Santander Modified Agreement - any suggestions?

[danny1105]

I took out a credit agreement with Santander Finance in 2010 for a 3 year car loan with the usual balloon type payment/return car option at the end of it. However, I wanted the car for a further year and they agreed that I could extend the agreement for a further year. They sent me a form which had to be ticked and returned and a document entitled "Agreement modifying a Credit Agreement" which had to be signed and returned by 2/4/2013. Unfortunately I overlooked this and failed to return it as I had a lot of other things going on at the time and I got a call yesterday stating that they had terminated the agreement and were taking steps to repossess the car. Has anyone experienced this? I have not missed a single payment and the documents they sent me said nothing about failure to return them in time would lead to these steps being taken. I assumed the Direct Debit would continue regardless and the money was there for them to take it. I have written to them yesterday quoting the OFT Unfair Relationships Guidance stating that that the Agreement is a related and linked one to the one I have already signed in 2010 and that termination is unfair.

 

Any advice gratefully received

[Gaston Grimsdyke]

There is no linked or related agreement. There is only one agreement, the original HP one - because neither you nor they ever executed the modifying agreement. Doubt they will be able to repossess the car though, if it's only the balloon outstanding you will have paid more than one third of the total purchase price so they'd need a court order first (though they wouldn't have any trouble getting one). I'm surprised they are being so aggressive though, did you offer to send the modifying doc back when they called you?

[danny1105]

Yes I faxed it straight over with a letter apologising for the oversight and when I spoke to them on the phone I offered to pay by debit card there and then for that months payment they refused to take it.

 

Incidentally, I still haven't received anything in writing from them.

[danny1105]

Update on this matter. had a letter from Santander saying that while they didn't feel they had done anything wrong, they were prepared to extend the agreement by a further 12 months for me. So a happy conclusion to this saga. Still don't know why someone there couldn't make the decision in the first instance to save me a few weeks of turmoil but am pleased that they came around in the end.

[MaxxPower]

It sounds like something automatic flagged up and somebody got a bit over-zealous in handling the red flag. Most likely someone has stepped in and the whole "we don't feel we've done anything wrong" is just them trying not to sound like they went too far too fast.

Just make sure you keep hold of that letter though! If I were you I'd get a copy made as well or scan a copy into your computer just to cover yourself.

[danny1105]

Update on this. I made the final monthly payment on this back in March and sat patiently waiting for a letter from Santander to drop through my letterbox giving me a date that i had to make the final balloon payment by or return car etc but nothing happened until last Saturday when I received a phone call from Santander telling me that the final payment was overdue. I told them I had received nothing from them. They said they did not send out a letter when they had extended the original agreement by a further 12 months. So I am just meant to pay the lump sum with no further invoice or anything. Trouble is they now tell me that it is overdue. surely they need to send something to comply with consumer credit regulations? Does anybody know about this?