Santander Loan and Overdraft

Fluffykittens_me

Hi, just looking for advise. All of my debts have now defaulted and I have set up payments plans on standing orders. The only one that hasn't is a Santander loan and credit card, they have passed the debt to Moorcroft who have contacted me and I have ignored to it gets defaulted. They have now turned up at my door this morning and asked my daughter if I lived here and to hand this letter to me, which is a letter to set up a payment plan. I am mortified. Do I have to contact them or still wait till Santander defaults, this has been unpaid since July/August last year. Do they normally take so long to default, I owe approx 5500.

bazdvd

call them and set up a payment plan like you have for all your other debts.

sourcrates

Well, similar scenario, a religious group knock on your door, they go through their indoctrination speech, and leave you a leaflet, do you have to find God?

No, of course you don`t, and you don`t have to respond to Moorcroft either.

The debt has not yet defaulted, so no legal action can be taken, Moorcroft have been engaged to simply re-connect you to Santander, in the vane hope you can remain a customer of theirs.

They are not aware of your management plan, so telling them what you are proposing might stop all these side shows from happening, I find a letter explaining my plans can work well on occasion.

Explain to them what you are intending to do, and suggest they hurry things along as FCA legislation allows a default to be registered after between 3/6 missed payments, you are almost at 12 now, so to comply with the CONC handbook, they should default you straight away and backdate it 6 months.

Don`t ask, you don`t get, see how they respond.

RAS

Did you get notice of the visit, as they are supposed to do? Moorcroft do use door visitors, although the worst they can do is deliver a letter. They have no more status than the paperboy.

For most people that is of limited consequence, although if you have family members who aren't aware of your financial situation, it can be embarrassing even if the visitor doesn't say anything.

You could write to Santander (not Moorcroft as they have no power) and tell them you will set up a payment when they issue the default.

Since their strategy seems to be use the threat of default to get you to pay up, that might be a surprise to them.

With respect to family, you may want to think how you handle any queries. You have nothing about which to be embarrassed, you have some credit debt and have taken advice. Santander have a part to play which they've not yet done. When they meet that requirement, you will make arrangements to pay.

And just in case family are concerned about bailiffs, they are almost never used for consumer debt. Just prioritise keeping the CT payments up to date.

Fluffykittens_me

Thanks to you all for your advise and no they didnt advise they would be visiting. I will send a letter as advised to Santander. 😊

Fluffykittens_me

Can I just ask if the debt has defaulted and Moorcroft have not bought the debt but are trying to recover it, does that change how I proceed?

sourcrates

https://forums.moneysavingexpert.com/discussion/comment/82033048#Comment_82033048

On this occasion Moorcroft will have been engaged as a collector, what`s known as an equitable assignment.

They are only able to collect the arrears, so have no teeth, and no ability to enforce the agreement.

Its rare for high street banks to chase their own bad debts or consider going to court.

Had the debt defaulted, they may still have been engaged in a similar role, so you would still treat them as having no teeth.

The threat of legal action only ramps up once a debt is sold, the new owner assumes all rights and privileges of the original owner, so can take legal action in their own right.

Say Lowell bought your debt, they may choose to collect it themselves, or could again assign it to someone like Moorcroft, basically if the collector refers to "their client" you can ignore them if you wish, otherwise you should agree on terms to avoid escalation.

Fluffykittens_me

Thanks Sourcrates.

ManyWays

This is the downside of the "wait until it defaults" approach: continued hassle and interest being added.

You have five options, and may be able to combine some of these:

1) tough it out, it will default at some point. Do not open the door to any door knockers.

2) make an affordability complaint now about the debts. In theory this should not be relevant to a default, but it could get the interest stopped and the balances reduced

3) make a payment offer now

4) tell moorcroft you will not make a payment offer unless it defaults first

5) make a complaint to Santander that they should have issued a default after 6 months of non payment

Fluffykittens_me

@sourcrates ive spoken to Moorcroft as the debt is showing on credit file as defaulted. Moorcroft have advised the debt is still owned by Santander as they do not sell the debt. Is this the time to set up a payment plan with Moorcroft?

sourcrates

https://forums.moneysavingexpert.com/discussion/comment/82036892#Comment_82036892

I would say so, once defaulted, the situation won`t improve further, the default is the line in the sand really, so you should be good to go.