Alliance & Leicester bank account defaulted by Santander

[fozzypenfold]

Hi

I would really appreciate some advice and guidance how to proceed with the issue I have.

Background

• At the start of 2008 I had both an Alliance & Leicester bank account with overdraft and a personal loan .
• I split from my partner and very quickly found I could not repay all of the debts in my name, I contacted all creditors immediately (March 2008) and explained I could make reduced payments if that was acceptable

Alliance & Leicester Bank Account
The Alliance & Leicester said they would freeze my bank account which had an agreed overdraft of £500 , the balance at the time of freezing was -£507 this led to charges and a final balance of just over -£800. They advised they would contact me to arrange resolution I offered £25 pm and they declined advising they would be in contact. I sent an income and expenditure sheet and received nothing

Personal Loan
The Alliance & Leicester agreed to reduced payments and an amount was agreed, they sent me a letter confirming the amount and I made all payments as agreed.

2008

• I wrote on a number of occasions to the Alliance and Leicester asking about my current account and did not receive a reply, I went into branch and was told they could not trace this account. Nothing showed on my credit report?
• The personal loan account was defaulted in August 2008 and a notice was received and recorded against my credit file
• In October 2008 I contacted them and advised that I was moving to a new address and continued to receive regular correspondence about the loan and the arrangements made.

2009

• I wrote to the Alliance & Leicester again to advise I was moving in May 2009, again I continued to receive correspondence at my new address, when I enquired about my bank account they still had no record of the account
• I received a letter from Alliance & Leicester October 2009 advising that my loan will transfer to abbey national and then to Santander they confirmed my current payment arrangement with them
• In December 2009 I received a default notice from Santander dated 12th December 2009( for the personal loan) as default date and stating I needed to pay the full amount outstanding .
• I contacted them and explained I had an arrangement in place and they stated no evidence of this and clamed I had not paid anything, I faxed through my paperwork and a complaint letter and they agreed the ongoing payments, credit file showed original 2008 default date#
• They had no record of current account and no correspondence received re transfer to Santander

2010
Nothing to add
2011

• I repaid my personal loan in full October 2011
• Bank account reappears onto my credit file October 2011 with a default date of 21st April 2011
• I visited branches and wrote a letter to Santander in October 2011, setting out concerns re bank account and complaining that I had not received any correspondence at all in the last three years and a default had now appeared. I asked for the charges to be removed from the balance of £800 and the debt to be showed as the actual £507, my address was on each page of the letter . I received no reply but my credit file was adjusted some months later to the balance of £507, the default date of April remained

2012

• I wrote again in 2012 and rang on numerous occasions, I then found out that Santander and Alliance & Leicester had sent out lots of communications to me ( they claim) to my old address. They agreed I had not been treated well when I evidenced all communications and visits to local branch's in an attempt to resolve, they also acknowledged they had my address ( as they had corresponded my personal loan) - they paid me £200 compensation and said they would remove the default.
• They then called me back and said they could not remove the default after all.

To be honest I gave up at this point but I am left with a default date of April 2011, which means applying for a mortgage is impossible, everything else on my credit file has now cleared from 2008.

My questions are :

• Is there a time limit in which a default can be applied?, if the account was frozen in 2008 ate they able to default in 2011 when I had been clear I could not repay in full ?
• I have never received any paperwork (apart from the compensation letter) should I persist
• Any advice on what to do ?

[ncf355]

Re: Alliance & Leicester bank account defaulted by Santander

Hi

No, it is not acceptable for them to default the account several years after you informed them you couldn't pay it

Overdrafts are normally a little tricky as to where the Default occurred, but in your case it seems quite clear


I would first try writing with a SAR asking for copies of all communication that has passed between you, along with copies of all internal notes made in relation to your account

SAR is Subject Access Request, made under under the data protection act 1998, it costs £10

Once you have that information you should have proof you notified them of the situation in 2008

If that is the case, you can then write asking them to amend the Default date the date you first notified them you could not pay, as you made it clear the situation was not likely to improve


If they refuse, you can take your complaint to the information commissioner's office (ICO) as they have guidelines regarding default timelines that on the face of it, it appears A+L have not kept to


Follow the above, keep us informed of your progress and we'll do our best to help you

[ncf355]

Re: Alliance & Leicester bank account defaulted by Santander

I Double posted! Oops

[nemesis45]

Re: Alliance & Leicester bank account defaulted by Santander

Hi Welcome.
This is a typical Santander foul up.
Was the account defaulted when it was frozen? Or left as an open account with an "arrangement to pay" in place?
The ICO's guidance is that defaults should be recorded within 6 months of the cause of action e.g. the cessation of contractual payments. The ICO also says that a credit file entry must be an accurate and up to date picture of the conduct of an account, and that if an AP is in place it may not be appropriate to register a default.

Prior to updates of the ICO Guidance last year it was possible to argue that the default should be " back dated" to the start of an AP, more difficult to challenge this now.

Personally I would lay a Formal Complaint (forget customer (dis) service dept. and address the complaint to the CEO Santander.

Clearly and concisely layout the events, your actions, the banks actions copies of correspondence that has been ignored should be attached if you have them as it would highlight the banks shortcomings.

A Formal Complaint allows Satans Bank 56 days to fully investigate and respond, after which you can make a complaint to FOS and or the ICO if the response is inadequate.

nem

[ncf355]

Re: Alliance & Leicester bank account defaulted by Santander

Wouldn't it be better to get 'ducks in a row' and ask the data controller for all info held first so the OP can prove what was previously sent Nem?

Also sounds as if although the OP originally offered £25 (a month?), this was never accepted so the balance remained at £507 (once they deducted the charges applied without actually contacting the OP to say they had done this)


So we have what should be a clear cut case (as if any of them ever are!) where:

1) OP informed them of inability to pay back the OD
2) No further payments were made

So Default should definitely be (at least in a sane persons eyes.....I know, I know....) at the date the letter regarding inability to continue the agreement was received by them

[nemesis45]

Re: Alliance & Leicester bank account defaulted by Santander

The Machinations of Santander/Abbey Nat,/ Alliance& Leics. mergers will I think be causing problems for years.
A SAR may be of use but Santander often don't have or claim not to have the data.

nem

[fozzypenfold]

Re: Alliance & Leicester bank account defaulted by Santander

Thanks very much all, I will try everything that has been suggested and let you know how I get on!

[nemesis45]

Re: Alliance & Leicester bank account defaulted by Santander

Good luck, please keep us up to date on events.
nem