Can't repay student overdraft (santander)

caprichosa

I had a student overdraft with Santander of around £2000. One of the conditions of having it was that I use the account as my main account. However I used my 123 account predominantly.

Once I finished uni, I was sent several letters to my uni address telling me that I had to use it as my main account or they would withdraw the overdraft. I never received the letters and they knew I never received them because they told me the letters were returned to them. I have online banking, they have my email and mobile but they never tried to contact me on any of these. This was partially my fault as I had forgotten to change my address when I left uni (mainly because I never get anything in the post from them anyway as all my statements are paperless).

So, I call up about the charges I noticed online and they tell me they can't help, I'll have to go into branch. I do that. They tell me they can't help and let me use their phone to call their debt recovery agency. They tell me I must pay off £100 a month. I agree but tell them I'm in temporary work.

Fast forward 3 months and it turns out the woman I spoke to gave me an incorrect figure which meant I hadn't put enough in the account so they charged me again for an unauthorised overdraft while the extra money was put in. I have yet to call them about this. The month before, they reduced the overdraft by £200 instead of £100 - it's all a catalogue of them not having a clue what they're doing it would seem.

I am now no longer working as I start a postgrad course in Jan. I have no income and the total amount in my 123 account is now £1050.72. I can't afford to continue to make payments, I can't afford to pay off the total amount and I pretty much can't afford my postgrad course either.

Is this the point where I declare bankruptcy because I can't pay the 'debt' (which should have been interest free for 3 years after graduation in any case)? I know this is a last resort but I have no means of obtaining the rest of the money short of robbing a bank and spending the rest of my life in jail...:(

happybunny86

Declaring yourself bankrupt for that amount seems a step too far ahead to me. I would ring them again and explain the circumstances and offer them an amount you can afford to pay. I would also put that in writing.

If they aren't helpful I would ring step change and ask them to help facilitate an agreement based on your current circumstances.

Pixie5740

You should always tell your bank when you move. What if you are sent a new bank card and PIN and it goes to an address you're no longer at? Your overdraft would have been interest free if you used it as your main account but you didn't so it wasn't. Now you are where you are.

Since all your money is with Santander and it's Santander you owe money to you should withdraw your money and put it in a new current account with a totally different bank or building society. Santander could raid your 123 account to repay the debt on your student account.

Meatloaf1981

I would question the wisdom of starting a Postgrad course knowing I had no money with which to do so, but that's just me and completely by the by.

Is there no family member who can help bail you out? Whatever you do, do NOT borrow more in order to pay this off (Such as a loan etc.)

Armorica

How are you planning to fund yourself during the post-grad course?

From San's perspective, I'm not surprised if they close both accounts and call in the debts (after off-setting your +1k against the -1k). You failed to update your address; you've somehow managed to have two accounts with them (most would insist on a current or student/graduate account - not both); you don't seem to have a plan of how to repay the debt.

You don't say when you finished university - was it in 2014, or a previous year?

greensalad

Life lessons learnt:

1. It's your responsibility to update your address with as many organisations as you can remember. Your bank being the most important one by far

2. It's safe to assume that banks will ALWAYS specify you use the account with the overdraft on. Use it or lose it, pretty much. I don't know any banks that DON'T work like this, so in the future assume you always must use it.

3. When discussing important things like this with organisations ALWAYS do it in writing. Always. If you end up speaking to someone directly, get it in writing before you declare it sorted. It doesn't mean anything unless it's on a piece of letterhead paper, I say.

4. Don't start a course you cannot afford to complete. You're better off taking the year off, getting a small local job and paying this amount off. Then you can start your postgrad next year.

caprichosa

Hi again. Thanks everyone for your posts. And especial thanks to happybunny86 and Pixie5740 who gave some really great advice.

To answer some of the questions

Armorica wrote: »

(after off-setting your +1k against the -1k).

The overdraft, I believe I stated, is actually £2000 - so even if they do that, I can't pay it.

You don't say when you finished university - was it in 2014, or a previous year?

I finished university in July 2014. I graduated in October 2014.

How are you planning to fund yourself during the post-grad course?

I have full funding for the fees and accom because I got a scholarship from Cambridge to do it. The part I can't afford is the living expenses (like food etc.).

To those of you saying 'why would you want to do this' - well, it isn't every day you get postgrad funding for an arts subject from Oxbridge so that's why.

Is there no family member who can help bail you out?

In short, no. I don't have any contact with my parents so the only option would be to ask my boyfriend who is still studying himself.

When discussing important things like this with organisations ALWAYS do it in writing.

I know this and actually when I last spoke to them about them reducing the overdraft by too much, I requested a letter to say how much they were taking and on what date so they couldn't do it again. I got a letter. But the letter merely said 'hi, you have a reducing overdraft.'

I can't force them to write what I want them to or even give me the information I want them to.

Frankly it seems astonishing that any of them even work in finance given the absolute mess they have made of correctly enforcing the reducing overdraft (me being able to pay it or not from this date aside).

On_my_way

Hi

You don't need to declare yourself bankrupt and you would not do that unless you absolutely had to.

Instead you will have to find a way of increasing your income and being very, very careful with your money to make sure that you can pay them what you owe as soon as possible. It's not huge figures that you owe so a bit of study on this site should sort you out in no time at all.

Good luck

On_my_way

"Frankly it seems astonishing that any of them even work in finance given the absolute mess they have made of correctly enforcing the reducing overdraft (me being able to pay it or not from this date aside).[/QUOTE]"

- Not really - you borrowed the money so the onus is on you to make sure that it is paid back, for you to make sure that they have your correct address etc.

You have to take responsibility for this.

happybunny86

Have you tried ringing them to sorted out a monthly payment?

Even a token amount like £50 a month may get them your back. You can always follow up with a letter so you have it in writing.

I would explain you will be forced to speak to a debt management charity if not. Let us know how you get on