Santander blocked DDs and caused late payments - what can I do?

togarama

Sometime in April Santander blocked my current and savings accounts. They said they couldn't tell me what it was about. From looking around at similar stories on the internet I'm guessing that this is another case of Santander casting a wide net in applying the legal obligation to rule out money laundering on payments and transfers.

I have a working credit card and Euro account with other banks, and am in another EU country until later in May. Santander assured me that direct debits and standing orders would still go through on my UK account even though I was unable to make any payments and transfers from card or internet banking. I specifically queried the credit card and mortgage payment DDs and the assurance was repeated. Given these factors, I was relatively relaxed at first, even when they kept postponing phonecalls to resolve their queries and lift the block. Yesterday, nine days after I became aware of the account block, I finally had the chance to talk to someone about what they wanted from me this time and emailed over documents requested.

This morning I logged into my credit card account to be greeted with a big "Late Payment" banner, indicating that the direct debit had been refused. There is obviously a late payment charge and interest to be applied on my account. I am now in a panic and assuming that my mortgage payment will also have been refused, and that both of these will end up on my credit record, dragging it down for the next 6 years.

I currently have no late payments or defaults on my credit record. I have sent in a complaint to Santander this morning, requesting a refund of the charges incurred and noting the damage they have caused to my credit record.

I sent an immediate secure message to my credit card bank to explain the situation and will contact my mortgage lender shortly. Is there any way that I could prevent these late payments caused by Santander being added to my credit record, either via Santander or via the credit card and mortgage companies?

There's a history of issues with my Santander current and savings accounts over the last 6 months, after 10+ straightforward years. In brief, I worked for an international organisation for 17+ years and spent lots of time in Europe. My salary and outgoings were all very clearly marked on my account, including small monthly transfers to my € account via Transferwise. Trouble started at the end of 2018 when I had the not-so-bright idea of converting a larger amount of money for the year ahead in one go rather than doing it monthly. This immediately sparked queries, phone calls and account blocks, with requirements to confirm ID and fill in online forms from various Santander units. I keep thinking I've done everything required and then someone / some algorithm blocks my account again e.g. when I try to shift funds between savings and current account.

Any advice on the late payment / credit record situation welcomed. There doesn't seem to be much I can do about the other Santander stuff except let off steam in complaints, let them process the latest documents and then switch when my accounts are unblocked.

Thanks!

[Deleted User]

If your account were frozen this means money in and out would be frozen despite what Santander “told you”.

A bit of googling and research would have also yielded the same answer.

togarama

The word "frozen" was never used. I was told there was a specific "block" on my account which prevented me from transferring money between my accounts via internet banking, or from making new payments online or via card, until someone from the team who placed the block had spoken to me and obtained whatever documents they required to lift it.

I believed the Santander employee who told me that direct debits would continue to go through.

[Deleted User]

Contact Santander and make a DSAR request.

They might have a recording of the call

togarama

Quick update. My credit card company responded helpfully and said they would not report a late payment if I could pay the minimum within 24 hours. I have now done this from another account.

Still trying to get hold of my mortgage company - bank holiday weekend not helping. Fingers crossed for something similar.

No response from Santander to my complaints yet. I will add a request for personal data / audio of recent phonecalls tomorrow if still not resolved.

togarama

Final update.

My mortgage company has also confirmed that they will not be posting a late payment to my credit file, although they are charging a late fee and interest.

Both mortgage and credit card providers noted that I had made contact quickly and brought accounts up to date as soon as the problem came to light. If 14 days had passed, they would have reported late payment.

Santander have said they will refund fees and interest resulting from the block.