Santander won't close partially settled account

uphillstruggler

Hi everyone,

I've recently settled a small overdraft with Santander at 40% of the £600ish balance. I am currently paying token payments to 4 other creditors.

When I received no confirmation of closure of my account or letter confirming the payment/settlement/default, I called them (more than a few times) and they tell me they cannot close the account as it is partially settled. I am now worried. Surely they can claim the full amount at any time? Or am I just being paranoid? I have asked for a letter confirming payment of the settlement but they say they have no proforma letters on their system for this.

If anyone has any advice or experience here I'd be grateful. I don't want them turning around in 10 years and demanding the rest from me. I also don't understand why they can't close the account.

Thank you,
US

fermi

What does the settlement offer letter they sent you before you paid say? If that is clear then there should be no bother, or at least none that can't be sorted if it somehow does get passed on.

Also, what does this show as now on your credit file?

uphillstruggler

Thanks for your reply.

Not sure what it says on my credit file yet - that's this afternoon's job.

The only letter I have does not state the settlement amount but it does say "you will no longer have any further liability to pay the remaining balance and we will not request any further payment". That's good. But it also says "If you decide to pay the remaining outstanding balance at a later date, an update would be provided to credit reference agencies to show the debt as satisfied, although the default information would still remain for 6 years". In hindsight this was handled badly from my part and in my haste to take them up on their 40% offer I just wanted to hand over the money and didn't stop to check the paperwork was all in order and make sure the account was closed.

Confused.

matttye

uphillstruggler wrote: »

Thanks for your reply.

Not sure what it says on my credit file yet - that's this afternoon's job.

The only letter I have does not state the settlement amount but it does say "you will no longer have any further liability to pay the remaining balance and we will not request any further payment". That's good. But it also says "If you decide to pay the remaining outstanding balance at a later date, an update would be provided to credit reference agencies to show the debt as satisfied, although the default information would still remain for 6 years". In hindsight this was handled badly from my part and in my haste to take them up on their 40% offer I just wanted to hand over the money and didn't stop to check the paperwork was all in order and make sure the account was closed.

Confused.

Did they at one point say you only had to pay 40%, in writing? If so there's nothing wrong with the way their letter is worded, but if you deposit any money into the account they may still be able to use their 'right to set off.' Not 100% sure about this, hopefully someone else can confirm.

uphillstruggler

No, there is no mention of the amount or the % on any correspondence from them.

matttye

uphillstruggler wrote: »

No, there is no mention of the amount or the % on any correspondence from them.

That could be a problem if they say they agreed 80% or something.

Just keep your fingers crossed that they stick to their word.

For future reference, you can still bite their hand off even if you ask for the agreement in writing. E.g. "Thanks for the generous offer, which I'm very happy to accept. Please confirm the offer in writing and I'll pay on receipt of this."