Bank credited closed account

iateamoose

Hi
In 2013 I defaulted on an overdraft and in 2015 paid the debt back to Santander in full. Fast forward a couple of years and I get calls from a collection company for the same balance. Turns out Santander credited the money to the closed savings account where it has sat ever since gaining some interest. On the down side my credit file has shown this as my only debt for the past 2.5 years. What should the bank do to rectify this? and what kind if any compensation should I expect?
Thanks

GTR_King

If it's in a closed account the bank should contact you to ask where you want the money or sent a cheque... If not you need to contact the bank and ask them to give you the money back... I am not sure about compensation you might get some

jonesMUFCforever

iateamoose wrote: »

Hi
In 2013 I defaulted on an overdraft and in 2015 paid the debt back to Santander in full. Fast forward a couple of years and I get calls from a collection company for the same balance. Turns out Santander credited the money to the closed savings account where it has sat ever since gaining some interest. On the down side my credit file has shown this as my only debt for the past 2.5 years. What should the bank do to rectify this? and what kind if any compensation should I expect?
Thanks

Sorry but this makes no sense. A closed account is closed so nobody could have paid monies into it.
If you assumed the account was closed but was actually still open with a nil balance(as many accounts are) then funds could still be paid in.
As the funds are in the account you can pay the collection company - keep the interest for your time - but IMO no further compo is due.

iateamoose

jonesMUFCforever wrote: »

Sorry but this makes no sense. A closed account is closed so nobody could have paid monies into it.

Well, quite. As far as I was concerned all my accounts with them were closed.
Bank statement has a input 'ACCOUNT CLOSED CONTACT...' on a date in 2013, then in 2015 the credit shows, the one which was meant to cover the debt on the overdraft account. I paid it over the phone with a debit card so the call handler used those account details in error I guess.

System

jonesMUFCforever wrote: »

Sorry but this makes no sense. A closed account is closed so nobody could have paid monies into it.
If you assumed the account was closed but was actually still open with a nil balance(as many accounts are) then funds could still be paid in.
As the funds are in the account you can pay the collection company - keep the interest for your time - but IMO no further compo is due.

What an awful idea.

If the OP dealt with Santander in 2015 then they should have applied the credit then and marked it settled at that point. If the OP now pays the collection agency, they won't get any recognition for the earlier payment and collection agency gets the reward.

I would be also pushing for a goodwill gesture from Santander.