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  • FIRST POST
    • nem39esis
    • By nem39esis 6th Aug 18, 9:59 AM
    • 54Posts
    • 15Thanks
    nem39esis
    Paying back overdraft Santander
    • #1
    • 6th Aug 18, 9:59 AM
    Paying back overdraft Santander 6th Aug 18 at 9:59 AM
    I have 2 accounts with Santander, that havenít been used in years, stupidly they have large overdrafts on them in the red and Iíve 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 theyíve 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 Iím paying this off? Should it not show as something else? Iím 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
Page 1
    • sourcrates
    • By sourcrates 6th Aug 18, 11:54 AM
    • 14,866 Posts
    • 13,952 Thanks
    sourcrates
    • #2
    • 6th Aug 18, 11:54 AM
    • #2
    • 6th Aug 18, 11:54 AM
    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.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
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  • National Debtline
    • #3
    • 6th Aug 18, 12:48 PM
    • #3
    • 6th Aug 18, 12:48 PM
    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
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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