Problem with Capital Repayment at Santander - Advice pls.

paulalou76

Every few months or so I pay a small sum off my mortgage as a capital repayment. I've never had any problems until now.

On the 27th Jan I went into my local Santander branch and made a capital repayment, I am not over my yearly 10% limit allowance. My monthly direct debits come out of my account on the 1st of each month. This month (Feb) I noticed that no payment had been taken so I called Santander. They said that because my capital repayment had occurred so close to the date of my direct debit it was assumed 'by the system' it was the money for my monthly direct debit even though the chap on the end of the phone could see it was marked as a capital repayment.

I'm a bit narked about this as now the total owed on my mortgage hasn't gone down, although the chap did say the interest had stopped accruing. I have contacted them via their complaints webpage but haven't heard back. Has anyone got any advice/comments on this matter as they obviously haven't followed my instructions even though the payment is clearly marked as a capital repayment. Should I be complaining to a higher body (whatever the FSA has now split into)?

Keekles

I think it's a little early to be taking a complaint to the Ombudsman. How long ago did you submit a complaint via Santander?

I would imagine it's something they can deal with internally as an error on their part and a little surprised the 'chap on the end of the phone' didn't deal with it himself, unless for some reason he was unable to; in which case he could've referred it undoubtedly.

Ultimately they will try to be reasonable and rectify it; if you suffer a loss financially you'll have to be able to prove it to the Ombudsman for a claim to be successful.

Perelandra

Can you not make an additional overpayment this month, as the amount that the DD would have been? This will achieve much the same end result that you should have been in, and be less stressful?

rippers255

I agree - just make another payment. Job done. Life's too short to worry about a few days interest.

Goldiegirl

Yes, I agree, just make another payment now.

Also, now you know how their systems work, you can avoid making your future part repayments near the due date of your mortgage monthly payment.