Overdraft debt - any advice would be appreciated!

Vixenmark1

Hi

I had an overdraft debt with Santander that I was making monthly payments towards. During this time I moved house and told them in branch and via a letter. The branch said they had changed my address. I became a student and could no longer pay my monthly payment so I phoned them to tell them. It turns out they had increased the interest on my overdraft and sent letter to my old address which I never got, this has resulted in my debt increasing by £400 as my monthly payments were not covering the interest and I was getting extra charges every month. I started paying them a minimal payment each month and asked them to send any paperwork and bank statements to my new address. I have been going through paperwork today and found my Santander paperwork so I phoned them as I have not heard from them since April. They have informed me that they have sold the debt without telling me to Moorcroft Debt Collections. I actually received a call from them 3 weeks ago, they asked me for my date of birth and address. I had no idea Santander had sold this debt to them at this point so I refused to give my date of birth thinking it was a scam. I gave them my last three addresses and they said none on them matched so they would not talk to me. I have phoned them today but as my address and date of birth don't match their records they won't speak to me. What can I do? I can'[t afford to pay it off but could afford monthly payments or should i ignore it and what affect would that have on my credit file?! Thanks

fatbelly

Well, that's a bit of a mess.

Interest should be frozen now that it is with Moorcroft but they do not normally buy debts - they usually just act as collection agents. It may not make a lot of difference.

Eventually, provided you stay on the radar of the credit reference agencies, Moorcroft or Santander will write a letter to you. What I would suggest is that you start saving a lump sum now so as to be able to offer them a lump sum in full & final settlement when they do write.

sourcrates

Good advice above.

They can't legally ask you to pay a debt over the phone or by text, to comply with debt collection practices, they must write to you.

Stay off the phone to them, and do as Fatbelly suggests.

Vixenmark1

Thanks -- I'm hoping to offer a final settlement figure in the next few months or so - If they have contacted me by then. Santander have told me they have sold the debt so not sure if that is true or not

Sazzie23

Great advice, as usual from FB and SOurC.
Sit tight, they'll find you eventually, if it's not affecting you in any way, hold onto to the money for now.