Santander OD - Default during DMP with CCCS

[dreadpiratesteve]

Trying to get my head round this and see if there is a way to resolve this as I feel it's a little harsh.

 

In June last year I started a DMP through CCCS and made the repayments via Direct Debit with no problem. In May I was in a position to offer Full and Final settlements which were accepted with exception of Santander, who refused as they had said the account was closed and were even rejecting the payments from CCCS! When I asked Santander they said it was because they were preparing to sell the debt on to a DCA!

 

About a month later I received a letter from Santander asking for the remaining balance to be paid! I called Santader on the number given and the person on the line couldnt find my account and advised me to go to my local branch! Needless to say I went into the branch and the manager couldnt help but phoned through to the collections team for me and we were able to settle the account.

 

Now that all my debts were now settled I checked my credit file and found that Santander had quite nicely put a default on the account in April! Admitedly I had moved house in March so never received the paperwork (as none of my debts contacted my since I started the DMP) I never really put too much though into updating my address as a matter of urgency!

 

So, can a bank put a default on a credit file if payments were being made by a DMP?

[the_shadow]

Unfortunately if you are not making the required contracted minimum repayments then they can put late markers on your credit file...

 

For a normal account once a set period has expired (industry standard is 3 payments) they'll advise you by post with a default notice, which will include a statement saying they will mark your credit file if you do not rectify the default. After 30 days normally they'll mark your credit file.

 

When you are in a DMP they will normally mark you as a default as standard as you have agreed to make repayments but not at the contracted rate I'm afraid.

 

S.

[the_shadow]

The best bet always is to make the full and final offers conditional on removing any adverse data on your credit file, trouble is you werent aware of those markers.

 

S.

[dreadpiratesteve]

This was for an overdraft on a current account rather than a loan or credit card, so there was no CCA as far as I am aware, though the DMP had been in effect for about 9 months before the default was issued!

[the_shadow]

This was for an overdraft on a current account rather than a loan or credit card, so there was no CCA as far as I am aware, though the DMP had been in effect for about 9 months before the default was issued!

 

Ok, for an overdraft they normally give you a couple of months notice prior to marking your credit file... they should according to ICO guidelines mark it within 6 months tho so it could be worth challenging them on this but its a weak argument tbh

 

S.