late payment car finance markers - were they correct??

[Neil 1975]

Hi all, thanks for taking the time to read this,

hopefully someone will able to advise…

 

To cut a long story short,

 

in 2009 I took out a car finance agreement with Santander, the monthly payments were £179.

 

Unfortunately the vehicle was stolen during a burglary in 2011 and was not recovered.

 

The cars insurers paid their amount to Santander but for reasons beyond me the gap insurers didn’t make their payment.

 

Last year this came to light and the gap insurers made their payment (3 years late) this caused there to be an outstanding amount left on the agreement.

 

I negotiated with Santander to pay £25 a month until the remaining balance was cleared, this was confirmed in email and letter.

 

Last month my beloved jaguar failed it’s mot quite badly to the point where it wasn’t cost effective to repair it

 

I looked into getting a new car on a lease agreement,

however to my complete surprise I failed the credit check?!?.

That had me stumped as I’ve never missed a payment on anything.

 

I purchased a copy of my credit file from Experian and found that every account listed was perfect, all payments were made on date ect, apart from Santander!

 

They had the car finance agreement listed as £270 x 60 months, which is incorrect for a start as the original agreement was £179 x 60 months,

 

whilst the monthly balances showed that the agreed amount of £25 a month was being paid each month, it showed each months payment as being late!

 

After speaking to Santander they have wiped the outstanding balance and have said they have updated my credit file to clear the incorrect entries, I still need to check this.

 

My question is…

as this was clearly the reason my application for the lease car was refused, and it led to a lot of costly inconvenience having to purchase a car through different means,

have I a case to seek compensation from Santander for the incorrect entries?

 

Thanks

[obiter dictum]

You have no claim for compensation as both the creditor and credit reference agencies are removing the entries immediately after being notified

 

They are being rather nice about it as it would have been your responsibility the gap payment to be made to the creditor went through

 

Just go back to the car dealership once those negative markers have been removed and tell them again why you were originally declined.

 

They will probably even remove the last search they did on you as well

 

You will then pass the creedit check so no detriment to yourself

 

Why are you paying £25.00 a month if the gap has cleared the account??

 

It is no wonder they were quick to rectify things as you are entitled technically to all those £25.00 payments back as he insurance shortfall has now been rectified

[Neil 1975]

As I said it was a long story..

 

. in 2011 when the car was stolen I was going through a lot of family problems

(I lost my sister and nephew in close succession),

the car insurers paid their amount and the gap insurers advised they had all the necessary information and would make their payment.

 

I didn't hear from Santander until last year when they chased me saying the account was in arrears,

they advised that they hadn't received the gap insurers payment so the loan had rolled on.

 

In essence, they had taken the car insurers payment and used it to continue making the monthly payments until the amount ran out then they got in touch.

 

In the insuing argument they sent a doorstep collector to my house,

I look after my disabled brother and had enough to deal with at the time so I agreed to pay £25 a month until the amount was cleared.

 

I've never checked my credit file before but when I looked at it last month it shows that Santander have been putting incorrect entries on it since we agreed on the £25 a month payment.

 

In terms of going back to the dealership,

I needed a car asap so when the application at the dealers was refused I had to use my savings to buy a cheap runaround,

 

I probably wont get back what I paid for if if I was to sell it and return to the dealership... hense my annoyance at the situation.

[obiter dictum]

It looks to me you are entitled to all those £25.00 payments you have made to Satans Bank since last year to be returned

 

The Gap finally settled all liability

 

Get reclaiming but wait for more replies as that is only my own opinion on the matter

[Neil 1975]

The loan agreement was for 60 monthly payments of £179… £10,740 in total.

 

When the car was stolen and classed as a total loss Santander advised that the settlement figure would be £5845.

The insurers paid £5050 (£5450 minus the £400 excess), leaving a balance of £795.

 

The gap insurers should have paid the difference of the total loss figure £5450, and the settlement figure £5845… £400, or £795 if they covered the excess as well, which they advised in a phone conversation they would.

 

As I said, for reasons beyond me the gap insurers didn’t act so Santander used the £5050 from the car insurers to continue making the monthly payments, I was unaware of this.

 

When the £5050 ran out last year they came after me with a vengeance, numerous calls, letters, emails ect.

 

As you’ll appreciate I was a bit aghast as I thought it was all dealt with.

I spoke to the gap insurers who said they’d been waiting for an instruction???

 

They claimed they had no record of the call in which the lady I spoke to advised she had all the necessary information and would make the payment.

 

After a bit of a fight with them they were only prepared to pay the gap amount that would have been relevant at the time of the theft in 2011, a payment of £395.

 

They paid this amount and I went back to Santander,

they advised that the loan had continued to run on and the outstanding balance was £1472.

 

Even though it all seemed wrong, I had no idea how to deal with it so I agreed to pay £25 a month until it was cleared,

I didn’t want anymore doorstep callers or risk it escalating as I had enough things to deal with at the time.

 

It wasn’t until I checked my credit file last month that I found that whilst the £25 a month was recorded as being paid off the balance each month, Santander had recorded 21 out of 24 monthly payments as being paid late, and had recorded the loan amount as the incorrect amount.

[citizenB]

IMHO, you are entitled to compensation from the GAP insurance company as it was their tardiness that led to you having to repay Santander the extra money and the trashing of your credit record.

 

If the Insurance has settled the balance (as it should have originally) then I would also say you are entitled to a refund of the £25.00's you have paid.

 

Have asked others on the site team to look in on you.

[dx100uk]

Ask Satan's bank the direct simple question..

 

Why were the payments marked as late

 

Then you'll know your target

 

And yes get those £25 payments back if you are entitled to them

 

Something's not right here

 

Let me go through and add some line spacing

 

So the story is easier to comprehend

 

Dx

[dx100uk]

So Satan's bank sent a doorstepped around?

Who was that

And what did they say they were and what powers they have?

 

Ultimately I pers think this is Satan's fault

And compo time from then

 

Knowing Satan well from this forum. Its darn near impossible to get them to clear a credit file and very rare

That to me smacks of them knowing full well they dropped the ball as they've acted so quickly and without a fight

 

Dx

[stu007]

Hi

 

Have a read of this link from fos on GAP Insurance: http://www.financial-ombudsman.org.uk/publications/technical_notes/GAP-insurance.html

 

what types of cases do we see?

 

In the cases we see, consumers often say that:

 

* The policy was mis-sold or the cover was not correctly described.

* The amount the insurer paid out was not enough to pay off all the outstanding finance.

* The insurer wrongly rejected the claim.

* The insurer delayed paying out.

* They cancelled their policy but the insurer has not refunded any of the premiums.

 

was the settlement delayed?

 

GAP insurance policies only pay out once a claim under a motor insurance policy has been accepted and settled - because this is when the "gap" becomes known. We see cases where the consumer has had to continue to pay the finance on the vehicle while waiting for the motor insurer to settle the claim.

 

GAP insurers are not responsible for delays caused by motor insurers not accepting/paying a claim or finance providers failing to provide requested information. Consumers should take up delay issues with the business that caused the delay. If that business is covered by the ombudsman service, the consumer can bring a complaint to us.

[Neil 1975]

Thanks for the feedback.

 

In terms of the gap insurers,

I tried to argue the point with them but they claimed they were waiting on an instruction to act,

and said they had no record of the conversation I had with them when they advised me they had all the information they needed.

 

 

In the end I had to just accept it and let them pay the amount they had calculated.

Whilst it is no real excuse I had a lot of things going on at the time

and I wasn't able to give the matter the attention I should have.

 

In terms of Santander,

when the car was stolen I informed they immediately.

 

 

They raised a settlement figure, liaised with both the cars insurers and the gap insurers and were kept up to date during the process.

I cancelled the monthly payments when the car was classed as a total loss, and I heard nothing further from them until last year.

 

 

They say that as they didn't receive the gap insurers payment the loan continued to roll on,

even though it was secured on the car, which had been stolen lol.

 

 

When the £5050 paid by the cars insurers ran out they then came after me with a vengeance.

It started with a letter saying I was in arrears, then whilst I had already struck up a dialogue with them

I was still getting umpteen random calls a day asking me to make a payment.

 

 

This then led to the doorstep idiot leaving a letter through my mailbox, which laugh again,

stated that if the payments weren't brought up to date I risked having the car repossessed,

yes the car which was stolen three years before lol.

 

 

It got to the point where I had to do something so I offered to pay £25 a month until I could seek some advise about how to fight the matter.

The £25 a month payments are showing on my credit file as a reduction of the balance each month,

but as they have the payment target set as 60 x £270, which is completely incorrect,

it shows up on my credit report that I've been late with the last 21 payments!

 

 

As I've said they've agreed to clear the remaining balance and rectify the entries on my file,

but I'm at a loss to whether I can claim any thing back off them for trashing my file for so long.

[Surfer01]

If Santander were paid a lump sum, why did they continue to make monthly payments with that lump sum

as while the money was in their possesion it shoudl have accrued interest.

 

 

As they had recevied a lump sum, paying it into the account woudl have reduced the interest payment substantially.

 

 

Are Santander trying to pull a fast one by not reducing the interest after receiving a lump sum.

 

 

I would think that the FOS would frown on this?

[dx100uk]

good point

[Neil 1975]

Thanks again for the feedback.

 

I have spoken to santander today,

they have addressed my credit file now and have removed the late payment entries.

 

 

I asked them if they were prepared to look at the complaint again before I sent of off to the finacial ombudsman,

 

 

the chap i spoke to said

 

 

1. the heading of 60mths x £270 was correct

as even though the monthly payments were £171 the final payment would have been £270,

 

 

2. the late payment entries were correct as even though the £25 a month payment had been agreed

it was short of the £171 payment that should have been made.

 

Is this correct?

any advise would be welcome

[obiter dictum]

Are they refunding you those £25.00 payments now the GAP has settled the original diffeence between car value and outstanding finance shortfall?

[Surfer01]

Thanks again for the feedback.

 

I have spoken to santander today, they have addressed my credit file now and have removed the late payment entries. I asked them if they were prepared to look at the complaint again before I sent of off to the finacial ombudsman, the chap i spoke to said 1. the heading of 60mths x £270 was correct as even though the monthly payments were £171 the final payment would have been £270, 2. the late payment entries were correct as even though the £25 a month payment had been agreed it was short of the £171 payment that should have been made.

 

Is this correct? any advise would be welcome

 

Unfortunately they are correct as we had this happen when I was made redundant and had an Avensis on HP. The lower payment was agreed, but still had late markers on the credit file even though the vehicle was fully paid up in full 6 months later and 3 years before the HP finished!

[obiter dictum]

Surfer01

 

Quick question as to why with the agreed reduced payment the OP credit file is then marked as continued one month late??

 

The accepted procedure is simply to mark the credit file with (AP) or arrangement to pay as it has been agreed between creditor and debtor

[Neil 1975]

Thanks again for the feedback... I can sort of see your point, however whilst with your situation it was due to an instance that was beyond your control, the financiers weren't really at fault. With my situation, I wasn't aware the loan was still in place as santander let the loan run on without my knowledge (most interest payments for them) and then trashed my credit rating after I had specifically agreed to the £25 monthly payments to avoid this.

 

I've sent a final complaint letter to them yesterday detailing the events from start to finish, the effect the late payment markers have had on me, cost, stress ect, and have given them 14 days to respond. the FOS have advised that as I have already received santanders final reponse I don't have to give them eight weeks for a reply, so if i don't get a response in 14 days I'll send the job lot off to the financial ombudsman and see what happens.

[Neil 1975]

Bit of an update on this one...

 

 

Santander agreed to correct the credit entries so that there were no late payment markers.

 

 

All appeared fine on my Experian report so I ventured back to my bank to resubmit my loan application, only for it to be declined again?!?.

 

 

After a bit more digging and another row with Santander

it turned out that the idiot at Santander that was dealing with my complaint updated the credit entries on Experian,

but didn't update the entries on Equifax or Callcredit,

 

 

so one agency was showing no issues whilst the other two were showing all sorts.

As my bank check all three, they advised this was the reason for the loan applications constantly being declined.

 

Realising their further mistake, Santander amended the entries on Equifax & Callcredit

and after submitting my loan application today it went straight through with no problems.

 

Santander have provided a final letter explaining the fault but have only offered £50 compensation (sorry... 'good will gesture'),

I'd asked for £350 to cover the time off work I had to take when all this came to light.

 

I'm just assessing my chances if I take the to the fos... any ideas?