Paying back overdraft Santander

nem39esis

I have 2 accounts with Santander, that haven’t been used in years, stupidly they have large overdrafts on them in the red and I’ve just been paying off enough to cover the monthly fees each month. recently the fees spiralled as I was in a bit of financial hardship which resulted in some unauthorised overdraft charges. These then ballooned with charge upon charge. I wrote to them explaining I was in financial hardship but they did nothing. Eventually they waved the unauthorised fees and after going through my financials we opted for a payment plan of 160/month. So it will take over a year to clear


The account now shows on my credit file as being in default every month because they’ve removed the overdraft on the accounts so effectively the accounts are showing as in an unauthorised overdraft every month but no charges are being applied.

Is this the only option? Should the account be closed while I’m paying this off? Should it not show as something else? I’m concerned this is really destroying any credit file I have and not convinced this was the correct option as I just want the accounts gone

sourcrates

Hi,


Unfortunately they are doing nothing wrong, they have offered you a payment plan, which you accepted.

The down side for you, is the fact you have effectively defaulted on the overdraught, so they are entitled to record it as such on your credit file.


Your only other options were to pay the amount off in full, which you could not do, or, stop paying altogether, allow the debt to default, wait until its been sold, then pay the new owner.

The latter would of had a similar effect on your credit file, so you cannot complain really.

National_Debtline

Hi there,


Unfortunately, sourcrates is right, and the bank doesn't appear to have done anything wrong in reporting what they are to your credit file.


To resolve this, the first thing I would suggest is that you change banks - open a new basic bank account away from Santander. Otherwise there is a risk, if your income is still being paid into these accounts that the bank can take it towards the debts owed. You should then create a SOA to work out a fair repayment offer.


Once the debts are cleared, your credit file should be marked as settled and this will help to improve your credit history.


Laura
@natdebtline