Help With Default Removal?

winjad

Hi all

Apologies for the long post but I have been lurking/reading for a quite a while now and wondered if somebody could explain in laymans terms if there's any chance of me having a default removed from my credit file as I can't really make sense of all the jargon?!


I had a student account with Santander that had a maxed out £2000 overdraft.

I had been reducing it slowly after graduation and managed to reduce the limit to -£1000 with a £350 cash deposit (which was a large sum of money to deposit into the account at that time).

Only a few days later I went to New York and couldn't make a payment on my current account debit card (I'd forgotten to notify the Halifax that I was going abroad) thus used my Santander card - completely forgetting that I'd actually reduced the limit after making the deposit.

This transaction went through fine, and shortly after I received a letter to say my interest free graduate/student account had been changed to a current account, and I needed to pay back the overdraft immediately and would be accruing charges and interest until it was paid back in full.

After finishing university I was only able to find work part time at a bar. So I set up a £50 a month payment plan.

A handful of times I knew I would struggle to be able to make the payment but I always called the bank to let them know either prior or on the due date to make alternative arrangements and this always seemed satisfactory.

Santander have sent a trasnscript letter, outlining they would have told me at the time of the calls that it could effect my credit score but I don't recall this.

I struggled to clear this account in full, and felt I had done well in doing so, particularly having started to clear the account so soon after graduation - only to find out so many months later that the account that it had been registered as a default.

The only reason I am even aware of the default is because a finance company declined my application. I then used a credit reference agency (Experian) to get an explanation and the result came back that I had a default that I was not aware of.

I've received a FRL from Santander instructing to go to the FOS, which I will. I'm just wondering if anyone has any idea on my chances with this one?

I received no default notice, and there is no 'D' on my credit score? In fact, there is no '1, 2, 3' it goes straight from solid green ticks to '5, 5, 6, 6' - which are the four months immediately after the account changed and I had to pay back the £350 to get out of my unplanned overdraft and THEN start the payment plan.

As a student who'd just graduated from a fashion degree (not cheap) on a part time bar wage I find this to be unfair treatment. My account was managed well prior to the overdraft reduction and managed well after the three or four months where I struggled when the account changed over. I don't actually know why it was changed to a current account?!

The account is now settled and has been for over 12 months, but remains open (but unused).


Any advice at all would be incredible, I don't really have anyone to break this down to me in layman's terms… my mum's advice was 'well you just learn about these things along the way'. Sure… one default in mum!


It's extremely frustrating as my credit score is actually ranked 'good'.


Many thanks in advance! I really appreciate any advice, no matter how little


W

happy_bunny_2

Hi,

you don't get default notices on overdrafts, as not regulated by the same part of the CCA as credit cards etc. When they demand it back say in 30 days and you don't pay, that should be the default date. they ought to tell you its going to be defaulted mind.

When is the default date? I guess its correct?

Why did they change it to a current account? Was that as per teh T&Cs of your student one?

"Santander have sent a trasnscript letter, outlining they would have told me at the time of the calls that it could effect my credit score but I don't recall this."
What they 'would' have told you or 'did'? Many people are not correctly told what impact actions will have on their credit file entry by banks. Does not mean they did tell you?

How can the account be open if its defaulted? makes no sense...

You can take to the FOS, there are cases where they unfairly reduce overdrafts in a short time. Its free, so nothing to lose.

HB

winjad

I don't know why they changed it, there was no reason - just a letter to say it would be changing.

Again I don't know the defaulted date, I'm waiting on a SAR, but it doesn't appear on my Experian account, just the 5, 5, 6, 6.

The account is open? I was advised by Experian to leave it open for at least twelve months after the debt was settled (it's now been about 15). They told me I had a delinquent account which was blocking any credit applications and when I spoke to Santander they referenced the default?

Somebody mentioned a BCOBS to me, do you think this would be helpful?

Thanks happy_bunny!

happy_bunny_2

BCOBS?

SAR results may be useful...

winjad

this?

bbc.co.uk/news/business-19511542

I can't really make head nor tail of how to go about it though

Candyapple

winjad wrote: »

I don't actually know why it was changed to a current account?!

It's usually standard practice that once your course has finished your student account reverts to a normal current account.

Article here

happy_bunny_2

winjad wrote: »

this?

bbc.co.uk/news/business-19511542

I can't really make head nor tail of how to go about it though

Well, looking at that link, try quoting that in any complaint to the FOS first, as that's free. After that. You are in small claim court territory and this may help:
http://legalbeagles.info

winjad

double post

winjad

winjad wrote: »

Candyapple wrote: »

It's usually standard practice that once your course has finished your student account reverts to a normal current account.

The agreement was 12 months interest free as a graduate account, it changed after about 5 months

winjad

So Santander have replied to my DSAR request saying they cannot find my account (lies) and are not obliged to send me any information. Anybody any clue where I can go from here?

Thanks!

fermi

Complain saying you have provided them with the details of an account they without doubt hold, and a copy of a credit file enrty showing the same.

That is they continue to breach their duties under the DPA to provide detail via the SAR, then you will be reporting them to the ICO, taking them to the FOS, and will consider seeking an order from the County Court to force their compliance with the SAR.