend does not have credit card or a mortgage and in fact doesn't want either and can see no reason to change mind in future

Does the same apply to a mobile phone contract?...a DFS sofa?...a TV from Currys, Argos, etc on BNPL?

And will it also apply for 6 years from the date of the partial settlement?

If so, there isn't a problem. But for debt so (relatively) small in value it'd make sense to make all attempts fully satisfy it wouldn't it?

111KAB

YorkshireBoy ~ thanks thats what I thought but bank have admitted they have been partly at fault but won't give a figure at which they will not inform the credit agencies however presume they would not if £220 paid in full.

JuicyJesus

111KAB wrote: »

YorkshireBoy ~ thanks thats what I thought but bank have admitted they have been partly at fault but won't give a figure at which they will not inform the credit agencies however presume they would not if £220 paid in full.

Your friend should press them to clarify which charges are a result of their error, ask them to refund them, and then pay the balance.