Santander apply punitive fees to an account on a DMP

[MBNAvictim]

Seems as though Santander aren't honouring agreements with previous Alliance & Leicester account-holders who have been transferred to Santander upon their takeover.

 

My old A&L account was under a debt management plan run by Consumer Credit Counselling Service with all fees and charges suspended on condition regular payments were made. This account was changed to a "Santander Account" and guess what? After a few months they have started levying a monthly £100 fee (or given the punitive amount I would describe it to be a fine). I can only assure that a.) Santander have "forgetten" that the account is the subject of a dmp, or b.) they have no scruples at all. What is the point of increasing the debt of someone who obviously cannot pay it? Together with my other creditor, Santander receive a monthly payment by CCCS on my behalf. I would assume that they also have the copy of my monthly budget originally forwarded to Alliance & Leicester by CCCS.

 

There's no way any payments have been missed as CCCS take the money by direct debit every month, then apportion the money to pay both creditors the correct amount. I've also increased my monthly payment.

 

While I know that banks retain the right to charge interest and fees on accounts under DMPs these have to be fair. I've got the impression that since we (the consumers) lost the court case that the bankers now know that it's open day for charges and Santander seem to be in the vanguard with their atrocious new "super charges".

 

Isn't there some rule against deliberately increasing a debt knowing the debtor is not in a position to pay extra fees and charges?

[MBNAvictim]

Credit where credit is due!!

 

Santander sent a nice letter in reply to my complaint and apologised over the fee which was added in error. The full amount will be refunded.

 

Well done, Santander.

[dpick]

While I know that banks retain the right to charge interest and fees on accounts under DMPs these have to be fair. I've got the impression that since we (the consumers) lost the court case that the bankers now know that it's open day for charges and Santander seem to be in the vanguard with their atrocious new "super charges".

 

Hi I could be wrong with this but as far as I know the OFT case was about Current account bank charges, nothing at all to do with Loan/Credit card charges though creditors would like it to relate to them as well.

 

I have reclaimed credit card charges and interest applied to those charges totalling approx £1200 in the last 12 months having to issue court claim in each case before the creditor made an out of court settlement.

 

dpick