Old Abbey National overdraft and default

[covers22]

Hi

 

I am looking for a little advice on how I should deal with a very old Santander (Abbey National) overdraft.

 

Many moons ago (2007 – 2009) I had an Abbey account with a £3k overdraft,

which despite me having my salary paid into this account,

they decided to withdraw the facility giving only one months’ notice.

(I believe this was the annual account review and my credit file had some adverse records on it).

 

 

I was forced to move my salary and setup DD’s in another bank quite quickly

and wasn’t in a position at the time to clear the overdraft.

 

 

During the time the account was open they had charged me just over £3k in bank charges

which didn’t include interest and in 2011 registered a default against me.

 

Now I am in a far better financial position and would like to refinance to get better interest rates and perhaps go for a 0% balance transfer on a couple of credit cards.

But this default will be on my file for another 8 months so is preventing me from getting favourable finance offers.

 

What would be the best way to deal with this and would it be possible to have this default removed?

 

Thanks in advance for any advice you can offer.

 

Covers22

[gregs07]

Sit tight and let it drop off. Paying it will not change your credit rating.

[AndyOrch]

Have you done anything with regards to the following....

 

" During the time the account was open they had charged me just over £3k in bank charges which didn’t include interest and in 2011 registered a default against me."

 

Is the debt still outstanding and with Santander ?

[covers22]

Hi, Thanks for the replies.

 

 

The debt is still outstanding, but I'm now in a position to pay it off. I wondered if i could use that to negotiate having the default removed.

[AndyOrch]

Hi, Thanks for the replies.

 

 

The debt is still outstanding, but I'm now in a position to pay it off. I wondered if i could use that to negotiate having the default removed.

 

Maybe but its quite rare...a default is a default and must be recorded on the CRAs in line with the ICO guidelines.They may mark it as either satisfied or settled....whether that would improve your rating ?

[Bazooka Boo]

No, paying it off now, whether they mark your file settled/satisfied will not improve your credit rating.

 

AFAIK, there is no merit in paying this off UNLESS, you reclaim ALL of the penalty fees they added to your account, including interest, which will make a dent in the amount owed and then you ''could'' make them an offer.

 

BUT, IMO, I'd let it run, this will drop off your file on the sixth birthday never to return, paid or not, plus unless they are rattling your cage, then let sleeping dogs lie.

 

If on the other hand they are harassing you regarding this, then I would send Abbey (satansbank) a SAR for the account details, then tot up all of the fees/charges, add on the interest and reclaim.

 

But with only 8 months to go, why kick the hornets nest?

[HateBanks]

Covers22 , well done you so far. I have a Bank O/D which I just stopped using in 2011 transferred benefit payment to a basic bank a/c , they list on my Credit report at an old address as " sustained arrears over three months but you have agreed new repayments with the lender " which I haven't , I havent been in touch with them for 5 years, BUT , they have taken to sending a new debit card to old address for the last two years, which I guess is a ploy to keep the clock ticking, but with overdrafts, I didn't think there was a clock ! I could advise them of change of address, but they can see that on CRA Credit report.

I guess there is some automated process which just keeps issuing 1 year debit cards to the old address. I cant pay the O/D off. Leaving alone. Balance been the same for 5 years. No other correspondence sent to old address at all.

[covers22]

Thanks for the replies.

I have written to Santander stating that all the charges they have unfairly levied on my account are wholly responsible for the outstanding debt and therefore the registered default. I have asked them to write off the debt along with removing any adverse entries as a settlement instead of me going to the FOS or taking it to the courts.

I’ll let you know if this longshot works, and just go for the charges and interest as compensation if it doesn’t.

[Bazooka Boo]

It would be good to see what it was you sent to the bank if you can scan and post it up?

 

You may very well have reset the clock depending on how you worded that letter?

 

I'm still not sure why you're dragging this up at this late stage?

 

Have they been harassing you for payment?

 

Can you not wait 8 months for this to auto drop off your file?