Default date

maxwell13

Hello, first time poster grateful for any advice please.

I had a Cahoot flexible loan. When my marriage ended I couldn't afford the minimum contractual payment.

Between October 2015 and January 2017 I made token payments. This was reported monthly on my credit file as a missed payment.

Santander defaulted the account 15 months later in February 2017.

After reading similar scenarios on this forum and other advice sites I complained to Santander and asked them to move the default date to a maximum of 6 months after I stopped making the contractual payments, so April 2016 at the latest.

Santander responded and said:

'For Santander when your account reaches 5 months of arrears we issue a notice of intent to default.  Your account reached this threshold in January 2017'

I spoke to their complaints handler who suggested the arrears have to reach a monetary amount.  He agreed I broke the contract and my credit file reported 15 monthly missed payments. But they will not change the date of the default.

I've explained I have been disadvantaged against someone who made no attempt to pay which is against the SCOR guidance.  If I'd made no effort to pay the default would be removed in April 2022, rather than February 2023.

I've asked for a record of the actual contractual payments required and what I paid to show I clearly broke the contract.

I intend to make a complaint to the FS0.  But do I have a case or am I completely missing Santander's point?

Sorry for the long post. I'd really appreciate some advice.  Thank you.

p3ncilsharpener

You don't have a case.

They are correct to say that 6 months worth of payments need to be missed before a default is issued, not simply 6 months of not making the required repayments.

maxwell13

Thanks so much for your reply. So I did make my situation worse by making token payments?

Apologies for being stupid but if I was making less than the contractual payment that would accrue arrears?  So do the arrears need to total 6 months of the contractual payment before they issue a default?

I had a credit card at the same time that defaulted after I'd made 6 months of token payments.  I'm confused how this is different?

I read on another forum about ICO guidance and not being disadvantaged in comparison to those who made no attempt to pay 🤷‍♀️

Thanks again. 

p3ncilsharpener

maxwell13 said:

Thanks so much for your reply. So I did make my situation worse by making token payments?

Apologies for being stupid but if I was making less than the contractual payment that would accrue arrears?  So do the arrears need to total 6 months of the contractual payment before they issue a default?

I had a credit card at the same time that defaulted after I'd made 6 months of token payments.  I'm confused how this is different?

I read on another forum about ICO guidance and not being disadvantaged in comparison to those who made no attempt to pay 🤷‍♀️

Thanks again. 

It's guidance, so nobody needs to follow it.

The guidance can be interpreted as 6 payments that are less than the minimum, or 6 months of payments being missed (in value) so they've done nothing wrong.

maxwell13

Thanks for your reply, I really appreciate it. I'll give it a go with the FSO because I've got nothing to lose.  

p3ncilsharpener

maxwell13 said:

Thanks for your reply, I really appreciate it. I'll give it a go with the FSO because I've got nothing to lose.  

You've got time to lose.

If you look at the FOS decisions site you'll find numerous examples where defaults have been recorded later than 6 months (often much later) and the complaint has not been upheld.  Yours won't be either.

adamp87

p3ncilsharpener said:

maxwell13 said:

Thanks for your reply, I really appreciate it. I'll give it a go with the FSO because I've got nothing to lose.  

You've got time to lose.

If you look at the FOS decisions site you'll find numerous examples where defaults have been recorded later than 6 months (often much later) and the complaint has not been upheld.  Yours won't be either.

There’s also been examples where they’ve moved the default too. 15 months does seem excessive and unfair. Yes the complaint may go nowhere, and take time but for the sake of sending an email & potentially getting it changed it’s worthwhile for OP.

maxwell13

Thank you for your reply. I still intend to complain to the FSO and have also read examples where the date was changed so it's worth the time for me. 

p3ncilsharpener

adamp87 said:

p3ncilsharpener said:

maxwell13 said:

Thanks for your reply, I really appreciate it. I'll give it a go with the FSO because I've got nothing to lose.  

You've got time to lose.

If you look at the FOS decisions site you'll find numerous examples where defaults have been recorded later than 6 months (often much later) and the complaint has not been upheld.  Yours won't be either.

There’s also been examples where they’ve moved the default too. 15 months does seem excessive and unfair. Yes the complaint may go nowhere, and take time but for the sake of sending an email & potentially getting it changed it’s worthwhile for OP.

There are far more examples where they do not.  Even a default several years after a default notice was issued.

This is yet another example of why the FOS currently isn't fit for purpose.  People essentially get a free bet with nothing to lose, and the company end up being several hundred pounds worth off. It's about time the losing side paid some of the bill, that'd get rid of all these chancers.

stclair

The argument could be was being put on an payment arrangement in the first place was the best option for them generally payment arrangements are normally set in the hope they go back to the contractual terms within 6 months. 

maxwell13

I'm not a chancer, I'm just asking for advice.

To add, Santander contacted me this morning.  When I first got into financial difficulties in October 2015, Santander did not address my concerns so in August 2016 they agreed to refund the interest charges of £908. 

Apparently they've since discovered this amount wasn't credited to my loan account.  This amount would have cleared the arrears and prevented the account from defaulting. 

They've escalated the complaint and asked me to 'bear with them'.