Disaster with Santander, need advice!

silverbanana

Hey there,

Sorry if I am a new poster, I didn't know where else to turn for advice!

I will try and sum it up in a few sentences:-

1) I had a student account with Halifax for £3000
2) When the interest-free period ended, I have been paying £65 a month.
3) I decided to move banks (using the 7 day switch service everyone is promoting lately!), and applied for Nationwide. They accepted my account but told me they couldn't give me an overdraft, so didn't proceed with the switch.
4) I applied to Santander Every Day Current Account because they promote it as an overdraft account and have an "Overdraft Matching Service". Account got approved and they asked for my ID, etc.
5) 5 days in to the 7 day switch, they inform me that my overdraft offered is NIL. Try to cancel the switch as obviously I will want to keep Halifax but they no longer can, and Halifax confirmed the account will be closed and I will have 30 days to pay the 30 day overdraft or apply for a new account with Halifax (but no guarantee of the same overdraft).

I feel like this isn't a problem foresaw by the 7-day switcher service. I feel Santander have screwed me over, when I filled in the application it asked me what my current overdraft is and what overdraft I want from them, and everything got approved. It was only a letter five days into the switch when it's too late to cancel that they inform me there will be no overdraft.

I have written the following complaint but could appreciate any other advice that can be offered! The whole point was to reduce my spend and focus on clearing the overdraft off, now I am going to be more out of pocket than when I started.

To whom it may concern:

I wish to register a formal complaint for investigation by the complaints department for Santander, with my intention to pursue this matter through the Financial Ombundsman and/or through civil courts for the reasons I have summarised below.

* I have been banking with Halifax Bank plc. since 2006 (my student account opening in 2008). During this time, whilst I was a student, I acquired an overdraft facility of £3,000.

* Since August 2013, I have been paying interest on the said overdraft which varies from £3 to £2 a day depending on my debit balance at the time. The maximum I pay for my overdraft facility is £64 a month.

* I decided, in December 2013, to switch my account to a bank which offers a lower rate of interest/charges whilst I slowly reduced the balance to credit.

* I applied for a Santander account online using the 7-day switch service on 29th December 2013. During this application, I informed you my overdraft balance of my existing bank is £3,000 and I requested an overdraft facility of £2,750 with Santander.

* On 30th December 2013, I received an email updating me on my application, requesting I sent you identification. I requested paper bank statements from my current bank, supporting this application.

* On 22nd January 2013, I received an email from Santander stating "pleased to tell you that your application was approved and your account has been opened".

* On 27th January 2013, I received a letter from Santander confirming the same, however this letter also included the following paragraph:-

"Your new Santander account normally comes with an agreed overdraft facility. However, we regret that you are not currently eligible for the overdraft facility that is available with this product. Should your circumstances change in the future you may apply to us to request an overdraft facility from Santander on your account and if you are eligible you will be approved for a facility. In determining your eligibility for an overdraft facility we consulted the following credit reference agency: -Experian Credit Report Services, PO Box 1135, Warrington, WA55 1EP, 0844 481 8000".

* On January 28th 2013 at 19:12h from my mobile phone XXX, I called Santander to stop the switch, which had already began motion. I was informed the Switching Department was closed and given an alternative number to call from 8am the next morning. I explicitly asked for confirmation that the switch would be able to stop and was informed by a supervisor/team leader/manager it would. I called my bank immediately after to ask them to stop the switch, but informed only Santander would be able to do this.

* On January 29th 2013 at 09:50h from my mobile phone XXX, I called Santander to proceed, but informed I was unable to stop the switch.

I am unhappy, stressed and perplexed that Santander have in effect, accepted and rejected my application and feel there has been a breach of contract. I asked for a specific product from Santander, making this explicit through-out, and had Santander not been able to provide me with the product I requested, should have been informed prior to completing the switch. Understandably this is going to cause me financial uncertainty and my switch to Santander will leave me out of pocket.

I would like you to resolve this matter to a mutual satisfaction in one of the following three ways:-

* Provide me with the overdraft I originally requested, for £2,750. I have managed my overdraft with Halifax Bank for 6 years and never defaulted on a payment. All my other financial matters are in healthy standing, and therefore I am perplexed that my application has been refused in the first place. OR -

* Provide me with a 12 month personal loan of £2,750 for a period of 12 months, OR -

* Close my account with Santander with immediate effect and I will pursue this matter with the Financial Ombundsman and/or through civil process as I have reason to believe Santander have not acted in good faith and breached the original contract I signed. Whilst I understand Santander might interpret the terms and conditions as an overdraft is an optional addition, which of course the bank is allowed to offer at their discretion, I certainly did not give Santander a mandate to close my existing account with my overdraft without transferring it to Santander and by proceeding with the switch you have caused me financial and emotional distress. I feel it is in the best interests to challenge this scenario to address what is, from my understanding, a scenario that hasn't been encountered since the 7-Day Switch was rolled out in September 2013 and other customers should not experience this distress and negligence.

I look forward to your reply.

Archi_Bald

You should edit your post to remove your mobile number.

As to the issue you are in - it was right to appeal to Santander though they are unlikely to be in breach of contract as you say. I doubt you had at any stage anything in writing from Santander that said your overdraft application had been approved.

The 7-day switch guarantee does not include any guarantee for overdrafts. http://www.simplerworld.co.uk/Pages/FAQ.aspx

Have you checked your Experian credit report, which Santander referenced as the reason for the rejection of your overdraft application? It could contain incorrect information.

silverbanana

Thanks for the advice! Removed the mobile number.

I feel like they have acted in bad faith because they told me my application was approved. As the application requested the overdraft - I would have assumed this is Santander saying we allow it, as they have been advertising the 'Overdraft Matching Service'.

It's really unfair when they know I cannot cancel my switch to then renege on the overdraft.

I downloaded my Experian report this morning! That's bad, 347 Pts - Very Poor.

Negative reasons are:-

1 Positive factors
You have a significant number of successfully settled credit accounts

6 Negative factors
You have an account regarded as defaulted or delinquent < Virgin Media, long story but is only £100 if they want it back they can have it back!
The age of your accounts indicates lenders are likely to view you as higher risk
The usage of your available credit indicates a higher risk < This would be the overdraft!!!
You are not on the Electoral Roll as a current occupant at your current address.
You have a significant number of recent searches on your credit report < This is me trying to find a new bank!!!
The value of your highest credit limit indicates a higher risk. < The overdraft!!!

My point is, I have been servicing an overdraft for years, and keep up on all my payments. I have a good salary coming in each month too (£2,100 a month after taxes etc).

But that's not why I am angry, if they don't want to offer me the overdraft that's okay, but not open a new account and close my old one. That wasn't the agreement, implied and written.

TheEffect

dessler wrote: »

Thanks for the advice! Removed the mobile number.

I feel like they have acted in bad faith because they told me my application was approved. As the application requested the overdraft - I would have assumed this is Santander saying we allow it, as they have been advertising the 'Overdraft Matching Service'.

It's really unfair when they know I cannot cancel my switch to then renege on the overdraft.

I downloaded my Experian report this morning! That's bad, 347 Pts - Very Poor.

Negative reasons are:-

1 Positive factors
You have a significant number of successfully settled credit accounts

6 Negative factors
You have an account regarded as defaulted or delinquent < Virgin Media, long story but is only £100 if they want it back they can have it back!
The age of your accounts indicates lenders are likely to view you as higher risk
The usage of your available credit indicates a higher risk < This would be the overdraft!!!
You are not on the Electoral Roll as a current occupant at your current address.
You have a significant number of recent searches on your credit report < This is me trying to find a new bank!!!
The value of your highest credit limit indicates a higher risk. < The overdraft!!!

My point is, I have been servicing an overdraft for years, and keep up on all my payments. I have a good salary coming in each month too (£2,100 a month after taxes etc).

But that's not why I am angry, if they don't want to offer me the overdraft that's okay, but not open a new account and close my old one. That wasn't the agreement, implied and written.

With that credit report, I'm surprised you even got a bank account, let a lone an overdraft, and I highly doubt any bank will give you any credit right now.

A default will likely stop you from getting an overdraft/credit card, let alone the high amount of searches and debt/availability. Also, not being on the electoral roll can result in a declined application alone.

I suggest you contact Halifax and arrange a repayment plan with them. Avoid getting any more credit for the foreseeable future and start to get your credit report back on track, by contacting Virgin, getting on the electoral roll and not applying for any more credit for a while.

danthemoneysavingman

DO note they didn't "renege" on the overdraft, as per previous post:
The 7-day switch guarantee does not include any guarantee for overdrafts. http://www.simplerworld.co.uk/Pages/FAQ.aspx

Though agree they have dropped you in the proverbial.

What happens with your halifax account if you DON'T settle the OD in the 30 day period? Worth checking into this I would suggest.

silverbanana

Sorry, I'm thinking commercially I guess.

It's like, if you are doing business with X, and then propose an offer with a rival business Y, sign a contract because you're happy but then business Y make a significant change to the contract which would mean I wouldn't want to transfer my business, but it's too late, this is something unethical and needs to stop.

The 7-day switch should be void if they can't match the overdraft like they advertised. It's reasonable to expect that I wouldn't want to switch my account for any other reason.

With that credit report, I'm surprised you even got a bank account, let a lone an overdraft, and I highly doubt any bank will give you any credit right now.

Well I know that, but it shouldn't be in 'Very Poor'. Pointless me complaining about it but if I have a history of good credit (ie. I pay companies always, I pay fees always, never ever defaulted in my life except Virgin), I don't see why it should be 'Very Poor'. Three of it is the overdraft I'm trying to be a good boy and move and reduce, one is a disagreement with a company about a bill, and the other two are just trivial technicalities!

danthemoneysavingman wrote: »

DO note they didn't "renege" on the overdraft, as per previous post:
The 7-day switch guarantee does not include any guarantee for overdrafts.

I know that, but that's not the website I looked at. I looked at the advertising on Experian, the advertising on U-Switch where Santander told me they do an overdraft matching service, and when they approved my application - that's implied that the terms I put in were fine.

If they don't want me to move my overdraft and pay fees with them, they should contact the customer, like Nationwide, not proceed regardless.

TheEffect

dessler wrote: »

Well I know that, but it shouldn't be in 'Very Poor'. Pointless me complaining about it but if I have a history of good credit, I don't see why it should be 'Very Poor'. Three of it is the overdraft I'm trying to be a good boy and move and reduce, one is a disagreement with a company about a bill, and the other two are just trivial technicalities!

But you do not have a history of good credit. You have defaulted on a credit account, have massed up a large amount of searches (which looks like you're desperate for credit, which you are), your accounts aren't very old meaning banks cannot get a good long picture of how you use/pay credit, you aren't on the electoral roll which has many problems, etc.

Did you read the T&C of the 7 day switch and overdraft matching service. I'm betting they state that overdraft matching is not guaranteed and is subject to status.

My advice, stop blaming other people (banks), and start dealing with the problem that you've got yourself in. Contact Halifax, explain your situation and work something out with them, like a payment plan, before you default on another credit product.

silverbanana

TheEffect wrote: »

But you do not have a history of good credit. You have defaulted on a credit account, have massed up a large amount of searches (which looks like you're desperate for credit, which you are), your accounts aren't very old meaning banks cannot get a good long picture of how you use/pay credit, you aren't on the electoral roll which has many problems, etc.

Did you read the T&C of the 7 day switch and overdraft matching service. I'm betting they state that overdraft matching is not guaranteed and is subject to status.

My advice, stop blaming other people (banks), and start dealing with the problem that you've got yourself in. Contact Halifax, explain your situation and work something out with them, like a payment plan, before you default on another credit product.

No, there is nothing in the T&C about overdraft matching service - I have asked Santander to clarify what that actually is.

My advice, stop blaming other people (banks)

I can't blame myself, I've done nothing wrong but try and improve my situation. This time last week I was fine, I had an overdraft and was managing a way to pay this off. Now I have been left in a financial mess.

If you can't offer any constructive advice to help me, then please don't try and rile me with troll comments.

E.g. refer me to the Notice of Correction I can put on my credit report regarding the Virgin Media default, which I just found out.

TheEffect

dessler wrote: »

I can't blame myself, I've done nothing wrong but try and improve my situation.

If you can't offer any constructive advice to help me, then please don't try and rile me with troll comments.

I did offer constructive advice. You just chose not to acknowledge it/didn't want to hear it.

"My advice, stop blaming other people (banks), and start dealing with the problem that you've got yourself in. Contact Halifax, explain your situation and work something out with them, like a payment plan, before you default on another credit product."

BMN

dessler wrote: »

No, there is nothing in the T&C about overdraft matching service - I have asked Santander to clarify what that actually is.

I can't blame myself, I've done nothing wrong but try and improve my situation. This time last week I was fine, I had an overdraft and was managing a way to pay this off. Now I have been left in a financial mess.

It is a result of your own actions though.

Whether they give you an arranged overdraft is dependent on your circumstances. It certainly isn't guaranteed and this is clearly communicated.

Where did you hear about the "Overdraft Matching Service". Do Santander even use this terminology?

Archi_Bald

BMN wrote: »

Where did you hear about the "Overdraft Matching Service". Do Santander even use this terminology?

They do. http://dr.www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&canal=-1%27&cid=1237851829604&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateW2

Though it's a "service" rather than a "guarantee", and "Overdrafts depend on your circumstances".