default

vikster2_2000

Hi,

I'm sorry if this has been asked/answered but I really need some help, for the interest of keeping it unbiased I will not name any banks involved. However if you wish to know in order to better answer my question I am happy to respond to a private message.

I have a default on Student Current Account for an unpaid overdraft.

While at University I had a student account with an overdraft. During my University years it was quite healthy with money going in and out. However after my last term I was unemployed for 9 months. During that time I had no money coming in, the little money I did have was paid into another account which I had a car loan coming out of so the money needed to be paid into that, I never missed a car loan payment.
So yes I admit I allowed my student account to be inactive for a few months (I just didn't think, I was below my overdraft limit, and because I had no money coming in I didn't use it as I couldn't replace that money, it was close to the limit but not enough to be of much use).
The next thing I know I receive a letter from the bank saying my overdraft has been cancelled and that I now owe this money (£1,497 on a £1,500 over draft limit). I know I was supposed to get a warning (the bank has told me that themselves) to say that due to inactivity it would be closed if nothing was put in in x amount of time. However no such warning was sent, the bank just cancelled my overdraft.
I rang them up because still being unemployed I couldn’t pay the amount in full so they agreed to a payment arrangement - so my account is still open and active and not in default. I receive a letter confirming this phone call and paid each month by the set date the agreed amount.
My circumstances then change and I get a job, so I inform the bank and the agreement is altered to a new amount as I can now pay more, again receiving a letter confirming this.
Unfortunately I was made redundant less than 3 months later, so I rang the bank again to update them on my new circumstances. I spoke to a nice man who says he understood that money may now be tight and so he has set up that the monthly amount of £0.00 was agreed until my circumstances change. Within a short period of time I received a letter from the bank confirming this arrangement.
Even so I receive yet another letter saying I haven't made a payment therefore if I do not pay action will be taken, so I rang the bank again and tell them I have this agreement in place. I am then told that no record of that agreement, letter or phone call is on the system (despite having the letter in front of me during this with the dates and the wording etc), and I'm asked to make a payment. So I set up yet another payment agreement, to be the same price as the initial agreement while I was unemployed after graduation from University
I pay this for 2 months, on time. In the 3rd month I pay the set amount through my other bank account, however it gets sent back. When I rang that bank to enquire why my payment couldn’t go through I was told that all they are aware is that the account and sort code I was trying to transfer the money into is invalid and doesn't exist.
At that point I rang the bank which held the supposed invalid account and was told by the person on the phone that they couldn’t get into my account not even being able to ask me my security questions as the account was closed. I was advised to go into the bank to speak to someone in the branch.
I promptly do that and speak to a polite lady who told me she also could not access my account to check the history, despite me having all the relevant letters and arrangements with me to check that a payment plan was indeed set up. However she did give me a phone number to ring.
Eventually I get through to someone in India who just informs me that my account has been closed and a default had been placed on it. They told me that they were not able to access the relevant section of my details to check if the payment agreement was actually set up, as the account was closed. As far as they were concerned not even their collections department could do so either and that my details had been passed onto their debt collection agency and that I should ring them.
I immediately ring them but they said my information hadn’t yet been passed over to them and therefore I could get no answers. 2 weeks later I receive the relevant information and can resume paying off my overdraft.
At present I am still making regular payments to the debt collection agency. I am also still trying to sort out my account because I am very dissatisfied, frustrated and annoyed that a default has been placed against me although I never missed a payment since the initial agreement was set up. I was also never warned that my overdraft was going to be cancelled, followed by my account being closed.
Each time I rang the bank I have been told there was never any record of my payment agreements or my phone calls. I continued to complain I finally received a letter from them which ruled in my favour. I rang them to ask for this default removed and to reinstate my account so I would no longer be paying the debt agency, but I was told I would have I speak to the debt agency myself. On speaking to them I was told it was the bank that would reinstatement my account, and take back the overdraft and agreement. Despite speaking to the bank this still has not happened.
Since then I have continued to pay the set amount agreed upon and have never been late with or missed a payment, despite this I understand the default is still on my account and will be for several more years although the bank say the account should never have been cancelled.
Today I rang the bank to my surprise I immediately clear security and the man I speak to can access my account, and has now been able to pass me onto the correct complaints department.

I am desperate for advice on how to get this default removed from my record as the bank have admitted they were at fault. It’s obviously having a detrimental effect on my credit status.

Am I correct in thinking that I do have a case to ask it to be removed? Baring in mind I have never missed or been late paying. Also I was never given any warning that any of this might happen.

Thank you in anticipation.

happy_bunny_2

vikster2_2000 wrote: »

Hi,

I'm sorry if this has been asked/answered but I really need some help, for the interest of keeping it unbiased I will not name any banks involved. However if you wish to know in order to better answer my question I am happy to respond to a private message.

I have a default on Student Current Account for an unpaid overdraft.

While at University I had a student account with an overdraft. During my University years it was quite healthy with money going in and out. However after my last term I was unemployed for 9 months. During that time I had no money coming in, the little money I did have was paid into another account which I had a car loan coming out of so the money needed to be paid into that, I never missed a car loan payment.
So yes I admit I allowed my student account to be inactive for a few months (I just didn't think, I was below my overdraft limit, and because I had no money coming in I didn't use it as I couldn't replace that money, it was close to the limit but not enough to be of much use).
The next thing I know I receive a letter from the bank saying my overdraft has been cancelled and that I now owe this money (£1,497 on a £1,500 over draft limit). I know I was supposed to get a warning (the bank has told me that themselves) to say that due to inactivity it would be closed if nothing was put in in x amount of time. However no such warning was sent, the bank just cancelled my overdraft.
I rang them up because still being unemployed I couldn’t pay the amount in full so they agreed to a payment arrangement - so my account is still open and active and not in default. I receive a letter confirming this phone call and paid each month by the set date the agreed amount.
My circumstances then change and I get a job, so I inform the bank and the agreement is altered to a new amount as I can now pay more, again receiving a letter confirming this.
Unfortunately I was made redundant less than 3 months later, so I rang the bank again to update them on my new circumstances. I spoke to a nice man who says he understood that money may now be tight and so he has set up that the monthly amount of £0.00 was agreed until my circumstances change. Within a short period of time I received a letter from the bank confirming this arrangement.
Even so I receive yet another letter saying I haven't made a payment therefore if I do not pay action will be taken, so I rang the bank again and tell them I have this agreement in place. I am then told that no record of that agreement, letter or phone call is on the system (despite having the letter in front of me during this with the dates and the wording etc), and I'm asked to make a payment. So I set up yet another payment agreement, to be the same price as the initial agreement while I was unemployed after graduation from University
I pay this for 2 months, on time. In the 3rd month I pay the set amount through my other bank account, however it gets sent back. When I rang that bank to enquire why my payment couldn’t go through I was told that all they are aware is that the account and sort code I was trying to transfer the money into is invalid and doesn't exist.
At that point I rang the bank which held the supposed invalid account and was told by the person on the phone that they couldn’t get into my account not even being able to ask me my security questions as the account was closed. I was advised to go into the bank to speak to someone in the branch.
I promptly do that and speak to a polite lady who told me she also could not access my account to check the history, despite me having all the relevant letters and arrangements with me to check that a payment plan was indeed set up. However she did give me a phone number to ring.
Eventually I get through to someone in India who just informs me that my account has been closed and a default had been placed on it. They told me that they were not able to access the relevant section of my details to check if the payment agreement was actually set up, as the account was closed. As far as they were concerned not even their collections department could do so either and that my details had been passed onto their debt collection agency and that I should ring them.
I immediately ring them but they said my information hadn’t yet been passed over to them and therefore I could get no answers. 2 weeks later I receive the relevant information and can resume paying off my overdraft.
At present I am still making regular payments to the debt collection agency. I am also still trying to sort out my account because I am very dissatisfied, frustrated and annoyed that a default has been placed against me although I never missed a payment since the initial agreement was set up. I was also never warned that my overdraft was going to be cancelled, followed by my account being closed.
Each time I rang the bank I have been told there was never any record of my payment agreements or my phone calls. I continued to complain I finally received a letter from them which ruled in my favour. I rang them to ask for this default removed and to reinstate my account so I would no longer be paying the debt agency, but I was told I would have I speak to the debt agency myself. On speaking to them I was told it was the bank that would reinstatement my account, and take back the overdraft and agreement. Despite speaking to the bank this still has not happened.
Since then I have continued to pay the set amount agreed upon and have never been late with or missed a payment, despite this I understand the default is still on my account and will be for several more years although the bank say the account should never have been cancelled.
Today I rang the bank to my surprise I immediately clear security and the man I speak to can access my account, and has now been able to pass me onto the correct complaints department.

I am desperate for advice on how to get this default removed from my record as the bank have admitted they were at fault. It’s obviously having a detrimental effect on my credit status.

Am I correct in thinking that I do have a case to ask it to be removed? Baring in mind I have never missed or been late paying. Also I was never given any warning that any of this might happen.

Thank you in anticipation.

You should start a new thread for this. Posting here is confusing.

It will depend on the terms and conditions, as if you break those you have defaulted. However, if the bank admit they screwed up then you might have a case.

What did they say exactly when they admitted fault?

You can refer to FOS after 8 weeks from initial complaint, but can take a few months to resolve.

Please start a new thread for this.

fermi

happy_bunny wrote: »

You should start a new thread for this. Posting here is confusing.

Already done for them.

vikster2_2000

Hi Happy_Bunny

Sorry about that, I wasn't sure if I needed to or not. Thank you fermi for making it a new thread for me.

The Bank said that they couldn't find the recording of my phone calls therefore they have decided to rule in my favour as I think the wording they used was a sign of good will. They told me over the phone however I asked them to confirm this in writing. I will confirm the exact wording as soon as I can.
Basically each time I received a letter about my overdraft I rang the bank immediately and was told to ignore the letters as this payment is in place and can clearly be seen on their system when they check. I do ask why then do I keep receiving these letters to which the response was - "it's another department who deal with the payment and the letter is generated from the collection department". I have the dates of the letters and then the record of the phone call on my phone bill, also I can provide (to the bank of course) statements showing the regular payments going out of my other account.
Also they state the amount due on each letter and that clearly goes down every time a letter was sent, showing that I had in deed been paying into it each month at the set date.

happy_bunny_2

Ok. Post back when you get the letter.

HB

vikster2_2000

Hi HB,

This is from their letter

"Following your discussion with Claire, we have tried location the call recording for your telephone discussion however, due to a system issue this has not been possible.

On the basis that we have been unable to obtain a copy of the call recording and clarify what was discussed, we are upholding your complaint. However please not that we would not have been able to agree a formal repayment plan at a rate of £x.xx per month, as this would not have repaid the account within a satisfactory timescale. I am also aware that you were unemployed at the time.

Subsequently, the closure of the Graduate Account was done so correctly, and in line with our internal recovery procedures and the Terms and Conditions of your account."

I know that I did indeed receive letters saying that full payment is needed every month - each time I rang the bank and they checked that a payment plan was in place (and had been accepted) and therefore I could ignore the letter...which I did until the next one when I went through the whole process again.

happy_bunny_2

So what did they uphold, that letter admits nothing other than they can't find a recording?

vikster2_2000

That's the thing they haven't upheld anything they just say "uphold my complaint" and that they cannot remove the default notice on my account.

That's why I am confused.

happy_bunny_2

If that is their final response, refer to FOS. They haven't answered any of your points.