Not upheld: payment blocking and inadequate explanation of fraud prevention measures complaint against Santander UK Plc

Decision detail

Summary

Miss B complained that Santander blocked a three-figure payment to a close friend's account, provided contradictory information about future payments to that account, and failed to explain its actions. The payment was subsequently approved and the restriction removed after Santander's internal review. The ombudsman found that Santander's fraud detection systems operated as intended and that Miss B had agreed to account terms permitting payment blocks for security purposes. Although the communication was inconsistent and caused Miss B significant stress, the ombudsman determined Santander did not act unfairly and declined to uphold the complaint.

The Ombudsman's reasoning

The ombudsman concluded that banks must operate fraud detection systems to protect customers, even though these can affect legitimate payments. The design of such systems is regulated by the FCA and it is not the ombudsman's role to direct changes to fraud systems. While Santander could not disclose sensitive fraud information to Miss B, the ombudsman was satisfied the payment was blocked because the systems were operating as intended. Miss B had agreed to account terms allowing for payment delays or blocks in such circumstances. Although the information provided was inconsistent and caused distress, staff were polite and professional, and the inconsistency reflected the bank's changing understanding as reviews progressed.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website