NOW OPEN. The MSE Forum's energy-themed Ask An Expert event is open for questions. Visit the dedicated board to ask MSE Gary & MSE Andrew about gas & electricity

Santander Overdraft Manager

I've got a Santander Graduate Account which is coming to the end of it's first year. I've had a lot of problems with them throughout my studies and no longer use it as my main account as I don't trust them and I hate them as an organisation. It's a two way thing I think - they value my custom so much that two months after my debit card has gone out of date they still haven't bothered to replace it!!

I've tried to pay off bits of my overdraft a few times over the years but each time they have point blank refused to allow me to reduce it and I have then dipped into the money when I've been really short.

They've now sent me a letter saying they are reduce my overdraft by £1,500 on the 2nd September 2013. There's no money in there for them to take but I definitely don't have £1,500 to give them. It says in the letter "If you're finding it difficult to manage your overdraft, our Overdraft Manager can help. We could allow you to pay off your student overdraft by making regular payments for up to three years. Call us for more details." I am going to call them to discuss this because I don't have the money but I was wondering will this wreck my credit rating? I'm going to offer to pay £60 a month and will add in more as and when I can afford it (I'm about to change jobs at present and money is exceptionally tight but when I've made the change I should hopefully be better off). Also does anybody else have experience of this kind of thing?

I truly hate Santander and have nearly been to the Ombudsman about them twice. I've got no desire to put myself on the breadline for such a greedy useless bank that treats their customers like dirt, loses documents with personal details constantly and lies to get custom - but will me paying them in installments at £60 a month ruin my future credit prospects?
«1

Replies

  • Well yes they can do it and chances are, you've already broken one of their terms. As generally an account in overdraft or with an overdraft, will require a regular income of sorts going into the account.

    I've just checked and those terms are as bold as brass on the basic home page. It is a clear requirement.

    You kept using it, they did not force you, so yes by entering into an arrangement o pay and by breaking the agreement they could well file a default, if they have not done so already and yes, it would trash your credit rating.
  • edited 31 July 2013 at 12:39AM
    rozmisterrozmister Forumite
    675 Posts
    edited 31 July 2013 at 12:39AM
    Well yes they can do it and chances are, you've already broken one of their terms. As generally an account in overdraft or with an overdraft, will require a regular income of sorts going into the account.

    I've just checked and those terms are as bold as brass on the basic home page. It is a clear requirement.

    You kept using it, they did not force you, so yes by entering into an arrangement o pay and by breaking the agreement they could well file a default, if they have not done so already and yes, it would trash your credit rating.

    Can they do it is not the question, I suggest you reread my post. I'm well aware they can ask for it all back, I'm well aware it could affect my credit rating - I'm asking if anyone has more knowledge and experience of this than me.

    They've also behaved atrociously three times hence the fact the ombudsman has had to set them a period to mediate with me twice. I'm well aware what the terms and conditions are but if the bank isn't going to conduct themselves to the rules set out for them I don't see why I would! There is a regular income going in but they have never specified how much so I've been paying between £100 - £200 a month into there and they have never been unhappy with that although I assume the low amount is why they are now asking for a large chunk of the overdraft back rather than the minimum at this point after graduation (which would be £1000).

    They haven't filed a default they've sent me a letter saying that they would like payment and if I cannot pay it in full I can call to discuss installments. I'm happy to pay them in installments but I don't have the money to pay them back in full - I already spoke to a manager who works in level 2 complaints about what would happen if I could not pay them back and he said it is actually very common and I can pay in installments but he didn't know if it would affect my credit rating as it's not his department.

    I'm not the first person to take a student overdraft and then find that their graduate income is less than expected and they can't pay it. I'm not the first person to use a bank and have atrocious service and so refuse to put their full income (out of which I need to pay rent, bills, etc) into their account.

    I clearly asked in my post what I was looking for more information about. You haven't actually answered any of my questions though you've just gone off on one. Why come onto this sub forum if all you want to do is have a go at people instead of help?
  • edited 31 July 2013 at 12:46AM
    tinkerbell28tinkerbell28 Forumite
    2.7K Posts
    edited 31 July 2013 at 12:46AM
    rozmister wrote: »
    Can they do it is not the question, I suggest you reread my post. I'm well aware they can ask for it all back, I'm well aware it could affect my credit rating - I'm asking if anyone has more knowledge and experience of this than me.

    They've also behaved atrociously three times hence the fact the ombudsman has had to set them a period to mediate with me twice. I'm well aware what the terms and conditions are but if the bank isn't going to conduct themselves to the rules set out for them I don't see why I would! There is a regular income going in but they have never specified how much so I've been paying between £100 - £200 a month into there and they have never been unhappy with that although I assume the low amount is why they are now asking for a large chunk of the overdraft back rather than the minimum at this point after graduation (which would be £1000).

    They haven't filed a default they've sent me a letter saying that they would like payment and if I cannot pay it in full I can call to discuss installments. I'm happy to pay them in installments but I don't have the money to pay them back in full - I already spoke to a manager who works in level 2 complaints about what would happen if I could not pay them back and he said it is actually very common and I can pay in installments but he didn't know if it would affect my credit rating as it's not his department.

    I'm not the first person to take a student overdraft and then find that their graduate income is less than expected and they can't pay it. I'm not the first person to use a bank and have atrocious service and so refuse to put their full income (out of which I need to pay rent, bills, etc) into their account.

    I clearly asked in my post what I was looking for more information about. You haven't actually answered any of my questions though you've just gone off on one. Why come onto this sub forum if all you want to do is have a go at people instead of help?

    You won't get any help by acting like a moron.

    Maybe you should read your own posts? With the terms and conditions set out very clearly for your own account? That would be a start wouldn't it?

    May explain some of the reasons you have been having problems.

    The terms of the graduate account are quite clear.

    To enjoy the benefits of our Graduate Account, you'll need to either to be working or have a confirmed job offer. You'll also need to use your graduate account as your main account -paying in your salary each month.


    Which you have not been doing. Your problems with them should be left in the hands of the ombudsman to sort.

    You are the one who kept using the overdraft, even though you had no salary going in, they did not force you to do it. They now want you to pay it back, because you've broken the agreement and are not using it as your main account, whilst still helping yourself to funds.

    Just because someone doesn't give you the answer you like, or want, does not mean they have not answered you.
  • edited 31 July 2013 at 12:56AM
    rozmisterrozmister Forumite
    675 Posts
    edited 31 July 2013 at 12:56AM
    You won't get any help by acting like a moron.

    Maybe you should read your own posts? With the terms and conditions set out very clearly for your own account? That would be a start wouldn't it?

    May explain some of the reasons you have been having problems.

    The terms of the graduate account are quite clear.

    To enjoy the benefits of our Graduate Account, you'll need to either to be working or have a confirmed job offer. You'll also need to use your graduate account as your main account -paying in your salary each month.


    Which you have not been doing. Your problems with them should be left in the hands of the ombudsman to sort.

    You are the one who kept using the overdraft, even though you had no salary going in, they did not force you to do it. They now want you to pay it back, because you've broken the agreement and are not using it as your main account, whilst still helping yourself to funds.

    Perhaps if you didn't speak to people like crap on your shoe they wouldn't reply to you in such a manner. You wrote a crummy first post to me and now because I haven't welcomed your crummy first post with glee you've called me a moron. You've really got this help and advice thing down to a tee haven't you?


    You can't 'leave it with the ombudsman'. The ombudsman don't deal with it to begin with they give the bank a set period to 'resolve' the problem and if they can show that they have resolved the problem in that period then it isn't further investigated. A special department within Santander deals with these situations and the first time they told me and the ombudsman the problem had been resolved during this period - case closed with the ombudsman. It then transpired the case had not been resolved and false information had been placed on my file. I went back to the ombudsman who raised a second new complaint (as the previous one had been closed) and I was referred back to the same department who resolved it properly this time.

    Considering Santander lost documents with my personal details on them not once, twice but three times including documents sent by recorded delivery I'd prefer not to leave my full salary with them in case they lose that as well. If I could have paid off the overdraft sooner I would have, I haven't ever had the money to do that so I stayed at the end of it where I was from the middle of my final year.

    I'm asking if anyone has had to pay off a graduate overdraft in installments instead of in the full amount and, if so, has this affected their credit rating? Is that a question you can answer??
  • ThrugelmirThrugelmir Forumite
    89.5K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    rozmister wrote: »
    I am going to call them to discuss this because I don't have the money but I was wondering will this wreck my credit rating?

    Overdraft usage will score heavily against you when other financial institutions score you when you apply for other products.

    Best to leave emotion behind when dealing with financial matters. Whatever your previous experience. Santander in this instance hold all the cards. Don't expect any other bank to act any differently.
  • rozmisterrozmister Forumite
    675 Posts
    Thrugelmir wrote: »
    Overdraft usage will score heavily against you when other financial institutions score you when you apply for other products.

    Best to leave emotion behind when dealing with financial matters. Whatever your previous experience. Santander in this instance hold all the cards. Don't expect any other bank to act any differently.

    Thanks ill try and pay them back as quickly as possible. At present my finances aren't good enough to offer them a lot because the cost of running the car I use to get to work (around a third of my salary) is crippling me but this is why I've got a new job closer to home so hopefully ill be able to give them more soon.

    Would it be worth taking a loan to clear the debt? My friend suggested this but I've been reluctant because I think its robbing Peter to pay Paul and could mean I end up paying significantly more depending on interest rates.
  • rozmisterrozmister Forumite
    675 Posts
    I phoned them this morning and they said if I set up a repayment plan to pay back the full amount of my overdraft over 20 months and make the payments on time there will be no impact on my credit rating. I have 48 hours to decide if I want to do this and call back with full financial details (for the affordability calculator). This will mean paying them £100 a month but I figure that if it is the best way to go about it I'll do that.
  • izoolsizools Forumite
    7.5K Posts
    You won't get any help by acting like a moron.

    Maybe you should read your own posts? With the terms and conditions set out very clearly for your own account? That would be a start wouldn't it?

    May explain some of the reasons you have been having problems.

    The terms of the graduate account are quite clear.

    To enjoy the benefits of our Graduate Account, you'll need to either to be working or have a confirmed job offer. You'll also need to use your graduate account as your main account -paying in your salary each month.


    Which you have not been doing. Your problems with them should be left in the hands of the ombudsman to sort.

    You are the one who kept using the overdraft, even though you had no salary going in, they did not force you to do it. They now want you to pay it back, because you've broken the agreement and are not using it as your main account, whilst still helping yourself to funds.

    Just because someone doesn't give you the answer you like, or want, does not mean they have not answered you.

    I hate to say it tinkerbell but this still has nothing whatsoever to do with what the OP asked.

    The OP has admitted not using the account as per the T&C. Granted, their attitude of "they didn't comply with the terms / regs so why should I?" is pretty damn awful, but not the point at hand.

    The point at hand is that should OP choose to accept Santander's offer of paying their £1,500 in 36 equal monthly installments, how would this appear on their credit file?

    As a current account that is up to date?
    As a loan?
    As an arrangement to pay?
    As arrears?
    As a default?

    That's all they're interested in knowing the answer to.

    Unfortunately OP, we can't tell you. Santander should be able to tell you but seem woefully inept at answering yet another basic question.

    I would suggest accepting their offer and starting to make your payments to clear the OD, but also write to them asking for a clear and detailed explanation as to exactly how this will appear on your credit file - perhaps directly asking the questions I typed above.

    Good luck! :beer:
    Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
  • edited 31 July 2013 at 10:37AM
    rozmisterrozmister Forumite
    675 Posts
    edited 31 July 2013 at 10:37AM
    izools wrote: »
    I hate to say it tinkerbell but this still has nothing whatsoever to do with what the OP asked.

    The OP has admitted not using the account as per the T&C. Granted, their attitude of "they didn't comply with the terms / regs so why should I?" is pretty damn awful, but not the point at hand.

    The point at hand is that should OP choose to accept Santander's offer of paying their £1,500 in 36 equal monthly installments, how would this appear on their credit file?

    As a current account that is up to date?
    As a loan?
    As an arrangement to pay?
    As arrears?
    As a default?

    That's all they're interested in knowing the answer to.

    Unfortunately OP, we can't tell you. Santander should be able to tell you but seem woefully inept at answering yet another basic question.

    I would suggest accepting their offer and starting to make your payments to clear the OD, but also write to them asking for a clear and detailed explanation as to exactly how this will appear on your credit file - perhaps directly asking the questions I typed above.

    Good luck! :beer:

    Thank you I don't know a lot about credit ratings so it's really helpful to see the different things it could be listed as. I'll ask them to explain it in more detail using what you've said later.

    Although the letter I received said I could make payments for 3 years they have said I can only have 20 months to clear the outstanding balance and it must be the full overdraft (which is £2000) so I would pay them 20 x £100. I'm happy to do this provided that it will definitely mean the smallest possible amount of damage to my credit rating. I don't feel very comfortable trusting them on this though and I'd prefer to see it in writing like you suggested.

    I know my attitude stinks, I spent over 100 hours trying to sort out the same problem with Santander over an 18 month period and it's clouded my attitude towards them quite strongly. I'm happy to pay them back an affordable amount and I've no intention of trying not to (unlike some of the posts I've seen on here) but I haven't complied with the T & Cs because of the ill will I feel towards them which means I am not happy to trust them with my money.
  • izoolsizools Forumite
    7.5K Posts
    rozmister wrote: »
    I know my attitude stinks, I spent over 100 hours trying to sort out the same problem with Santander over an 18 month period and it's clouded my attitude towards them quite strongly. I'm happy to pay them back an affordable amount and I've no intention of trying not to (unlike some of the posts I've seen on here) but I haven't complied with the T & Cs because of the ill will I feel towards them which means I am not happy to trust them with my money.

    I understand how you feel, and unfortunately you will feel this way about certain financial institutions all the way throughout your life.

    I would however suggest an alternative approach - using their rules against them - always having a fallback - never having to depend solely on the facility they have offered you - never having a single point of failure.

    Also using their complaints procedure and the Financial Ombudsman's complaints procedures to the full applicable extent when things go awry, use the law to your advantage, hit them where it hurts.

    But certainly don't leave yourself in a vulnerable position again like you have with Santander whereby they stand to do far more damage to you than you have a hope in heck doing to them.

    One thing to consider is that if you currently have a good creditworthiness is an MBNA card - whereby you can do a "Super balance transfer" - e.g. pay off your overdraft with the credit card - and pay no interest for however long.

    MBNA are the best provider to go to for a SBT - a balance transfer to a bank account instead of another credit card - most card providers don't offer this facility.

    Good luck! :o
    Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
This discussion has been closed.
Latest MSE News and Guides

Iceland's helping struggling pensioners

It's giving out free £30 food vouchers

MSE News

Who can suggest a top-notch bed?

This Forumite's mattress is in need of a base

MSE Forum

The Forum 'Ask An Expert' event

Ask your energy questions by Wed 5pm

MSE Forum