Santander issue help needed

laneymc

I asked Santander for a three month covid break. They refused and defaulted the card to “allow it to go on a payment plan” . Today however I got a letter saying there had been a historical system error which meant I hadn’t been sent the right notices in the past and they didn’t help me in the way they should. The refund due was £2616.55 I was delighted at first until I read that they had indeed applied the refund to the card (which is closed and in default by them) . Surely I should be entitled to decide where the money goes and how it’s used. I already have a complaint lodged due to their lack of help during covid but this is just running my nose in it. Any suggestions 

[Deleted User]

They can offset money against unpaid debts, you should get the rest. No you don't have any say in that

dr_adidas01

laneymc said:

I asked Santander for a three month covid break. They refused and defaulted the card to “allow it to go on a payment plan” . Today however I got a letter saying there had been a historical system error which meant I hadn’t been sent the right notices in the past and they didn’t help me in the way they should. The refund due was £2616.55 I was delighted at first until I read that they had indeed applied the refund to the card (which is closed and in default by them) . Surely I should be entitled to decide where the money goes and how it’s used. I already have a complaint lodged due to their lack of help during covid but this is just running my nose in it. Any suggestions 

Sadly they have have every right to set off any money refunded to pay an existing debt you have with them which is what they have done since you defaulted on your credit card. 

You could try and ask if they would reconsider setting it off against your debts a gesture of goodwill  and sending you a cheque for the money but there’s no guarantee they will. 

laneymc

I should say as well that since I requested my payment holiday last year and the default debacle they sold my account to wescott for I’m sure a residual amount so have in fact profited from this 

[Deleted User]

They won't have profited from it.  If they had, you would have received the balance.

[Deleted User]

laneymc said:

I should say as well that since I requested my payment holiday last year and the default debacle they sold my account to wescott for I’m sure a residual amount so have in fact profited from this 

Santander would have sold the debt to Westcott for far less than you owed, I've seen figures as low as £180 for a £1200 debt - 10-30% is common. If we were generous and said they got 50% of a £6000 debt from the agency, they "lost" £3000 on you, so offsetting the ~£2600 debt means they recouped almost all your debt.

In reality they will still have made a loss even with the refund. It may seem unfair but if you think about it, you are effectively expecting a refund of money you never paid in the first place - hence why they are allowed to offset, so long as you get paid the balance.